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Palestine Insurance realizes a loss of $0.36 million in 1H 2011

2011-08-16

The Palestine Exchange (PEX) received reviewed interim consolidated condensed financial statements from Palestine Insurance (PICO). The PEX disclosure rules in place give all of the PEX listed companies a period of 45 days to report their first half interim financial statements as reviewed by their independent external auditor. Their disclosure has been published on the PEX website (www.pex.ps) and emailed to PEX member securities firms in conjunction with this press release.

The disclosed draft financials were not approved by the Palestinian Monetary Authority (PMA) and there may be some material changes. The bank must disclose the reviewed financials by the independent external auditor once approved by the PMA.

The disclosed information includes: Independent Accountants" Review Report, the Statement of Financial Position, the Income Statement, the Statement of Comprehensive Income, Changes in Equity Ownership, the Statement of Cash Flows and Notes to the interim financial statements (19 notes). The company also provided its interim financial statements via the approved electronic form of disclosure applicable to the Insurance Sector. The interim report also includes the additional information required by Article (38/2) of the PEX disclosure rules in place concerning management, issued shares, material changes and significant events that may have affected financial performance during the first half of the year.

According to company data for the first half of this year, net loss reached (363,010) USD, compared with a net profit before taxes of 11,493 USD from the first half of 2010. Total assets of the company have reached 33,742,248 USD as of June 30th, 2011, compared to total assets of 32,365,617 USD as of December 31st, 2010, a net increase of 4.3%. Total liabilities of the company have reached 29,778,712 USD as of June 30, 2011, compared to total liabilities of 28,166,096 USD as of December 31st, 2010, a net increase of 5.7%. Net ownership equity of the company has reached 3,963,536 USD as of June 30th, 2011, compared with a net ownership equity of 4,199,521 USD as of December 31st, 2010, a net decrease of 5.6% in the last six months.

Within the “Basis for Qualifications” paragraph in the Independent Auditors’ Review Report (Ernst & Young), qualifications were made regarding a serious issue. Within the conclusion paragraph, the following was conveyed: Based on our limited review, with the exception of the impact of the basis of qualification paragraph, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements are not, in all material respects, presented in accordance with International Accounting Standard No. (34)