AXA Cooperative Insurance Co. announces the interim financial results for the period ending on 30-09-2016 (Nine Months)

19 October 2016 05:39 AM

GIG 8250 -0.17% 29.30 -0.05

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss) before Zakat	11,194	4,462	150.87	9,528	17.49
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	4,236	684	519.3	6,112	-30.69
Gross written premiums (GWP)	387,053	372,883	3.8	200,542	93
Net written premiums (NWP)	346,327	328,542	5.41	182,862	89.39
Net incurred claims	216,777	204,380	6.07	219,495	-1.24
Net profit (loss) of policy holders investment	5,306	1,857	185.73	4,260	24.55
Net profit (loss) of shareholders capital investment	3,041	2,530	20.2	659	361.46
All figures are in (Thousands) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss) before Zakat	33,964	22,605	50.25
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	19,992	12,046	65.96
Gross written premiums (GWP)	1,038,348	990,148	4.87
Net written premiums (NWP)	959,819	890,716	7.76
Net incurred claims	643,624	615,472	4.57
Net profit (loss) of policy holders investment	12,087	6,031	100.41
Net profit (loss) of shareholders capital investment	6,344	7,572	-16.22
Earning or loss per share, Riyals	0.75	0.52	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for the quarter compared with same quarter last year	Profit before zakat and tax increased by SR 6,732 thousands compared to same quarter of last year. Such increase is mainly due to the improvement in loss ratio of Marine class by 30 % ( from 100 % in 2015 to 70 % in 2016). Similarly loss ratio in Engineering class showed improvement by 65% ( from to 117% in Q 3 2015 to 52% in Q 3 2016). Additionally investment income (for both policyholders and shareholders combined) increased by SR 3,960 thousands.
Reasons of increase (decrease) for the period compared with same period last year	The net profit before zakat and tax increased by 50% in current period as compared to nine months period ended 30 September 2015. Such increase can be attributed to the improvement in earned premium of motor by 17.5% & investment income from policy holders increased by SR 6,056 thousands.
Reasons of increase (decrease) for the quarter compared with the previous quarter	The current quarter increase in net profit before zakat and tax by SR 1,666 thousands which is due to improvement in loss ratio of Marine segment improved by 4% ( from 74% in June to 70% in September quarter end) and Engineering improved by 47.6% (from 99.6 % to 52%).
External auditor's report containing reservation	Attention is drawn to note 2 of the financial statements: The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and not in accordance with standards issued by the Saudi Organization for Certified Accountants and the Company stresses that there is no material financial impact on the financial statements as a result of preparation, in accordance with IFRS.
Other notes	Earnings Per Share (EPS) is calculated before zakat and reflects the increase in share capital of the Company which was agreed on the Extraordinary General Assembly dated 21-04-1436H corresponding on 10-02-2015. The share capital was increased from SR 200 million to SR 450 million that leads to an increase in number of shares from 20 million to 45 million. Calculations of EPS is based on weighted average number of shares which are 45,000 thousand shares for Nine month period ended September 30, 2016. Accordingly shares for Nine month period ended September 30, 2015 has also been reclassified and is calculated by dividing net earnings with weighted average number of shares which are 43,265 thousand shares.The total shareholder equity (no minority interest) at current period is 492.1 million versus 465.0 million riyals for the same period of 2015 with an increase of 5.8%.

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