Riyadh – Mubasher: Sabb Takaful posted net profits of SAR 2.52 million ($671,000) in the fourth quarter of 2016 against net loss of SAR 9.98 million ($2.66 million) in the year-ago period.

The main reason for the increase in net profit is the decrease in change in reserve for takaful activities year-on-year, as a result of changing the calculation methodology, adding to higher NWP by 9.6% and investment income by 77.4%.

Lower policy acquisition costs by 51.6% and in general and administrative expenses by 30.8%, due to the rise in the supervision and inspection cost accruals during the same quarter last year also contributed to the achieved profits, according to a bourse filing.

The company’s profits surged 225.7% to SAR 11.86 million in the twelve months of 2016 from SAR 3.64 million in the year-ago period.

The rise in the 2016 results was due to the increase in net profit are due to a marginal increase in fees and commission income by 2.7%, decrease in policy acquisition costs by 17.4%, higher investment income by 70.7% and lower general and administrative expenses by 11%.