Saudi Arabian Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross Written Premiums (GWP) | 229,338 | 249,570 | -8.11 | 464,702 | -50.65 |
| Net Written Premiums (NWP) | - | - | - | - | - |
| Net Incurred Claims | - | - | - | - | - |
| Net Profit (Loss) of Policy Holders Investment | - | - | - | - | - |
| Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) | - | - | - | - | - |
| Net Profit (loss) of Shareholders Capital Investment | - | - | - | - | - |
| Net Profit (Loss) before Zakat | 30,919 | -44,807 | - | 10,077 | 206.83 |
| Total Comprehensive Income | 29,071 | -46,344 | - | 8,229 | 253.28 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Gross Written Premiums (GWP) | 693,946 | 674,560 | 2.87 |
| Net Written Premiums (NWP) | - | - | - |
| Net Incurred Claims | - | - | - |
| Net Profit (Loss) of Policy Holders Investment | - | - | - |
| Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) | - | - | - |
| Net Profit (loss) of Shareholders Capital Investment | - | - | - |
| Net Profit (Loss) before Zakat | 40,995 | -40,559 | - |
| Total Comprehensive Income | 37,299 | -44,346 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 271,789 | 247,675 | 9.74 |
| Profit (Loss) per Share | 1.24 | -1.48 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| -96,772 | 300,000 | -32.26 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are marked "-" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.
The following explanation will cover the relevant financial information reflected in the announcement above along with explanation on the new presentation of the financial results which are attached to this announcement:
The Increase in net profit before zakat and income tax for the quarter of 75,726 thousand riyals compared to a net loss in the same quarter of the previous year was due to the following main reasons:
- Increase in insurance service result of 76,480 thousand riyals compared with the same quarter of the previous year. This was driven by an increase in insurance revenue of 40,449 thousand riyals, an increase of 18%, and a decrease in insurance service expense of 34,476 thousand riyals, a decrease of 16%, in addition to a decrease in net expenses from reinsurance contracts held of 1,555 thousand riyals, a decrease of 3% compared with the same quarter of the previous year.
-Increase in net investment income of 2,300 thousand riyals compared with the same quarter of the previous year, an increase of 90%.
These favorable movements were partially offset by the increase in other operating expenses of 6,743 thousand riyals compared with the same quarter of the previous year, an increase of 352%.
Moreover, Gross Written Premiums (GWP) decreased by 20,232 thousand riyals compared with the same quarter of the previous year, a decrease of 8%. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are marked "-" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.
The following explanation will cover the relevant financial information reflected in the announcement above along with an explanation on the new presentation of the financial results, which is attached to this announcement.
The Increase in net profit before zakat and income tax for the quarter of 20,842 thousand riyals an increase of 207% compared with the previous quarter due to the following main reasons:
- Increase in insurance service result of 29,971 thousand riyals compared with the previous quarter .This was driven by an increase in insurance revenue of 7,196 thousand riyals, an increase of 3%, and a decrease in insurance service expense of 49,468 thousand riyals a decrease of 21%. Which was partially offset by an increase in net expenses from reinsurance contracts held of 26,693 thousand riyals, an increase of 116% compared with the previous quarter.
These were partially offset by the following unfavorable movements:
-Decrease in net investment income of 450 thousand riyals compared with the previous quarter, a decrease of 8%.
-Increase in other operating expenses of 5,185 thousand riyals compared with the previous quarter, an increase of 149%.
Moreover, Gross Written Premiums (GWP) decreased by 235,364 thousand riyals compared with the previous quarter, a decrease of 51%. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are marked "-" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.
The following explanation will cover the relevant financial information reflected in the announcement above along with explanation on the new presentation of the financial results which are attached to this announcement:
The Increase in net profit before zakat and income tax for the period of 81,554 thousand riyals, compared to a net loss in the same period of the previous year was due to the following main reasons:
-Increase in insurance service result of 87,952 thousand riyals compared with the same period for the previous year. This was driven by an increase in insurance revenue of 99,096 thousand riyals, an increase of 24%, and a decrease in net expenses from reinsurance contracts held of 101,841 thousand riyals, a decrease of 58% compared with the same period for the previous year. Which was partially offset by an increase in insurance service expense of 112,985 thousand riyals an increase of 38%, compared with the same period for the previous year.
These were partially offset by the following unfavorable movements:
-Decrease in net investment income of 8,436 thousand riyals compared with the same period for the previous year, a decrease of 45%.
-Increase in other operating expenses of 8,145 thousand riyals compared with the same period for the previous year, an increase of 204%.
Moreover, Gross Written Premiums (GWP) increased by 18,786 thousand riyals compared with the same period for the previous year, an increase of 3%. |
| Statement of the type of external auditor's report | Unmodified Conclusion |
| Reclassification of Comparison Items | The Company has reclassified and restated comparative information to meet the requirements of the newly implemented standards IFRS 17 and IFRS 9. |
| Additional Information | The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are marked "-" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.
Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies.
The profit per Share for the current period is SAR 1.24 compared to SAR (1.48) for the same period for the previous year. Which was calculated based on weighted average number of shares which are 30,000 thousand shares.
Total Shareholders’ Equity (no minority interest) as at end of current period is 271,789 thousand riyals versus 247,675 thousand riyals as at end of the same period in the previous year, an increase of 10 %.
Accumulated losses have reached to 96,772 thousand riyals as at 30 June 2023 representing 32.26% of the capital of 300 million Saudi riyals as compared to the reported accumulated losses as of 31 March 2023 amounting to 125,842 thousand riyals.
The procedures for the listed companies in Saudi Stock exchange having accumulated losses of more than 20% and less than 35% of share capital will be applied. |
| Attached Documents |  |
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