Al Sagr Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross Written Premiums (GWP) | 125,491 | 132,530 | -5.31 | 125,792 | -0.24 |
| 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 | 18,996 | 5,657 | 235.8 | 8,966 | 111.87 |
| Total Comprehensive Income | 17,996 | 4,457 | 303.77 | 6,966 | 158.34 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Gross Written Premiums (GWP) | 365,304 | 357,742 | 2.11 |
| 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 | 39,186 | -55,267 | - |
| Total Comprehensive Income | 34,986 | -58,867 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 188,444 | 143,831 | 31.02 |
| Profit (Loss) per Share | 2.5 | -4.2 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 0 | 140,000 | 0 | |
| 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 | Net profit before zakat increased by SR 13.3 million (236%) due to following reasons:
1) Insurance service results increased by 19.4 million in which the main contributing factor was increase in net income from reinsurance contracts held. 2) Increase in net investment income by SR 3.7 million. 3) The impact of increase in net profit before zakat due to the above mentioned factors was reduced by decrease in other income by SR 7.1 million and by increase in other operating expenses by SR 1.6 million. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Net profit before zakat increased by SR 10 million (112%) due to following reasons:
1) Insurance service results increased by 19 million in which the main contributing factor was increase in net income from reinsurance contracts held. 2) The impact of increase in net profit before zakat due to the above mentioned factor was reduced by decrease in investments and other income by SR 8 million. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net profit before zakat increased by SR 94.4 million (171%) due to following reasons:
1) Insurance service results increased by 74.3 million in which the main contributing factors were increase in insurance revenue by SR 13.3 million, reduction in insurance service cost by SR 25.5 million and decrease in net expenses from reinsurance contracts held by SR 35.5 million. 2) Increase in net investment income by SR 20 million. |
| Statement of the type of external auditor's report | Unmodified Conclusion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | None |
| Reclassification of Comparison Items | Certain prior period amounts have been reclassified for consistency with the current period presentation only. These changes were made for better presentation of the balances and transactions in annual financial statements of the Company. |
| Additional Information | During the quarter, the financial performance of the Company is substantially improved from the same quarter last year and from the previous quarter. As a result of this, the Company is able to meet the minimum solvency margin requirement, achieved positive operational cash flows and removed the accumulated losses. As of 30th September 2023, the solvency margin reached up to 100.3% of the minimum paid up capital, operational cash inflows increased up to SR 6.9 million and accumulated losses were converted to retained earnings. Due to these positive results, the external auditors removed the "emphasis of matter" paragraph which was showing material uncertainty on the going concern assumption of the Company.
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 January 1, 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 reported as "0" 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.
1. Profit per share was calculated on net profit after Zakat.
2. Total shareholders’ equity (there are no minority rights) at 30/09/2023 SAR 188,444 thousand compared to SAR 153,458 thousand for the comparative year ended December 31, 2022 which reflects an increase of 22.8% and compared with similar period last year amount to SAR 143,831 thousand shows an increase of 31%.
3. The Total Comprehensive Income attributable to Shareholders for the current quarter is SAR 17,966 thousand compared with Total Comprehensive income attributable to Shareholders amounting to SAR 4,457 thousand for the comparative quarter last year showing an increase of 304%. The total comprehensive income for the current period is SAR 34,986 thousand compared to Total Comprehensive Loss attributable to Shareholders SAR (58,867) thousand for the same period last year showing an increase of 159%. |
| Attached Documents |
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