The Company for Cooperative Insurance announces its Annual Financial Results for the Period Ending on 2023-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Insurance Revenues | 15,265,424 | 11,408,348 | 33.81 | ||
| Result of Insurance Services | 1,197,931 | 923,045 | 29.78 | ||
| Net Profit (Loss) of The Insurance Results | 681,172 | 317,133 | 114.79 | ||
| Net Profit (Loss) of The Investment Results | 435,540 | 372,116 | 17.04 | ||
| Net Insurance Financing Expenses | -68,314 | -5,751 | 1,087.86 | ||
| Net Profit (Loss), After Zakat, Attributable To Shareholders | 616,426 | 302,193 | 103.98 | ||
| Total Comprehensive Income | 614,257 | 196,363 | 212.82 | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 3,614,828 | 3,126,163 | 15.63 | ||
| Profit (Loss) per Share | 4.11 | 2.01 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in revenues during the current year compared to the last year is | Insurance revenues increased during this year by SAR 3,857,076K compared to the last year, an increase of 33.81%. This is mainly due to the growth in Gross Written Premiums (GWP) of SAR 4,114,837K, a growth of 28.66%. which is driven by the strong performance of the main business lines (Health, Motor, and General insurance). |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The company achieved a net income before zakat of SAR 717,806K during the current year compared to SAR 391,579K for the last year, an increase of 83.31%. While the net income after Zakat amounted to SAR 616,426K during the current year compared to SAR 302,193K for the last year, an increase of 103.98%, which was due to the following main reasons:
- Improvement in results of insurance services by SAR 274,886K compared to last year, i.e. a growth of 29.78% which was driven by an increase of insurance revenues supported by a better management of claims leading to reduction in incurred claims.
- Growth in net profit of insurance results for the current year amounted to SAR 364,039K compared to last year, i.e. a growth of 114.79% driven by the improvement in results of insurance services, in addition to the favorable decrease in net expenses from reinsurance contracts held by an amount of SAR 89,153K, i.e. a decrease of 14.71%.
- The Company’s investment portfolio witnessed a strong growth leading to an increase in Investment Income by SAR 63,424K compared to last year, i.e. growth of 17.04% which is driven by higher profit rates and steady fixed income returns.
- Reversal of expected credit losses on financial assets allowance by SAR 16,234K during the current year compared to an increase in ECL charge the last year by SAR 141,502K. This was a result of the company's continuous efforts in collection.
- Net insurance finance expense increased by SAR 62,563K, an increase of 1087.86%. mainly due to increase in liability for incurred claims, although marginal reduction in discount rates were observed.
- Other net operating expenses increased by SAR 196,409K during the current year, as the Company continues to invest in the company's strategy 2025 related projects and initiatives. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | The company has reclassified and restated the financial statements for the comparative figures to be in line with the requirements of IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments). |
| 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.
The earnings per share (EPS) calculated based on Net Profit after Zakat.
Earnings per share for the current year amounted to SAR 4.11, compared to SAR 2.01 for last year, after adjusting the earnings per share as a result of issuing bonus shares during the current year, the adjustment occurred by dividing the net income attributable to shareholders after zakat, which amounted to SAR 616,426K for the current year by the weighted average of the outstanding ordinary shares of 150,000K shares for the current year compared to SAR 302,193K based on 150,000K shares for the previous year.
The weighted average number of common shares issued and outstanding in the prior year is adjusted for bonus shares issued during the current year.
Total Shareholders’ Equity (after deducting minority equity) at end of current year is SAR 3,614,828K versus SAR 3,126,163K at end of the previous year, an increase of 15.63%.
Total Equity at end of current year is SAR 3,621,817K versus SAR 3,132,560K at end of the previous year, an increase of 15.62%. |
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