Salama Cooperative Insurance Co. announces its Annual Financial Results for the Period Ending on 2023-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Insurance Revenues | 802,288 | 598,351 | 34.08 | ||
| Result of Insurance Services | 78,322 | -30,646 | - | ||
| Net Profit (Loss) of The Insurance Results | 38,037 | -38,004 | - | ||
| Net Profit (Loss) of The Investment Results | 27,510 | 19,248 | 42.92 | ||
| Net Insurance Financing Expenses | -1,994 | 367 | - | ||
| Net Profit (Loss), After Zakat, Attributable To Shareholders | 51,302 | -38,866 | - | ||
| Total Comprehensive Income | 54,369 | -36,585 | - | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 205,813 | 60,997 | 237.41 | ||
| Profit (Loss) per Share | 3.25 | -2.55 | |||
| 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 | - | - | |
| Accumulated Losses | -35,727 | 17.86 | |
| 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 | The increase in insurance revenues during this year compared to the previous year amounted to SAR 204 million, an increase of 34% as a result of the increase in earned revenues. This is mainly due to the growth in the volume of operations in all insurance sectors of the company for this year compared to the previous year. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | "“The net profit before zakat for this year amounted to SAR 55.30 million, compared to the net loss before zakat for the previous year, which amounted to SAR (35.87) million. The reason for the profit for this year is mainly attributed to the following:
(1) Net profits from insurance results for this year amounted to SAR 38 million, compared to net losses from insurance results for the previous year, which amounted to SAR (38) million. This profit is due to the growth in revenues and profits from insurance results for the health and motor insurance sectors for this year compared to the previous year.
(2) An increase in investment income of SAR 8 million for this year compared to the previous year.
(3) A decrease in other operating expenses for this year by SAR 11 million compared to the previous year.
This comes despite the increase in net insurance financing expenses by SAR 2 million for this year compared to the previous year and the decrease in other income related to the pool for Hajj and Umrah insurance for this year by SAR 1 million compared to the previous year. " |
| 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) | The independent auditors’ report draws an attention to Note 1 to the accompanying financial statements which indicates that the Company had accumulated losses of Saudi Riyals 35.7 million as of 31 December 2023. Further, the Company’s solvency margin is 32.8% as of 31 December 2023, which is below the minimum solvency requirements as mandated by the Saudi Central Bank (“SAMA”). The ability of the Company to improve its financial performance and meet the minimum solvency margin requirements is dependent on the favourable outcome and realisation of the Company’s planned measures and actions detailed further in Note 1. These events and conditions, along with other matters as set forth in Note 1 to the accompanying financial statements, indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. |
| 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.
Earnings per share during the current year amounted to SAR 3.25 / share, compared to the loss per share SAR (2.55) / share in the previous year, by dividing the net profit after zakat, amounting to SAR 51,302 thousand, by the weighted average number of ordinary shares outstanding 15,785 thousand shares for the current year, and by dividing the net loss after zakat amounted to SAR (38,866) thousand by the weighted average number of ordinary shares outstanding 15,266 thousand shares for the previous year. During the year, the company increased its capital through a rights issue of 10 million shares at 10 riyals per share, which led to an increase in the number of shares by 10 million shares. This resultant an increase in the number of shares from 10 million shares to 20 million shares during the year 2023.
Total shareholders' equity at the end of the current year amounted to SAR 205,813 thousand, compared to SAR 60,997 thousand at the end of the previous year, an increase of 237%.
The total equity at the end of the current year amounted to SAR 204,979 thousand, compared to SAR 60,856 thousand at the end of the previous year, an increase of 237%.
The total comprehensive income for the current year amounted to SAR 54,369 thousand, compared to the total comprehensive loss of SAR (36,585) thousand for the previous year.
Net profit before zakat for the current year amounted to SAR 55,302 thousand, compared to the net loss before zakat amounting to SAR (35,866) thousand for the previous year." |
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