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Saudi Enaya Cooperative Insurance Co. announces the interim financial results for the period ending on 31-12-2016 (Twelve Months)

ENAYA 8311 61.83% 17.64 6.74
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) before Zakat -4,481 -11,666 61.59 -6,262 28.44
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) -5,550 -10,240 45.8 -7,581 26.79
Gross written premiums (GWP) 39,525 9,008 338.78 21,373 84.93
Net written premiums (NWP) 43,595 5,394 708.21 12,822 240
Net incurred claims 9,431 7,301 29.17 6,356 48.38
Net profit (loss) of shareholders capital investment 1,856 -854 - 1,652 12.35
All figures are in (Thousands) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) before Zakat -25,824 -51,996 50.33
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) -28,627 -47,525 39.76
Gross written premiums (GWP) 128,825 70,933 81.62
Net written premiums (NWP) 97,026 42,373 128.98
Net incurred claims 33,889 20,362 66.43
Net profit (loss) of shareholders capital investment 4,962 -2,673 -
Earning or loss per share, Riyals -1.29 -1.3 -
All figures are in (Thousands) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for the quarter compared with same quarter last year 'The net loss for Q4 2016 amounting to SR 4,481K, compared to a net loss of SR 11,666K in Q4 2015, improved by SR7,185K representing an improvement of 62%. This improvement in results is primarily due to growth in business by SR 30,517K representing 339%, resulting increase in net earned premiums by SR 9,344K representing an increase of 84%. Other factors contributing to the improvement in results include improvement of shareholders' investment income by SR 2,710K representing improvement of 317% and decrease in G&A expenses by SR 1,757K showing 13% improvement.
Reasons of increase (decrease) for the period compared with same period last year The net loss for the twelve month period ended 31 December 2016 amounting to SR 25,824K, compared to a net loss of SR 51,996K for the twelve month period ended 31 December 2015, improved by SR 26,172K representing an improvement of 50%. This improvement in results is due to a significant growth in the business, improved technical performance, reduced general and administrative expenses, increased investment returns and various other aspects of business.
The Gross Written Premiums have increased by SR 57,892K, an increase of 82% compared to the same period last year due to an improved sales strategy and various other initiatives taken by the Company. Net earned premiums improved by SR35,811K represented by an increase of 135%, versus the same period of 2015. The deficit from Insurance Operations for 2016 has improved by SR18,898 (SR28,627K versus 2015 deficit of SR 47,525). Investment income has improved by SR 7,635K representing a 286% improvement (gain of SR 4,962K for 2016 compared to a loss of SR 2,673 in 2015).
Reasons of increase (decrease) for the quarter compared with the previous quarter 'The net losses before zakat of SR 4,481K in Q4 2016 versus net losses before zakat of SR 6,262K in Q3 2016, amounted to an decrease of SR 1,781K or 28%. This decrease in loss in primarily due to increase in net earned premium amounting to SR 6,359K (Q4 2016: 20,481 and Q3 2016: 14,122) and due to improvement in collection policy the provision for doubtful debts is reduced by SR 1,428K in last quarter 2016.
External auditor's report containing reservation The joint auditors interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34 and not in accordance with the Standard of interim financial reporting issued by SOCPA. However the Company assures that there are no significant differences in the results contained within the financial statements due to using International Accounting Standards rather than the SOCPA accounting standards.
Other notes 1. Total shareholders' equity (there is no minority interest) for the current period reached 171,747 thousand SAR compared to 200,271 thousand SAR for the same period last year, a decrease of 14%. 2. Earning per share is calculated by the weighted average number of shares amounting to 20,000 thousand for 2016 and 40,000 thousand for 2015. Noting that earning/loss per share calculated before Zakat and income tax.

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