AXA Cooperative Insurance Co. announces the annual financial results for the period ending on 31-12-2016

05 March 2017 08:00 AM

GIG 8250 31.74% 38.60 9.30

Element	Current year	Previous year	% Change
Net profit (loss) before Zakat	42,677	27,855	53.21
Earning or loss per share, Riyals	0.95	0.64	-
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	22,879	15,960	43.35
Gross written premiums (GWP)	1,153,974	1,128,176	2.29
Net written premiums (NWP)	1,060,142	1,002,020	5.8
Net incurred claims	861,215	827,244	4.11
Net profit (loss) of policy holders investment	16,551	8,349	98.24
Net profit (loss) of shareholders capital investment	8,929	7,618	17.21
Pre operating expenses (first operation year)	-	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The Increase in net profit before zakat by SR 14.8 million (53%) can be attributed to improvement in overall claim ratio which improved from 83% in 2015 to 82% in 2016. This improveement is mainly contributed by better claim ratio in Accident and liability , motor and marine segments. In addition, , increase in investment income (Policy holders & Shareholders combined) by SR 9.5 million or 53 % ( from SR 15.9 million in 2015 to SR 25.4 million in 2016) in current period as compared to corresponding period of last year contributed to increase in net profit.
External auditor's report containing reservation	Attention is drawn to note 2 of the financial statements: The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and not in accordance with standards issued by the Saudi Organization for Certified Accountants and the Company stresses that there is no material financial impact on the financial statements as a result of preparation, in accordance with IFRS.
Other notes	Earnings Per Share (EPS) is calculated before zakat and reflects the increase in share capital of the Company which was agreed on the Extraordinary General Assembly dated 21-04-1436H corresponding on 10-02-2015. The share capital was increased from SR 200 million to SR 450 million that leads to an increase in number of shares from 20 million to 45 million. Calculations of EPS is based on weighted average number of shares which are 45,000 thousand shares for Twelve month period ended December 31, 2016. Accordingly shares for twelve month period ended December 31, 2015 has also been reclassified and is calculated by dividing net earnings with weighted average number of shares which are 43,712 thousand shares.

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