Allied Cooperative Insurance Group announces the annual financial results for the period ending on 31-12-2016

12 March 2017 08:08 AM

ACIG 8150 62.18% 19.30 7.40

Element	Current year	Previous year	% Change
Net profit (loss) before Zakat	8,344	11,133	-25.05
Earning or loss per share, Riyals	0.42	0.56	-
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	6,519	9,986	-34.72
Gross written premiums (GWP)	510,618	549,441	-7.07
Net written premiums (NWP)	431,792	458,544	-5.83
Net incurred claims	344,715	290,990	18.46
Net profit (loss) of policy holders investment	4,922	869	466.4
Net profit (loss) of shareholders capital investment	-768	2,960	-
Pre operating expenses (first operation year)	-	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The company has decreasing of net profit during the current period compared to the same period of the previous year due to decrease in gross premiums written by 7% , decrease in net written premiums by 6%, increase policy acquisition cost by 11% , increase general and administrative expenses by 18% ,increase in net claims incurres by 18% , decrease in other underwriting income by 2 % besides to the loss in shareholders investments in amount SR 768 thousands during the current period comparing to the profit of shareholders investments in amount SR 2,960 thousands during the same period of the previous year. although increase in reinsurance commission earned by 5% , increase in net premiums earned by 13% , increase in other income by 36% , increase in net profit of policy holders investments by 466% .
External auditor's report containing reservation	the external auditor issued his report with an Explanatory Paragraphs We draw attention to note 2 to the accompanying financial statements that these financial statements have been prepared in accordance with International Financial Reporting Standards and not in accordance with accounting standards generally accepted in the Kingdom of Saudi Arabia as issued by the Saudi Organisation for Certified Public Accountants SOCPA
Reclassifications in annual financial results	Certain of the prior year amounts have been reclassified to conform to the presentation in the current year.
Other notes	the total of shareholders equity are SR 125,151 thousand during the current period comparing SR 116,959 thousands during the same period of the previous year increasing by 7 % ( There are not minority interest )

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