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

15 March 2017 04:48 AM

SAICO 8100 -0.32% 12.50 -0.04

Element	Current year	Previous year	% Change
Net profit (loss) before Zakat	58,172	36,804	58.06
Earning or loss per share, Riyals	2.03	1.59	-
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	51,839	36,414	42.36
Gross written premiums (GWP)	801,806	888,220	-9.73
Net written premiums (NWP)	509,129	560,361	-9.14
Net incurred claims	343,032	459,710	-25.38
Net profit (loss) of policy holders investment	6,855	4,424	54.95
Net profit (loss) of shareholders capital investment	6,558	1,248	425.48
Pre operating expenses (first operation year)	-	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reason for increase in net profit before zakat during the year 2016 compared to the profit for the previous year was due to a decrease in net claims incurred by 25% and a decrease in provision for doubtful debts by 7 % also a decrease in inspection and supervision fees by 9%, increase in policy holders investment income by 55% and increase in commission income by 14% also an increase in other income by 9%, despite the decrease in net earned premiums by 14% and an increase in policy acquisition costs by 9% also an increase in general and administration expenses by 17%.
External auditor's report containing reservation	The auditors report draws attention to the fact that the Company have prepared the financial statements in accordance with International Financial Reporting Standards (IFRS) incorporating International Accounting Standard (IAS) 34 and not in accordance with accounting standards generally accepted in the Kingdom of Saudi Arabia as issued by the Saudi Organization for Certified Public Accountants. The Company assures that there are no material differences or substantial impact on the interim financial statements as a result of preparation.
Reclassifications in annual financial results	Certain re classifications were made in comparative figures to confirm to the current presentation.
Other notes	Earnings per share after zakat and reflects the increase in share capital of the Company which was agreed on the Extraordinary General Assembly dated 31-05-2015 (Corresponding to 13 Shabaan1436H). The share capital was increased from SR 100 million to SR 250 million that leads to an increase in number of shares from 10 million to 25 million. Calculation of EPS is based on weighted average number of shares which are 25,000 thousand shares for twelve Months period ended December 31, 2016. Accordingly shares for twelve Months period ended December 31, 2015 has also been reclassified and is calculated by dividing net earnings with weighted average number of shares which are 20,324 thousand shares. The total shareholder equity (no minority rights) at current period is 298 Million versus 247 Million riyals for the same period of 2015 with an increase of 20.65%.

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