Al-Rajhi Company for Cooperative Insurance announces the interim financial results for the period ending on 31-03-2017 (Three Months)

11 May 2017 03:43 PM

ALRAJHI TAKAFUL 8230 46.63% 104.40 33.20

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss) before Zakat	34,113	8,756	289.6	36,266	-5.94
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	64,397	43,531	47.93	45,338	42.04
Gross written premiums (GWP)	1,107,212	533,180	107.66	475,715	132.75
Net written premiums (NWP)	1,076,006	500,994	114.77	459,306	134.27
Net incurred claims	540,683	271,211	99.36	381,112	41.87
Net profit (loss) of policy holders investment	5,298	2,002	164.64	9,159	-42.16
Net profit (loss) of shareholders capital investment	3,079	-3,409	-	17,988	-82.88
Earning or loss per share, Riyals	0.85	0.22	-	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for the quarter compared with same quarter last year	The increase in Profit before Zakat is due to the large increase in the Company's underlying business volumes. Gross contributions written increased by 107.66 % while net contributions earned increased by 92.90 %. As a result, net underwriting surplus increased by 47.93 %. Policyholder investment income increased by 164.64 % while the company reported shareholder investment income of SAR 3,079 (thousands) compared to investment losses of SAR 3,409 (thousands) for the same quarter of the previous year.
Reasons of increase (decrease) for the quarter compared with the previous quarter	The small decrease in Profit before Zakat is mainly due to a decrease of policyholder & shareholder investment income by 42.16 % and 82.88 %, respectively. The Company's underlying business volumes increased signficantly, with gross contributions written increasing by 132.75 % while net contributions earned increased by 41.80 %. As a result, net underwriting surplus increased by 42.04 %.
Reclassifications in quarterly financial results	The comparative amounts of previous periods have been reclassified to match with the current presentation. The company hereby confirms that there are no classification changes in the net underwriting surplus or net profit before Zakat .
Other notes	Comperhensive income for the current period is SAR 32,208 thousand, against SAR 8,606 thousand for the same quarter of the previous year or an increase of 274.25 %. Comprehensive income decreased by SAR 354 thousand or 1.09 % over the quarter ended December 31, 2016. Profit per share for the period was calculated based on the Profit before Zakat. The total shareholder's equity (no minority interest) for the current period is SAR 458,596 thousand compared to SAR 347,901 thousand or an increase of 31.82 % for the same quarter of the previous year. Shareholder's equity of the current quarter is 6.81 % higher than the SAR 429,363 thousand reported in the quarter ended December 31, 2016.

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