MetLife AIG ANB Cooperative Insurance Co. announces the interim financial results for the period ending on 30-06-2017 (Six Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) before Zakat | -3,242 | -7,588 | 57.27 | -6,868 | 52.8 |
| Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) | -4,516 | -9,507 | 52.5 | -8,197 | 44.91 |
| Gross written premiums (GWP) | 87,983 | 56,855 | 54.75 | 103,320 | -14.84 |
| Net written premiums (NWP) | 63,116 | 32,020 | 97.11 | 87,661 | -28 |
| Net incurred claims | -41,835 | -33,442 | -25.1 | -38,083 | -9.85 |
| Net profit (loss) of policy holders investment | 478 | 357 | 33.89 | 304 | 57.24 |
| Net profit (loss) of shareholders capital investment | 1,383 | 1,943 | -28.82 | 1,380 | 0.22 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) before Zakat | -10,110 | -11,267 | 10.27 |
| Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) | -12,713 | -13,574 | 6.34 |
| Gross written premiums (GWP) | 191,303 | 111,838 | 71.05 |
| Net written premiums (NWP) | 150,777 | 73,337 | 105.59 |
| Net incurred claims | -79,917 | -55,065 | -45.13 |
| Net profit (loss) of policy holders investment | 782 | 625 | 25.12 |
| Net profit (loss) of shareholders capital investment | 2,763 | 2,390 | 15.61 |
| Earning or loss per share, Riyals | -0.29 | -0.34 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for the quarter compared with same quarter last year | Net losses before Zakat for the second quarter 2017 have improved over the second quarter 2016 by SR 4,346 thousand (57.28%) mainly due to; Improvement in underwriting results by SR 5,585 thousand driven by the increase in Net Earned Premiums along with improvement in net incurred claims ratio, offset by; Increase in general and administration expenses due to growth in operations size to support the growth in business. |
| Reasons of increase (decrease) for the period compared with same period last year | Net losses before Zakat for the period ended June 2017 have improved over the same period of 2016 by SR 1,157 thousand (10.27%) mainly due to Improvement in underwriting results by SR 3,973 thousand driven by the increase in Net Earned Premiums along with improvement in net incurred claims ratio, offset by Increase in general and administration expenses due to growth in operations size to support the growth in business volume. |
| Reasons of increase (decrease) for the quarter compared with the previous quarter | Net losses before Zakat for the second quarter 2017 have improved over the previous quarter by SR 3,626 thousand (52.8%) mainly due to Improvement in underwriting results by SR 3,078 thousand driven by the increase in Net Earned Premiums along with improvement in net incurred claims ratio. |
| External auditor's report containing reservation | It was mentioned in the auditors review report that based on their review, nothing has come to their attention that causes them to believe that the accompanying interim condensed financial information are not prepared, in all material respects, in accordance with International Accounting Standard 34, Interim Financial Reporting and Saudi Arabian Monetary Authority (SAMA) guidance on accounting for Zakat and Income Tax. |
| Other notes | 1- Loss per share has been computed for the current period by using 35,000,000 shares which is the weighted average number of shares outstanding as at 30 Jun 2017. The weighted average number of ordinary shares for the same period 2016 was 32,836,538 computed using an adjustment factor of 1.7 which is a ratio of the theoretical ex-rights price of SR 33.52 per share and the closing price per share of SR 57.04 on 22 February 2016, the last day on which the shares were traded before the rights issue. 2- Total equity (there is no minority interest) as at the end of the current period is SR 225,895 thousand versus SR 247,940 thousand for same period of previous year with a decrease of 8.89%. 3- Total comprehensive losses after zakat for current quarter is SAR 3,782 thousand compared to SAR 7,648 thousand for same quarter last year with a decrease of 50.55%, and compared to SAR 7,408 thousand for previous quarter which represents a decrease in losses by 48.95%.and the comprehensive losses for the period is 11,190 thousand compared to 11,390 thousand for the same period last year with a decrease of 1.76%. 4- Accumulated losses as at 30 June, 2017 is SAR 124,105 thousand representing 35.46 % of share capital. 5- Main reasons for these accumulated losses are: a. High cost for raising initial and additional capital b. Prolonged pre-incorporation period which started from 18/1/2012 and until 28/8/2013 which required additional expenses. c. Pre-operating expenses which represents expenses incurred from 29/8/2013 and until 31/3/2014 the date when insurance operations have started. d. Although the company has achieved positive underwriting results from insurance operations during the period from 1/4/2014 up to 30/6/2017, the size of general and administrative expenses during this period was higher than the underwriting results; however, the gap between general and administrative expenses and underwriting results has been narrowing down throughout the period 6- To reduce the accumulated losses, the company will continue to grow its business and keep tight controls on expense to narrow down the gap between underwriting results and general and administrative expenses to eventually reach the break-even point as planned for. 7- The company will be subject to the procedures and instructions issued by the Capital Market Authority related to listed companies with accumulated losses reaching 35% and less than 50% in accordance with resolution issued by CMA board no. 1-130-2016 dated 24/1/2016. 8- The company will announce to the public immediately and without delay once the accumulated losses are reduced below the 35% in accordance with the above-mentioned procedures and instructions issues by CMA. |
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