| Reasons of increase (decrease) for the quarter compared with same quarter last year |
The decrease in net profit is due to decrease in Fees and commission income by 24.3% (due to decrease in commission and surplus from Reinsurers) and decrease in investment income by 26%, increase in surrenders & maturities by 9.4%, increase in policy acquisition costs by 38.7% and increase in G&A by 3.4%. This is despite the increase in NWP by 6.9% and decrease in net claims incurred by 41.1%. |
| Reasons of increase (decrease) for the period compared with same period last year |
The decrease in net profit is due to decrease in NWP by 1.9%, decrease in Fees and commission income by 26.4% (due to decrease in commission and surplus from Reinsurers) and decrease in investment income by 11.5% and a marginal increase in G&A by 1%. This is despite the decrease in net claims incurred by 18.2%, decrease in surrenders & maturities by 27.3% and decrease in policy acquisition costs by 19.9% . |
| Reasons of increase (decrease) for the quarter compared with the previous quarter |
The increase in net profit is due to increase in NWP by 14.3%, decrease in surrenders & maturities by 10.7%. This is despite the decrease in Fees and commission income by 6.8% (due to decrease in commission and surplus from Reinsurers), increase in policy acquisition costs by 7.9%, increase in G&A by 1.2%, decrease in investment income by 4.2% and increase in net claims incurred by 7%. |
| External auditor's report containing reservation |
The External Auditors Report stated the following Emphasis of Matter: We draw attention to Note 2 of the accompanying interim condensed financial information which states that subsequent to the period ended 30 September 2017, the Company received a letter from SAMA prohibiting the Company from accepting or renewing policies for protection and savings plans (major line of business) with effect from 3 October 2017 on account of certain non-compliance of relevant laws and regulations. Further, SAMA instructed the Company to appoint a consultant, discuss the matters in the Board of Directors meeting and required submission of a detailed report regarding the corrective actions taken or to be taken by management after approval from Board of Directors. On 3 October 2017, the Board of Directors held a meeting and thereafter recommended the appointment of an independent consultant, which was subsequently approved by SAMA, to work closely with management to address the matters raised by SAMA. The Company continues to take the necessary actions and believes that it will be able to resolve the matter at the earliest. The Companys other lines of business are continuing as normal. Our conclusion is not modified in respect of this matter. |
| Reclassifications in quarterly financial results |
Certain of the prior period amounts have been reclassified to conform with the presentation in the current period. These changes were made for better presentation of balances and transactions in the interim condensed financial statements of the Company. |
| Other notes |
The total Policyholders comprehensive loss during the quarter is SAR 82 thousand compared with a total comprehensive income of SAR 87 thousands for the same quarter previous year and a total comprehensive income of SAR 74 thousands for the previous quarter. The total Shareholders comprehensive income during the quarter is SAR 2,064 thousands compared with SAR 2,746 thousands for the same quarter previous year with a decrease of 24.8% and SAR 1,787 thousands for the previous quarter with an increase of 15.5%. The total Policyholders comprehensive income during the period is SAR 66 thousand compared with SAR 480 thousands for the same period previous year with a decrease of 86.3%. The total Shareholders comprehensive income during the period is SAR 5,967 thousands compared with SAR 9,340 thousands for the same period previous year with a decrease of 36.1%. The total shareholder's equity (no minority interest) during the current period is SAR 363,271 thousand, compared to SAR 360,058 thousand for the same period of prevouis year with an increase of 0.9%. Earnings Per share was calculated before Zakat and Income Tax. |
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