Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)
-38,851
-8,322
-366.85
-12,022
-223.17
Gross written premiums (GWP)
60,523
60,144
0.63
103,053
-41.27
Net written premiums (NWP)
48,908
49,510
-1.22
89,105
-45.11
Net incurred claims
-83,197
-33,356
-149.42
-65,965
-26.12
Net profit (loss) of policy holders investment
634
440
44.09
599
5.84
Net profit (loss) of shareholders capital investment
1,364
1,848
-26.19
1,371
-0.51
All figures are in (Thousands) Saudi Arabia, Riyals
Element
Current period
Similar period for previous year
% Change
Net profit (loss) before Zakat
-57,806
-21,855
-164.5
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)
-63,587
-27,764
-129.03
Gross written premiums (GWP)
354,880
208,090
70.54
Net written premiums (NWP)
288,791
148,924
93.92
Net incurred claims
-229,079
-124,012
-84.72
Net profit (loss) of policy holders investment
2,014
1,445
39.38
Net profit (loss) of shareholders capital investment
5,498
5,875
-6.42
Earning or loss per share, Riyals
-1.65
-0.64
-
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 fourth quarter 2017 have increased over the fourth quarter 2016 by SR 30,954 thousand (485.52%) mainly due to: 1- decrease in net underwriting result for Health Insurance by SAR 32,137 thousands due to higher Net Claim Incurred for Health Insurance in addition to the composition of additional Premium Deficiency Reserve in Q4 2017. 2- increase in General and Administrative Expenses by SR 1,627 thousand for both insurance operations and shareholders together, offset by: 3- Improvement in net underwriting result for other lines of business by SAR 3,100 thousands.
Reasons of increase (decrease) for the period compared with same period last year
Net Losses before Zakat for the period ended 2017 have increased over the same period 2016 by SR 35,951 thousand (164.49%) mainly due to: 1- decrease in net underwriting result for Health Insurance by SAR 37,022 thousands due to higher Net Claim Incurred for Health Insurance in addition to the composition of additional Premium Deficiency Reserve in Q4 2017. 2- increase in General and Administrative Expenses by SR 4,294 thousand for both insurance operations and shareholders together, offset by: 3- Improvement in net underwriting result for other lines of business by SAR 5,173 thousands.
Reasons of increase (decrease) for the quarter compared with the previous quarter
Net Losses before Zakat for the fourth quarter 2017 have increased over the previous quarter by SR 26,964 thousand (260.11%) mainly due to: 1- decrease in net underwriting result for Health Insurance by SAR 24,993 thousands due to higher Net Claim Incurred for Health Insurance in addition to the composition of additional Premium Deficiency Reserve in Q4 2017. 2- increase in General and Administrative Expenses by SR 2,998 thousand for both insurance operations and shareholders together, offset by: 3- Improvement in net underwriting result for other lines of business by SAR 1,000 thousands.
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 31 December 2017. The weighted average number of ordinary shares for the same period 2016 was 33,924,180 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 of end of the current period is SR 177,779 thousands versus SR 237,085 thousands for similar period of previous year with a decrease of 25.01%. 3- Total comprehensive losses after zakat for current quarter is SAR 37,210 thousands compared to SAR 6,642 thousands for same quarter last year with an increase of 460.22%, and compared to SAR 10,906 thousand in previous quarter which represents an increase in losses by 241.19%. The comprehensive loses for the period is SAR 59,306 thousand compared to SAR 22,245 thousand for the previous period last year with increase of 166.60% 4- Accumulated losses as at 31 December 2017 is SAR 172,221 thousand representing 49.21 % of share capital. 5- Reference to the company s disclosure dated Jan 28 2018 relating to unexpected losses in Q4 of 2017 in connection with its medical business in an approximate percentage of 15% of net assets of the company, the said losses in principle are mainly attributed to large and accumulated claims which did not reach to the attention of the company in a timely manner, which resulted in inadequate pricing and technical underwriting which had a direct impact on the increase in the loss ratio of medical insurance portfolio and an unplanned premium deficiency reserve of SAR 9,945 thousands to account for such claims in the future. This has negatively impacted the financial results of the company particularly Q4 2017. The company is still assessing the causes of this loss and will take all necessary actions to rectify the causes and preventing the same from happening again in the future. It is worth-mentioning the loss is neither connected with one policy nor with any policies issued for any related party of the company.
Comments