| Reasons of increase (decrease) for the quarter compared with same quarter last year |
The net loss is due to decrease in Gross written premiums (as a result of the prohibition of issuing or renewing Protection & Savings policies as announced in 3 October 2017) and increase in the technical reserves. This contributed to the decrease of the NWP by 25.7% and decrease in Underwriting revenue by 50%. Also, G&A increased by 17% and investment income decreased by 26.5%. This is despite the decrease in surrenders & maturities by 26.2%, decrease in policy acquisition costs by 27.8% and decrease in net claims incurred by 10%. |
| Reasons of increase (decrease) for the period compared with same period last year |
The net loss is due to decrease in Gross written premiums (as a result of the prohibition of issuing or renewing Protection & Savings policies as announced in 3 October 2017) and increase in the technical reserves. This contributed to the decrease of the NWP by 8.6% and decrease in Underwriting revenue by 28%. Also, G&A increased by 5%, fees and commission income decreased by 22.2% and investment income decreased by 15.8%. This is despite the decrease in surrenders & maturities by 27%, decrease in policy acquisition costs by 22% and decrease in net claims incurred by 16%. |
| Reasons of increase (decrease) for the quarter compared with the previous quarter |
The net loss is due to decrease in Gross written premiums (as a result of the prohibition of issuing or renewing Protection & Savings policies as announced in 3 October 2017) and increase in the technical reserves. This contributed to the decrease of the NWP by 15.5% and decrease in Underwriting revenue by 44.6%. Also, G&A increased by 9.7%, fees and commission income decreased by 30% and net claims incurred increased by 32.4%. This is despite the decrease in surrenders & maturities by 15.7%, decrease in policy acquisition costs by 15.1% and increase in investment income by 6%. |
| 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 during the three-month period ended 31 December 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 submit a detailed report regarding the corrective actions taken or to be taken by management after approval from the 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 approved by SAMA, to work closely with management to address the matters raised by SAMA. The Company has kept SAMA informed of its progress and continues to take the necessary actions and believes that it will be able to fully 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 241 thousand compared with a total comprehensive income of SAR 16 thousands for the same quarter previous year and a total comprehensive loss of SAR 82 thousands for the previous quarter with an increase of 194%. The total Shareholders comprehensive loss during the quarter is SAR 11,452 thousands compared with a total comprehensive income of SAR 2,515 thousands for the same quarter previous year and SAR 2,064 thousands for the previous quarter. The total Policyholders comprehensive loss during the period is SAR 175 thousand compared with a total comprehensive income of SAR 496 thousands for the same period previous year. The total Shareholders comprehensive loss during the period is SAR 5,485 thousands compared with a total comprehensive income of SAR 11,855 thousands for the same period previous year. The total shareholder's equity (no minority interest) during the current period is SAR 351,302 thousand, compared to SAR 361,201 thousand for the same period of prevouis year with a decrease of 2.7%. Earnings Per share was calculated before Zakat and Income Tax. |
Comments