| Reasons of increase (decrease) for the quarter compared with same quarter last year |
The company reported decrease net profit for the fourth quarter of 2017 amounting to 13,100 thousand riyals compared to the net profit of same quarter of last year amounting to 17,358 thousand riyals, the decrease in net profit is due to decrease in Gross written premium by 8,498 thousand riyals, increase in Net claims paid by 12,938 thousand riyals, increase in General and administrative expenses by 4,305 thousand riyals and increase in Operating and administrative salaries by 2,337 thousand riyals, which are partly offset by increase in Reinsurance commission income by 14,564 thousand riyals, increase in Reinsurance share of paid claims by 8,627 thousand riyals and increase in Shareholders investments income by 84 thousand riyals. |
| Reasons of increase (decrease) for the period compared with same period last year |
The company reported the reason for increase of net profit for the 12 months ended Dec 31, 2017 amounting to 27,473 thousand riyals compared to the net profit of same period of last year amounting to 22,334 thousand riyals, the increase in net profit is due to increase in Gross written premium by 82,252 thousand riyals, increase in Reinsurance share of paid claims by 40,972 thousand riyals increase in Reinsurance commission income by 14,529 thousand riyals and increase in Policyholders investments income by 2,042 thousand riyals which are partly offset by increase in Gross claims paid by 87,447 thousand riyals, increase in Policy acquisition cost by 14,169 thousand riyals, increase in Operating and administrative salaries by 5,385 thousand riyals and decrease in Shareholders investments income by 8 thousand riyals. |
| Reasons of increase (decrease) for the quarter compared with the previous quarter |
The company reported the reason for increase of net profit for the fourth quarter of 2017 amounting to 13,100 thousand riyals compared to the net profit of the third quarter of the year 2017 amounting to 2,009 thousand riyals, the increase in net profit is due to increase in Gross written premium by 55,024 thousand riyals, increase in Reinsurance commission income by 17,175 thousand riyals, decrease in General and administrative expenses by 1,997 thousand riyals and increase in Shareholders investments income by 577 thousand riyals. which are partly offset by increase in Reinsurance premium ceded by 15,711 thousand riyals, increase in Net claims incurred by 3,158 thousand riyals, increase in Policy acquisition cost by 1,242 thousand riyals increase in Operating and administrative salaries by 3,427 thousand riyals, increase in Shareholders general and administrative expenses by 1,800 thousand riyals and decrease in Policyholders investments income by 785 thousand riyals. |
| External auditor's report containing reservation |
External Auditors drew attention in their limited review report to the following, note 3 and 7(b) to the accompanying condensed interim financial statements; the Company has an outstanding net receivable of SR14.76 million from Gulf Union Insurance and Projects Management Holding Company B.S.C. (c.) (GUIPMC), a major shareholder of the Company. The net receivable has not been settled till the balance sheet date. GUIPMC is considering sale of its shareholding in the Company to settle the net balance and has received necessary approval of the regulators for sale of such shares. GUIPMC is in the process of deciding appropriate course of action for the sale of shares. Accordingly, the Companys management believes that such amount will be collected in the due course. Our conclusion is not qualified in respect of this matter. |
| Other notes |
Earnings per share has been changed after reducing the companys capital Due to capital reduction number of shares in current quarter decrease to 150 Million from 220 Million as the same quarter last year. General assembly meeting was held on 18/5/2017 which they agree on capital reduction. Total shareholders equity (there are no minority rights) as at 31 Dec 2017 was 168,190 thousand riyals compared to 146,561 thousand riyals for same period of last year, an increase of 14.8%.The retained earnings as at the end of the current period are 13,382 thousand riyals which is 9% of the paid up capital compared to the same period of last year accumulated losses 73,615 thousand riyals and for the previous quarter retained earning amounting 4,216 thousand riyals. The total comprehensive income for the current period is 27,669 thousand riyals, compared to total comprehensive income 22,629 thousand riyals for the same period last year, an increase of 22%, The total comprehensive income for the current quarter is 13,209 thousand riyals, compared to total comprehensive income 17,288 thousand riyals for the same quarter last year, a decrease of 24%, compared to 1,942 thousand riyals for the previous quarter which represents a increase of 580%. |
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