Al-Rajhi Company for Cooperative Insurance announces the annual financial results for the period ending on 31-12-2017

28 March 2018 07:47 AM

ALRAJHI TAKAFUL 8230 92.98% 137.40 66.20

Element	Current year	Previous year	% Change
Net profit (loss) before Zakat	182,870	99,027	84.67
Earning or loss per share, Riyals	4.57	2.48	-
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	156,001	65,368	138.65
Gross written premiums (GWP)	3,193,474	1,948,650	63.88
Net written premiums (NWP)	3,073,018	1,856,353	65.54
Net incurred claims	2,345,712	1,284,885	82.56
Net profit (loss) of policy holders investment	33,007	21,786	51.51
Net profit (loss) of shareholders capital investment	10,635	18,804	-43.44
Pre operating expenses (first operation year)	-	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The increase in Profit Before Zakat is due to an increase in the Company's underlying business volumes. Gross Contributions Written increased by 63.88%, Net Contributions Earned increased by 81.45%. As a result, net underwriting surplus increased by 138.65%, Policyholder Investment Income increased by 51.51% while Shareholders Investment Income decreased by 43.44% as we have adopted IFRS 9 in preparing the 2017 financial statements and reclassified investment in equity shares to financial assets at fair value through other comprehensive income. Consequently, the movement in fair value of equity investments are reported through other comprehensive income, (Fair Value change in equity investments was SR 4,733 thousand in 2016), This positive result was offset, in part, by an increase 28.32% in General & Administration expenses.
Reclassifications in annual financial results	The comparative amounts of previous periods have been reclassified to match with the current presentation. The company hereby confirms that there are no classification changes in the net underwriting surplus or net profit before Zakat.
Other notes	Comprehensive income of Takaful Operations for the year 2017 is SAR 18,900 thousand versus SAR 8,789 thousand for the year 2016, or an increase of 115.05%. Comprehensive income of Shareholders' Operation for the year 2017 is SAR 184,422 thousand versus SAR 99,268 thousand for the year 2016, or an increase of 85.79%. The total Shareholder's Equity (no minority interest) for the current period is SAR 598,060 thousand compared to SAR 429,363 thousand for the same period of the previous year, or an increase of 39.29%. Profit per share for the period was calculated based on the Profit before Zakat.

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