Salama Cooperative Insurance Co. announces the annual financial results of the period ending on 31-12-2017
| Element | Current year | Previous year | % Change |
|---|---|---|---|
| Net profit (loss) before Zakat | 65,492 | 30,350 | 115.79 |
| Earning or loss per share, Riyals | 2.62 | 1.21 | - |
| Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) | 61,864 | 23,802 | 159.91 |
| Gross written premiums (GWP) | 750,691 | 571,353 | 31.39 |
| Net written premiums (NWP) | 712,826 | 543,098 | 31.25 |
| Net incurred claims | 497,888 | 329,961 | 50.89 |
| Net profit (loss) of policy holders investment | 7,394 | 5,968 | 23.89 |
| Net profit (loss) of shareholders capital investment | 4,618 | 4,176 | 10.58 |
| Pre operating expenses (first operation year) | - | - | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of annual financial results | The reason for increase in profit in current period compared to same period previous year is due to increase in net earned premium by 56% and increase in total investment income from policyholder and shareholders' fund by 18% partly offset by increase in net claims incurred by 51% and increase in general and administration expenses and provision for doubtful debts in aggregate by 35%. |
| Reclassifications in annual financial results | In accordance with SAMA circular dated 11/04/2017 with respect to the Accounting of Zakat and Income Tax policy effective 01/01/2017, an adjustment was carried out to the net income, total comprehensive income and earnings per share for the period ended 31/12/2016 as a result of the Zakat restatement from Statement of Shareholders' Operations to the Statement of Changes in Shareholders' Equity. There was no effect on the Total Shareholders' Equity as of 31/12/2016 due to this adjustment (Please refer to notes 2d and 25 in the notes to the financial statements). |
| Other notes | 1. Total comprehensive income for the current year is SR 65,492 thousand compared to SR 30,350 thousand for the same period last year, an increase of 116%. 2. The retained earnings as at the end of 31/12/2017 is SR 634 thousands which is 0.3% of the paid up capital. 3. Total shareholders' equity (there is no minority interest) for the current period reached SAR 252,368 thousand compared to SAR 193,176 thousand for the same period last year, an increase of 31%. 4. Subsequent to announcement dated 11-02-2018 for the interim financial results for the period ending on 31-12-2017, the company received updated valuation report from appointed actuary which resulted in net increase in the technical reserves by SR 2.25 million as announced on 19-03-2018. Due to this, these figures were changed from our previous announcement of 12 months results for period ending on 31-12-2017. Net profit before zakat for the year 2017 changed from SR 67,516 thousand to 65,492 thousand. Surplus of insurance transactions less returns of policy holders investment for the year 2017 changed from SR 64,112 thousand to SR 61,864 thousand. Earnings per share for the year 2017 changed from SR 2.70 to SR 2.62. Total comprehensive income for the year 2017 changed from SR 67,516 thousand to 65,492 thousand. Total shareholders' equity as at 31-12-2017 changed from SR 254,392 thousand to SR 252,368 thousand. |
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