| Reasons of increase (decrease) for the quarter compared with same quarter last year |
The net loss for Q1 2018 amounting to SR 103,336K, compared to a net loss of SR 6,556K in Q1 2017, increased by SR 96,780K representing an increase of 1476%. The gross written premiums in Q1 2018 increased by SR38,193K representing an increase of 78%, compared to same quarter last year but the results were negatively effected by an increase of SR 99,347K in net claims incurred representing an increase of 506% in Q1 2018 on comparison to Q1 2017 due to an increase in technical reserves to meet the potential claims, as suggested by the actuary. |
| Reasons of increase (decrease) for the quarter compared with the previous quarter |
The net loss for Q1 2018 amounting to SR 103,336K, compared to a net loss of SR 4,729K in Q4 2017, increased by SR 98,607K representing an increase of 2085%. The gross written premiums in Q1 2018 decreased by SR12,966K representing a decrease of 13%, compared to previous quarter but the results were negatively effected by an increase of SR 70,900K in net claims incurred representing an increase of 147.5% in Q1 2018 on comparison to Q4 2017 due to an increase in technical reserves to meet the potential claims, as suggested by the actuary. |
| External auditor's report containing reservation |
The joint auditors interim review report on the interim condensed financial statements mentions that the interim condensed financial statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting IAS 34 as modified by SAMA for the accounting of Zakat and Income Tax. The joint auditors draw attention to note 4 to the accompanying interim condensed financial statements, which refers to the Companys accumulated losses at 31 March 2018 amounting to SR 149.01 million at that date 31 December 2017 SR 45.08 million. The Companys ability to continue as a going concern is dependent upon future profitable operations and continued financial support from shareholders in order to enable it to cover its losses and settle its liabilities. The accompanying interim condensed financial statements have been prepared on the assumption that the Company will continue in business as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. |
| Other notes |
1. Total comprehensive loss for the current quarter is SR 103,336 K compared to net loss of SR 6,556 K for the same quarter last year, an increase of 1476% and compared to net loss of SR 4,729 K in previous quarter, an increase of 2085%. 2. Total shareholders' equity (there is no minority interest) for the current period reached SAR 50,992 K compared to SAR 164,491 K for the same period last year, a decrease of 69%. 3. Total accumulated losses amounted to SR 149,008 K, representing 74.5% of capital. The losses are mainly due to the increase in technical reserves recommended by actuary to meet the potential claims. The Company announces that it will implement the procedures and instructions issued by the Capital Market Authority related to listed companies, the accumulated losses of which have amounted to more than 20% of its paid-up Capital, as per the Capital Market Authority Boards resolution no. 1-130-2016 dated 23/01/1438H corresponding to 24/10/2016. |
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