MetLife AIG ANB Cooperative Insurance Co. announces the interim financial results for the period ending on 31-03-2018 (Three Months)

10 May 2018 03:04 PM

METLIFE AIG ANB 8011 -7.74% 14.30 -1.20

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss) before Zakat	-15,590	-6,868	-126.99	-37,330	58.24
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)	-17,121	-8,197	-108.87	-38,851	55.93
Gross written premiums (GWP)	100,513	103,320	-2.72	60,523	66.07
Net written premiums (NWP)	75,917	87,661	-13.4	48,908	55.22
Net incurred claims	-75,479	-38,083	-98.2	-83,197	9.28
Net profit (loss) of policy holders investment	768	303	153.47	633	21.33
Net profit (loss) of shareholders capital investment	1,162	1,380	-15.8	1,364	-14.81
Earning or loss per share, Riyals	-0.45	-0.2	-	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for the quarter compared with same quarter last year	Net Losses before Zakat for the first quarter 2018 have increased over the first quarter 2017 by SR 8,722 thousand (126.99%) mainly due to: 1. decrease in net underwriting result for Health Insurance by SAR 14,562 thousand due to higher Net Claim Incurred, offset by: 2- reduction in doubtful debt expense by SR 2,717 thousand 3- reduction in General and Administrative Expenses by SR 1,862 thousand. 4- improvement in net underwriting result for other lines of business by SAR 1,195 thousand. 5. increase in investments returns for Policyholders' and Shareholders' operations together by SR 247 thousand.
Reasons of increase (decrease) for the quarter compared with the previous quarter	Net Losses before Zakat for the first quarter 2018 have decreased over the fourth quarter 2017 by SR 21,740 thousand (58.24%) mainly due to: 1- improvement in net underwriting result by SR 18,408 thousand mainly in Medical Insurance portfolio, 2- reduction in Doubtful debt expense by SAR 486 thousand, 3- reductions in general and administration expense by SAR 2,913 thousand.
External auditor's report containing reservation	External Auditors have drawn attention to Note 2 to the interim condensed financial information, which indicates that on 26 March 2018, the Company announced on Tadawul that as of February 28, 2018, its accumulated losses exceeded its share capital by 51.62%. Furthermore, as of 31 March 2018, the accumulated losses have exceeded 53.8% of its share capital. Accordingly, on 18 April 2018, in an Extraordinary General Assembly meeting, it was resolved to reduce the Company share capital by 48.57%, from SAR 350 million to SAR 180 million. To reflect the same, the Company will absorb SAR 170,000,000 of accumulated losses against reduction of its share capital by 17,000,000 shares to restructure Company share capital. The Company management made an assessment of its ability to continue as a going concern and is satisfied that it shall continue its operations in the foreseeable future and therefore, the financial statements have been prepared on a going concern basis. Accordingly, the External Auditor conclusion is not modified in respect of this matter.
Other notes	1- Total equity ( there is no minority interest ) as of end of the current period is SR 161,709 thousands versus SR 229,677 thousands for similar period of previous year with a decrease of 29.59%. 2- Total comprehensive losses after zakat for current quarter is SAR 16,070 thousands compared to SAR 7,408 thousands for same quarter last year with an increase of 116.92%. 3- Accumulated losses as at 30 September 2017 is SAR 188,291 thousand representing 53.80 % of share capital. 4- Basic and diluted loss per share for current period and similar period last year has been calculated by dividing the net loss for the period by the weighted average number of outstanding shares at the period end.

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