MetLife AIG ANB Cooperative Insurance Co. announces its interim Financial results for the period ending on 2019-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross written premiums (GWP) | 28,054 | 100,513 | -72.089 | 26,733 | 4.941 |
| Net written premiums (NWP) | 8,599 | 75,917 | -88.673 | 6,823 | 26.029 |
| Net incurred claims | -8,930 | -75,479 | -88.168 | -21,107 | -57.691 |
| Net profit (loss) of policy holders investment | 281 | 768 | -63.411 | 584 | -51.883 |
| Profit (Loss) Insurance Operations minus policy holders investments from operations | -7,975 | -17,121 | -53.419 | -9,275 | -14.016 |
| Net profit (loss) of shareholders capital investment | 988 | 1,162 | -14.974 | 1,091 | -9.44 |
| Net Profit (Loss) before Zakat | -7,198 | -15,590 | -53.829 | -8,180 | -12.004 |
| Total Comprehensive Income | -7,056 | -15,590 | -54.74 | -7,931 | -11.032 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after deducting minority equity) | 146,411 | 161,709 | -9.46 |
| Profit (Loss) per Share | -0.4 | -0.87 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| -33,980 | 180,000 | -18.88 |
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year | Net Losses before Zakat for the first quarter 2019 have decreased over the losses of first quarter 2018 by SR 8,392 thousand (53.83%) mainly due to:
1- improvement in net underwriting income by SR 9,530 thousand due to corrective measures taken by the Company during 2018 to strengthen the control over the claims processing function in addition to applying adequate pricing and underwriting strategy. 2- reduction in doubtful debt expense by SR 1,352 thousands; offset by 3- Increase in General and Administrative Expenses by SR 1,829 thousands, and 4- reduction in investment income from policyholders and shareholders together by SR 661 thousands. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter | Net Losses before Zakat for the first quarter 2019 have decreased over the fourth quarter 2018 by SR 982 thousand (12.00%) mainly due to:
1- reduction in doubtful debts expense by SR 4,843 thousands, 2- reduction in general and administration expense by SR 3,205 thousands; offset by 3- decrease in net underwriting income by SR 6,660 thousands due to reduction in business volumes and release of premium deficiency reserve in fourth quarter 2018 by SR 3,298 thousands while no reserves are built in first quarter 2019, 4- reduction in investment income from policyholders and shareholders together by SR 406 thousands. |
| Type of the external auditor's opinion | Emphasis of Matter paragraph |
| External auditor's report containing reservation | The external auditors draw attention to Note 2 to the interim condensed financial information, which indicates, among other things, that during 2018, the Company received a final warning letter from SAMA which highlighted various internal controls and risk management deficiencies among other things. However, to resolve all the deficiencies, Company developed an action plan and as of 31 March 2019, majority of the issues are already addressed, and the remaining are expected to be resolved within due course. Further, as of 31 March 2019 the Company’s accumulated losses are 18.88% (31 December 2018: 14.65%) of the share capital. These events and conditions indicate a material uncertainty on the Company’s ability to continue as a going concern. However, the Company’s management has made an assessment of its ability to continue as a going concern and is satisfied that the Company’s operations shall continue for the foreseeable future under normal course of the business. Our conclusion is not qualified in respect of this matter. |
| Reclassifications in quarter financial result | Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. |
| Additional Information | 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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