Alinma Tokio Marine 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) | 134,934 | 142,059 | -5.015 | 44,924 | 200.36 |
| Net written premiums (NWP) | 80,639 | 109,312 | -26.23 | 21,622 | 272.948 |
| Net incurred claims | -29,450 | -36,584 | -19.5 | -47,884 | -38.497 |
| Net profit (loss) of policy holders investment | 1,249 | 599 | 108.514 | 428 | 191.822 |
| Profit (Loss) Insurance Operations minus policy holders investments from operations | -10,447 | -6,848 | 52.555 | -13,916 | -24.928 |
| Net profit (loss) of shareholders capital investment | 2,940 | 3,048 | -3.543 | 1,108 | 165.342 |
| Net Profit (Loss) before Zakat | -7,140 | -4,352 | 64.062 | -13,359 | -46.552 |
| Total Comprehensive Income | -7,212 | -4,628 | 55.834 | -13,341 | -45.941 |
| 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) | 236,736 | 277,071 | -14.557 |
| Profit (Loss) per Share | -0.24 | -0.15 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 62,563 | 300,000 | 20.85 |
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year | Increase in net loss for the current quarter compared with the same quarter of last year is due to
Gross written premium lower by 5.02%, lower reinsurance commission earned by 2.73%, higher policy acquisition cost by 16.04%, higher general and administrative expenses by 2.24% and higher provision for doubtful receivables by SAR 2.1M. This increase in loss is partly offset by decrease in net claims incurred by 19.50% and overall investment income increase by 14.86%. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter | Decrease in net loss for the current quarter compared with the previous quarter is due to
Net written premium higher by 272.95%, lower net claims incurred by 38.50%, higher overall investment income by 172.72% and lower provision for doubtful receivables by SAR 1.86M. This decrease in loss is partly offset by decrease in reinsurance commission income by 16.80%. |
| Type of the external auditor's opinion | Unmodified opinion |
| External auditor's report containing reservation | The joint independent auditors report on the annual financial statements states that the financial statements have been prepared in accordance with International Financial Reporting Standards IFRS as modified by the Saudi Arabian Monetary Authority (SAMA) for the accounting of zakat and income tax. |
| Reclassifications in quarter financial result | Some of the last year numbers have been reclassified for presentation purposes. |
| Additional Information | The company has adopted IFRS 16 from 1 January 2019 but has not restated comparatives for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening balance sheet on 1 January 2019.
On adoption of IFRS 16, the company recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 January 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 4%. As of January 1, 2019 Rights of use assets has been booked amounting to SAR 7.35M and operating lease liability amounting to SAR 6.6M. Also, in relation those leases under IFRS 16, the Company has recognized Depreciation and interest costs, instead of operating lease expense. During three month ended 31 March 2019, the Company recognized SAR 0.3 million of depreciation charge and SAR 0.065 million of interest costs from these leases and derecognized an operating lease charge of SAR 0.35 million. As at 31 March 2019. the carrying amount of right-of-use assets amounted to SAR 7.04 million with SAR 6.3 million recognized in lease liabilities. • The Shareholders’ Equity for the current year is SAR 236,736 thousand, compared to SAR 277,071 thousand for the same period last year, with a decrease of 14.56%.
Total comprehensive loss for the period is SAR 7,212 thousand, which is an increase of 55.83% compared to same period last year, where we reported a loss of SAR 4,628 thousand.
The accumulated losses as at 31 March 2019 amounted to SAR 62,563 thousand which is 20.85% of the share capital. Reasons for the losses: The main reasons for the accumulated losses reached this regulatory limit is high expense ratio. ATMC has invested in its operational efficiency and infrastructure which has led to increased expense base. The corresponding increase in revenue has not been achieved as yet.
The procedures and instructions of Capital Market Authority will be applied related to listed companies with accumulated losses reaching 20% or more of their share capital.
Loss per share for the period ended 31 March 2019 is 0.24, which is an increase of 60% as compared to same period last year. |
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