Saudi Enaya Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2019-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross Written Premiums (GWP) | 39,043 | 50,673 | -22.951 | 25,197 | 54.95 |
| Net Written Premiums (NWP) | 39,043 | 36,483 | 7.016 | 25,197 | 54.95 |
| Net Incurred Claims | 26,185 | 46,718 | -43.95 | 25,788 | 1.539 |
| Net Profit (Loss) of Policy Holders Investment | - | - | - | - | - |
| Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) | -28,428 | 23,720 | - | -19,276 | 47.478 |
| Net Profit (loss) of Shareholders Capital Investment | 1,855 | 976 | 90.061 | 1,877 | -1.172 |
| Net Profit (Loss) before Zakat | -27,705 | 23,424 | - | -17,609 | 57.334 |
| Total Comprehensive Income | -28,305 | 22,824 | - | -18,209 | 55.445 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Gross Written Premiums (GWP) | 64,240 | 137,861 | -53.402 |
| Net Written Premiums (NWP) | 64,240 | 119,444 | -46.217 |
| Net Incurred Claims | 51,973 | 165,198 | -68.538 |
| Net Profit (Loss) of Policy Holders Investment | - | - | - |
| Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) | -47,704 | -80,240 | -40.548 |
| Net Profit (loss) of Shareholders Capital Investment | 3,732 | 1,901 | 96.317 |
| Net Profit (Loss) before Zakat | -45,314 | -79,913 | -43.295 |
| Total Comprehensive Income | -46,514 | -81,113 | -42.655 |
| Total Share Holders Equity (after Deducting Minority Equity) | 208,778 | 55,292 | 277.591 |
| Profit (Loss) per Share | -1.61 | -5.18 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| -91,222 | 300,000 | 30.4 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | 'The net loss for Q2 2019 amounting to SR 27,705K, compared to a net profit of SR 23,424K in Q2 2018, has deteriorated by SR 51,129K representing 218% primarily due to significant decrease in gross written premium and net earned premium.
The gross written premium decreased by SR 11,630K, representing 23% decrease (Q2 2019: SR 39,043K, Q2 2018: SR 50,673K) and net earned premium decreased by SR 50,471K, representing 77% decrease (Q2 2019: SR 15,336K, Q2 2018: SR 65,807K). The reason for this significant decrease in earned premium is due to the unfavorable movement of unearned premium reserve in Q2 2019 by SR 23,707K compared to a favorable movement in unearned premium reserve in Q2 2018 by SR 29,324K. Net claims incurred decreased by SR 20,533K, representing 44% decrease (Q2 2019: SR 26,185K, Q2 2018: SR 46,718K) but the total underwriting costs and expenses have increased in Q2 2019 by SR 4,520K, representing 16% increase (Q2 2019: SR 33,090K, Q2 2018: SR 28,570K). |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | 'The net loss for Q2 2019 amounting to SR 27,705K, compared to a net loss of SR 17,609K in Q1 2019, showing an increase of SR 10,096K representing 57% increase. Although there is an increase in gross written premium in Q2 2019 by SR 13,846K, representing 54%, (Q2 2019: SR 39,043K, Q1 2019: SR 25,197K) but
this improvement was offset by decrease in net earned premium by SR 5,617K, representing 27% (Q2 2019: 15,336K, Q1 2019: 20,953K) and increase in total underwriting cost and expenses in Q2 2019 compared to Q1 2019 by SR 3,571K, representing 12% increase (Q2 2019: SR 33,090K, Q1 2019: SR 29,519K). |
| Increase (Decrease) in Net Profit for Current Period Compared to the Same Period of the Previous Year is Attributed to | 'The net loss for six months ended 30 June 2019 amounting to SR 45,314K, compared to a net loss of SR 79,913K for same period of 2018, improved by SR 34,599K, representing 43% improvement.
Although there is a decrease in gross written premium for the six months period ended 30 Jun 2019 by SR 73,621K, representing 53% decrease and decrease in net earned premium by SR 103,040K, representing 74% decrease (six months period ended 30 Jun 2019: SR 36,289K, six months period ended 30 Jun 2018: SR 139,329K), compared to the six months period ended 30 Jun 2018 but this decrease was offset by significant decrease in total underwriting cost and expenses in six months period ended 30 Jun 2019 by SR 125,954K, representing 67% decrease (six months period ended 30 Jun 2019: SR 62,609K , six months period ended 30 Jun 2018: SR 188,563K). Moreover the provision for bad debts also decreased by SR 8,280K, representing 156%, in six months period ended 30 Jun 2019 compared to the same period of 2018 (2019: SR 2,963K reversal, 2018: SR 5,317K increase). |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | 'The joint independent auditors report on review of Interim Condensed Financial Statements states that the financial statements have been prepared in accordance with International Accounting Standard 34 - "Interim Financial Reporting" (IAS 34) as endorsed in the Kingdom of Saudi Arabia. |
| Reclassification of Comparison Items | 'Certain prior period amounts have been reclassified for consistency with the current period presentation. These re classifications had no effect on the reported results of operations |
| Additional Information | '1. Total comprehensive loss for the current quarter is SR 28,305K compared to a profit of SR 22,824K for the same quarter last year, an deterioration of 224% and compared to net loss of SR 18,209K in previous quarter, a deterioration of 55%.
2. Total comprehensive loss for the current six months ended 30 Jun 2019 is SR 46,514K compared to a loss of SR 81,113K for the same period last year, representing a decrease in losses by 43%.
3. Total shareholders' equity (there is no minority interest) for the six months period ended 30 Jun 2019 reached SR 208,778K compared to SR 55,292K for the same period last year, an increase of 277% and compared to total shareholders' equity of SR 237,083K at the end of previous quarter, a decrease of 12%. The reason for increase in shareholders equity is that Company issued SR 200M through rights issue and the capital was deposited on 16 January 2019.
4. Total accumulated losses as at 30 Jun 2019 amounted to SR 91,222K, representing 30.4% of share capital. Total accumulated losses at the end of current quarter is SR 91,222K compared to total accumulated losses of SR 26,185K at the end of same quarter last year, a deterioration of 248%. and compared to total accumulated losses of SR 62,917K at the end of previous quarter, a deterioration of 45%.
5. Earning per share (EPS) for the current quarter ended 30 Jun 2019 is SR (0.98) per share versus SR 1.46 per share (restated) for the same quarter last year, deterioration of 167%.EPS for six months period ended 30 Jun 2019 is SR (1.61) per share versus SR (5.18) per share (restated) for same period last year, improvement of 69%.
Earning per share (EPS) for the current quarter and six months period ended 30 Jun 2019 is based on 28,813K weighted average number of outstanding shares. EPS for the quarter ended 30 Jun 2018 and six months period ended 30 Jun 2018 is based on 15,673K weighted average number of outstanding shares (restated). The improvement in EPS for the six months period ended 30 Jun 2019 compared to same period last year is due to decrease in losses (2019: SR 46,514K , 2018: SR 81,113K) and increase in weighted average number of outstanding shares (2019: 28,813K shares, 2018: 15,673K -restated). |
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