Solidarity Saudi Takaful Co. announces its Interim Financial Results for the Period Ending on 2020-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross Written Premiums (GWP) | 77,910 | 76,022 | 2.483 | 118,873 | -34.459 |
| Net Written Premiums (NWP) | 74,706 | 71,791 | 4.06 | 115,221 | -35.162 |
| Net Incurred Claims | 70,919 | 61,998 | 14.389 | 77,912 | -8.975 |
| Net Profit (Loss) of Policy Holders Investment | - | - | - | - | - |
| Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) | -27,105 | -27,227 | -0.448 | 9,469 | - |
| Net Profit (loss) of Shareholders Capital Investment | 1,987 | 2,253 | -11.806 | 2,169 | -8.39 |
| Net Profit (Loss) before Zakat | -26,630 | -26,533 | 0.365 | 9,915 | - |
| Total Comprehensive Income | -21,704 | -27,110 | -19.94 | 5,639 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Gross Written Premiums (GWP) | 196,783 | 154,003 | 27.778 |
| Net Written Premiums (NWP) | 189,927 | 143,087 | 32.735 |
| Net Incurred Claims | 148,832 | 96,525 | 54.19 |
| Net Profit (Loss) of Policy Holders Investment | - | - | - |
| Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) | -17,636 | -24,742 | -28.72 |
| Net Profit (loss) of Shareholders Capital Investment | 4,156 | 4,732 | -12.172 |
| Net Profit (Loss) before Zakat | -15,768 | -20,603 | -23.467 |
| Total Comprehensive Income | -16,065 | -18,277 | -12.102 |
| Total Share Holders Equity (after Deducting Minority Equity) | 194,274 | 232,504 | -16.442 |
| Profit (Loss) per Share | -0.66 | -0.73 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| -65,375 | 250,000 | -26.15 | |
| 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 | There is no increase or decrease in the Net loss for the current quarter as compared to the same quarter previous year are due to the following reasons: 1) Due to increase in the net incurred claims by 14%.
2) due to decrease in the shareholders investment income by 12%.
3) due to additional PDR for 2-months extension of motor retails policy provided by external actuary SAR 31.23M.
The above three reasons has offset the increase of earned premium by 71% and the increase of other underwriting income by 354%. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The reason for the net loss for the current quarter as compared to the net profit in the previous quarter is due to decrease in GWP by 34% and due to additional PDR for 2-months extension of Motor retail policy as recommended by external actuary. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Same Period of the Previous Year is Attributed to | The reason of decrease in the Net loss for the current period as compared to the same period previous year is due to increase in the GWP by 28% and increase in other underwriting income by 83%. |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | "Unaudited interim condensed Financial Statements for prior periods were 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, which have been accrued on a quarterly basis through shareholders’ equity under retained earnings in accordance with SAMA Circular No. 381000074519 dated 11 April 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”). The above basis has been amended and zakat and income tax are now charged to the statement of income.
The Financial Statements have therefore been prepared in accordance with International Accounting Standard 34 endorsed in the Kingdom of Saudi Arabia, consistent with the Company’s accounting policies. Comparatives have been restated. |
| Reclassification of Comparison Items | The compared figures of previous period had been reclassified to match with current presentation. |
| Additional Information | 1. Loss / Earning per share for the period was calculated after Zakat and Income Tax (following the amendment in presentation of Zakat and Income Tax from Statement of Changes in Equity to Statement of Income). Loss per Share (EPS) for the current period is calculated on weighted average number of shares (25Million).
2. Total Shareholders’ Equity by end of the current period is SAR 194,274 thousand compared to SAR 232,504 thousand for the same period of previous year, decreased by 16.44% (No minority interest).The accumulated losses for the end of current period is SAR (65,375) thousands which is (26.15%) of the paid up capital.
3.Total Comprehensive loss for the current quarter is SR (21,704) thousand compared to SR (27,110) thousand for the same quarter previous year, decreased by 20% and an income of SR 5,639 thousand as compared to previous quarter.
4. The accumulated losses for the end of current period is SAR (65,375) thousands which is (26.15%) of the paid up capital. The main reasons for the accumulated losses reached this regulatory limit is due to increase in special technical reserves as recommended by the Appointed External Actuary.
Solidarity believe that due to special nature of these technical reserves which is one-off time and as they would be release in due course of time which help in decreasing the accumulated losses.
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. |
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