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Salama Cooperative Insurance Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

SALAMA 8050 -13.27% 29.75 -4.55
Element List Current Year Previous Year %Change
Gross Written Premiums (GWP) 427,623 503,504 -15.07
Net Written Premiums (NWP) 359,964 437,864 -17.79
Net Incurred Claims 280,402 431,516 -35.019
Net Profit (Loss) of Policy Holders Investment 9,887 3,233 205.815
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) -3,751 -66,496 -94.359
Net Profit (loss) of Shareholders Capital Investment 5,995 10,086 -40.561
Net Profit (Loss) before Zakat 9,702 -54,115 -
Total Comprehensive Income 4,450 -61,994 -
Total Share Holders Equity (after Deducting Minority Equity) 206,297 202,596 1.826
Perpetrating Expenses (First Operation Year) - - -
Profit (Loss) per Share 0.15 -2.4
All figures are in (Thousands) Saudi Arabia, Riyals
Element List Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is The reason for increase in net Profit in current year compared to losses same previous year is mainly due to decrease in net incurred claims by 35%, increase in policy holders investment by 206% , Increase in other Underwriting Income by 156% and partly offset by decrease in earned premium (NEP) by 26% and decrease in Share Holders investment Income by 40.5%.
Statement of the type of external auditor's report Qualified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion The Company has 15.1 Million in other receivables balance as of December 31, 2020, which represents accounting system processing differences related to the insurance operations due to the difficulties in the implementation of new IT system (SAP system finance integration) - Note 10 in FS.

The management believes that the financial statements were prepared on the assumption of continuity and resolving technical and programmatic matters during the second quarter of 2021

Reclassification of Comparison Items Certain comparative figures have been reclassified to conform to the presentation of the current period. These changes have been made to better reflect the balances and transactions in the financial statements of the Company. This adjustments did not have any significant impact on the comparative statement of income and statement of changes in equity. Note:34
Additional Information The profit per share (PPS) for the current year is SR 0.15 per share versus losses SR (2.40) per share for the same last year by dividing the net profit attributed to shareholders after zakat and income tax amount of SR 3,702 thousand over the weighted average number of ordinary outstanding shares of 25,000 thousand for the current year and SR (60,114) thousand over 25,000 thousand for the same of the last year

The total shareholders` equity (no minority interest) at current period is SR 206,298 thousand compared to SR 202,596 thousand (after deducting minority interest) during the same period of the previous year, an increase of 1.83%.

The accumulated losses has reached SR (48,705) thousand for the period ended 31 December 2020, which consist of 19.48% of the paid capital amounting to SR 250,000 thousand.

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