Saudi Indian Company for Cooperative Insurance announces its Annual Financial Results for the Period Ending on 2019-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Gross Written Premiums (GWP) | -2.222 | 110.16 | - | ||
| Net Written Premiums (NWP) | -127 | 60.857 | - | ||
| Net Incurred Claims | 15.287 | -202.334 | - | ||
| Net Profit (Loss) of Policy Holders Investment | - | 2.274 | -100 | ||
| Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) | -31.338 | -157.736 | -80.132 | ||
| Net Profit (loss) of Shareholders Capital Investment | - | 83 | -100 | ||
| Net Profit (Loss) before Zakat | -32.677 | -157.957 | -79.312 | ||
| Total Comprehensive Income | -34.509 | -158.153 | -78.179 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | -107.919 | -73.41 | 47.008 | ||
| Perpetrating Expenses (First Operation Year) | - | - | - | ||
| Profit (Loss) per Share | -3.46 | -15.9 | |||
| 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 decrease in net loss in the current year compared to last year is due to cost cuts with reduced claims resulting in much lower underwriting costs, lower allowance for doubtful debts and lower general and administrative expenses. However, there is lower revenue as well with a decrease in Gross Premiums Written by 102% and decrease in Net Premiums Written by 100.2%. Overall affects are majorly due to suspension of business in May 2018. |
| 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 | • In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2019.
• Note 2.2 to the accompanying financial statements which describe reasons for the preparation of the financial statements of the Company on a non-going concern basis. Accordingly, these financial statements have been prepared on liquidation basis i.e. assets and liabilities has been stated on expected realizable and settlement values respectively except for property and equipment and intangibles whose carrying values have been considered by management as approximating their fair values. • Note 32 to the accompanying financial statements, which describes that the Company has filed a case for recovery of SR 2.8 million with respect to the rent paid and expenditure incurred on renovation and improvement to a property. The amount is included in ‘Prepayments and other assets’. The ultimate outcome of the case is pending on the final decision from the court and cannot be determined at this stage. • Note 7 to the accompanying financial statements, which include reinsurance receivables of SR 7.7 million for which the Company does not have underlying records. Management is currently investigating the balance and its recoverability. However, the Company has booked total amount of provision against the balance. |
| Reclassification of Comparison Items | The comparative figures of previous period have been rearranged / reclassified to match with the current presentation. |
| Additional Information | Basic and diluted earnings per share have been computed by dividing the net income before Zakat and income tax for the relevant years by the weighted average number of issued outstanding shares. The relevant averages are 100,000,000 for the year ended Dec 31, 2019 and 100,000,000 for the year ended Dec 31, 2018. The total comprehensive loss for the year is SAR 34.51 million, compared to comprehensive loss of SAR 158.15 million for the last year. The total shareholder's equity (there are no minority rights) for the year amounted to SAR -107.92 million compared with SAR -73.41 million for the last year. Total accumulated losses amounting to SAR 209.12 million, representing 209.12% of capital. The reason for the losses is mainly due to suspension of business. The Company announces that it will implement the procedures and instructions issued by the Capital Market Authority related to listed companies |
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