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Gulf Union Alahlia Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

GULF UNION ALAHLIA 8120 -0.79% 12.56 -0.10
Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change
Gross Written Premiums (GWP) 116,379 156,915 -25.833 128,214 -9.23
Net Written Premiums (NWP) 90,300 134,342 -32.783 95,511 -5.455
Net Incurred Claims 143,865 105,056 36.941 148,313 -2.999
Net Profit (Loss) of Policy Holders Investment 1,994 1,150 73.391 1,604 24.314
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) -21,093 -10,689 97.333 -50,866 -58.532
Net Profit (loss) of Shareholders Capital Investment 2,617 1,023 155.816 2,912 -10.13
Net Profit (Loss) before Zakat -17,056 -10,180 67.544 -46,801 -63.556
Total Comprehensive Income -21,518 -9,255 132.501 -46,743 -53.965
All figures are in (Thousands) Saudi Arabia, Riyals
Element List Current Period Similar period for previous year %Change
Gross Written Premiums (GWP) 421,672 383,027 10.089
Net Written Premiums (NWP) 321,620 306,340 4.987
Net Incurred Claims 459,239 243,722 88.427
Net Profit (Loss) of Policy Holders Investment 4,808 4,816 -0.166
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) -132,043 -10,551 1,151.473
Net Profit (loss) of Shareholders Capital Investment 8,525 2,958 188.201
Net Profit (Loss) before Zakat -120,653 -5,681 2,023.798
Total Comprehensive Income -124,419 -3,746 3,221.382
Total Share Holders Equity (after Deducting Minority Equity) 147,912 140,757 5.083
Profit (Loss) per Share -5.34 -0.56
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated Losses Capital Percentage %
92,706 229,474 40.4
All figures are in (Thousands) Saudi Arabia, Riyals
Element List Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The main reason for the increase in the Loss is the increase in Policy Acquisition Cost, by SR 2,571 thousand , Increase in the other underwriting expense by SR. 3,730 thousand, increase in the doubtful debt expense by SR. 3,681 thousand and Increase in the net claims & other benefits incurred by SR. 38,808 thousand.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The main reasons for the decrease in the Loss is attributable to decrease in Change in additional premium reserve by SR 17,480 thousand, decrease in the net claims and other benefits incurred by SR. 4,449 thousand, decrease in the doubtful debt expense by SR. 4,677 thousand, increase in the other income by SR. 3,861 thousand and decrease in General and Administrative expenses by SR 10,750 thousand.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The main reason for the increase in the Loss is the increase in Net claims and other benefits incurred by SR. 215,517 thousand, Increase in the policy acquisition cost by SR. 11,575 thousand, Increase in the change in additional premium reserves by SR. 12,767 thousand, Increase in the change of other technical reserves by SR. 2,352 thousand, increase in the other underwriting expense by SR. 5,959 thousand, and increase in the General and administrative expense by SR. 15,869 thousand.
Statement of the type of external auditor's report Unmodified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion Emphasis of matter

We draw attention to Note 1 to the accompanying interim condensed financial information, which details communications received by the Company from the Saudi Central Bank (“SAMA”) regarding its solvency margin falling below the minimum requirement under the Implementing Regulations of the Cooperative Insurance Companies Control Law (the “Regulations”) and the requirement to address the solvency margin as per the Regulations. The Company has communicated its planned rectification measures to SAMA, including the recommendation of the Board of Directors to the shareholders of the Company, subsequent to the reporting period, to increase the share capital of the Company through a rights issue. Therefore, the Company’s compliance with minimum solvency margin requirements, as per the Regulations, is dependent on the successful execution and favourable outcome of these planned rectification measures. These events and conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Reclassification of Comparison Items Not applicable
Additional Information Additional Information

1. Earnings or Loss per share has been calculated on the basis of Total earnings or Loss for the period after Zakat and income tax.

2. Accumulated losses of the company reached 40% of its share capital. Amount of accumulated losses was SR 92,706 thousand while Share capital was SR 229,475 thousand as per third quarter financials. Date of accumulated losses reaching 40% of share capital was 30-09-2021. Reasons were as following:

- Increase in the net claims and other benefits incurred

- Increase in the policy acquisition cost.

- Increase in the technical reserves

- Increase in the general & administrative expense

The company has taken corrective actions to improve the operational result, and BOD has issue a recommendation to the shareholders to increase the share capital through rights issue. The company will take the necessary measures of listed companies related to those who their losses reached 35% or more of their share capital.

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