Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies. The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are reported as "0" are no longer presented in the new financial statements under IFRS 17 and IFRS 9. The following explanation will cover the relevant financial information reflected in the announcement above along with explanation on the new presentation of the financial results which are attached to this announcement: The decrease in net profit before zakat and income tax for the current period by SR 35M compared with previous same period of last year was due to the following main reasons: - Increase in net insurance service expenses by SR 591M compared with same period of last year, was driven mainly by increase in incurred claims by SR 459 M mainly due to incurred claims related property and casualty segment. Above unfavorable impacts were partially offset by the following favorable movements in the current period as compared to same period las year: (i) Increase in net reinsurance recoveries by SR 478M mainly due to increase in incurred reinsurance recoveries related to property and casualty segment. (i) Increase in insurance revenue by SR 83M mainly driven by Motor and P&C segment (ii) Increase in investment income by SR 21M |
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