United Cooperative Assurance Co. announces its Annual Financial Results for the Period Ending on 2023-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Insurance Revenues | 1,061,771 | 634,333 | 67.38 | ||
| Result of Insurance Services | 436,449 | 294,662 | 48.12 | ||
| Net Profit (Loss) of The Insurance Results | 27,117 | -42,970 | - | ||
| Net Profit (Loss) of The Investment Results | 10,154 | 6,977 | 45.53 | ||
| Net Insurance Financing Expenses | -2,693 | 1,600 | - | ||
| Net Profit (Loss), After Zakat, Attributable To Shareholders | 5,292 | -55,482 | - | ||
| Total Comprehensive Income | 9,004 | -51,520 | - | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 265,155 | 256,151 | 3.52 | ||
| Profit (Loss) per Share | 0.13 | -1.39 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -180,562 | 45.14 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in revenues during the current year compared to the last year is | Insurance revenues for the current year amounted SR 1,061,771K, showing a 67.38% rise from the previous year’s SR 634,333K, principally driven by business growth observed during the year. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The company achieved a net income before zakat amounted to SR 9,562k during the current year compared to a net loss amounted to SR 52,482k of the restated results of previous year. While the net income after Zakat amounted to SR 5,292k during the current year compared to a net loss amounted to SR 55,482k of the restated results of previous year, this positive transition was primarily influenced by the following :
• Improvement in results of insurance services by SR 141,787K from the previous year, reflecting a 48% growth driven by greater insurance revenues and enhanced claims management resulting in reduced incurred claims. • Net profit of insurance service results for the current year stood at SR 27,117K, compared to a net loss of SR 42,970K for the previous year, which was principally driven by business growth and improvement in the overall loss ratios. • Net investment results for the current year amounted to SR 10,154K, compared to SR 6,977K of the restated results of previous year, an increase of 46%, which was influenced by the increase in the investment return. Moreover, Gross Written Premiums (GWP) for the current year amounted to SR 1,029,420K compared to SR 821,844K during the previous year, an increase of 25%. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | The external auditors’ report draws attention to Note 1 to the financial statements which indicates that the Company had accumulated losses of Saudi Riyals 180.56 million as of 31 December 2023. Further, the Company’s solvency margin is 61% as of 31 December 2023, which is below the Insurance Authority (“IA”) minimum solvency requirements. The ability of the Company to improve its financial performance and meet the minimum solvency margin requirements is dependent on the favorable outcome and realization of the Company’s planned measures and actions detailed further in Note 1. These events and conditions, along with other matters as set forth in Note 1 in the financial statements, indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
| Reclassification of Comparison Items | The Company has reclassified and restated comparative information to meet the requirements of the newly implemented standards IFRS 17 and IFRS 9. |
| Additional Information | 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.
EPS/(LPS) has been calculated based on net profit/loss after zakat and income tax for the year divided by the weighted average number of outstanding shares during the year. The earnings per share for the current year is SR 0.13 versus loss per share of SR 1.39 for the previous year which is calculated by dividing the net profit after zakat amounting of SR 5,292K over the weighted average number of ordinary outstanding shares of 40,000K for the current year, and a net loss after zakat amounting of SR 55,482K over 40,000K shares for the previous year. Total comprehensive income for the current year is SR 9,004K compared to a total comprehensive loss of SR 51,520K for the previous year. Total shareholders’ equity (no minority interest) as at the end of the current year is SR 265,155K versus SR 256,151K as at the end of the previous year, an increase of 3.52%. |
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