SABB Takaful Records Losses of SR957 thousand during 1Q

SABB Takaful Company recorded losses before zakat of SR957 thousand during the first quarter, compared to SR1.9 million during the same quarter of the previous year.

This came after SABB announcing on Thursday the consolidated preliminary financial results for the period ending on 31.03.2021 (three months).

As for the net profits of shareholders’ funds investments, they amounted to SR1.09 million during the first quarter, compared to SR1.6 million during the same quarter of the previous year, a decrease of 34%.

The loss per share during the current period amounted to SR0.08, compared to a profit of SR0.01 during the same period of the previous year.

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 reason for the Net (loss) before Zakat and income tax for Current Quarter Compared to the Net Profit before Zakat and income tax for Same Quarter of the Previous Year is attributed to the following:

1- There is an increase in General and admin expenses by SR6.4 Million in the current quarter comparing to same quarter of previous year. The General and admin expenses is SR15 Million in current quarter compared to SR8.6 Million in same quarter of previous year.

2- There is an increase in Net claims incurred (Excluding surrenders and maturity) by SR1.8 Million in the current quarter comparing to same quarter of previous year. The Net claims incurred (Excluding surrenders and maturity) is SR7.7 Million in current quarter compared to SR5.9 Million in same quarter of previous year.

3- There is an increase in the Changes in technical reserves by SR14.6 Million in the current quarter comparing to same quarter of previous year. The Changes in technical reserves is SR14.8 Million in current quarter compared to SR0.2 Million in same quarter of previous year.

The reason for the Decrease in Net (loss) before Zakat and income tax for Current Quarter Compared to the Previous Quarter is attributed to the following:

1- There is an increase in the Net contributions earned by SR18.6 Million for Current Quarter Compared to the Previous Quarter. The Net contributions earned in Current Quarter are SR55 million compared to SR36.4 million in Previous Quarter.

2- There is an increase in the Fee, commission and other underwriting income by SR0.3 Million for Current Quarter Compared to the Previous Quarter. The Fee, commission and other underwriting income is SR2.4 Million in Current Quarter compared to SR2.1 Million in Previous Quarter.

Certain of the prior year amounts have been reclassified to conform with the presentation in the current period. These changes were made for better presentation of balances and transactions in the Interim financial statements of the Company.

Earnings / (loss) per share calculated based on net profit / (loss) after zakat and tax.

The below is the Additional Information which has been added:

1- Note 1 Signing of a binding merger agreement with Walaa Cooperative Insurance Company (“Walaa”).

2- Note 13 Contingencies and commitments.