Enaya losses plunge 20.6% to SR16.7 mln in 1Q

Saudi Enaya Cooperative Insurance Co. announced that its losses after zakat and tax plunged 20.6% to SR 16.7 million in the first quarter of 2022 compared to 21 million during the same period of 2021.

This came after Enaya announcement on Thursday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s net profit of shareholders capital investment rose 4% to SR 961K in the 1^st quarter of the current year from SR 924K in the same period of the previous year.

Total shareholders’ equity (after Deducting Minority Equity) of Enaya plunged 58.2% to SR 41.2 million in the first quarter of this year from SR 98.8 million a year ago, while the loss per share fell to SR 1.17 from SR 1.46.

Net Loss before Zakat is decreased by SAR 4,373K, a decrease of 20.69% . Net loss before Zakat for the current quarter is SAR 16,763K, compared to SAR 21,136K for the same quarter of the previous year. The reason for the decrease in Net Loss before Zakat is mainly attributable to a decrease in Other Operating Expenses by SAR 6,750K, a favorable decrease of 48.30%.

The decrease in Other Operating Expenses is mainly due to:

– decrease in General and administrative expenses by SAR 4,671K, a decrease of 37.94%;

– decrease in Allowance for doubtful debts by SAR 2,208K, a decrease of 80.20%.

This decrease in Other Operating expenses has been offset by an unfavorable increase in the Net Underwriting loss by SAR 2,377K, an increase of 33.18% due to increase in claims incurred.

Net Loss before Zakat is increased by SAR 1,304K, an increase of 8.44% . Net loss before Zakat for the current quarter is SAR 16,763K, compared to SAR 15,459K for the previous quarter. The reason for the increase in Net Loss before Zakat is mainly attributable to an unfavorable increase in Net Underwriting loss by SAR 2,186K which is increased by 29.73%.

Net underwriting loss for the current quarter is SAR 9,538K compared to SAR 7,352k in previous quarter representing an increase of SAR 2,186K.

The unfavorable increase in Net underwriting loss is offset by favorable decrease in Other operating expenses by SAR 882K, a decrease of 10.88%.

The external auditors interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Charted and Professional Accountants (“SOCPA”).

Reclassification of Comparison Items:

1. Total comprehensive loss for the current quarter is SR 17,513K compared to a loss of SR 21,886K for the same quarter last year, a decrease of 19.98% and compared to comprehensive loss of SR 17,271K in previous quarter, an increase of 1.40%.
2. Total shareholders’ equity (there is no minority interest) at the end of current period amounted to SR 41,242K compared to SR 98,841K for the same period last year, a decrease of 58.27%.
3. Total accumulated losses as at 31 March 2022 is SR 108,758K , representing 72.50% of share capital, as compared to SR 51,159K accumulated losses as at 31 March 2021, representing 34.11% of share capital.
4. It also should be noted that Procedures and Instructions applicable on companies listed in Saudi capital market whose accumulated losses reach 50% or more out of the capital thereof will be applied.
5. Earning/(Loss) per share (EPS) for current quarter is SR (1.17) per share based on 15,000K weighted average number of outstanding shares. EPS for the same quarter last year is SR (1.46) per share based on 15,000K weighted average number of outstanding shares. The loss per share has decreased by 19.86%, as net loss for the current quarter is SR 17,513K as compared to net loss of SR 21,886K for the same quarter last year.