Amana Insurance losses rise 25% to SR29.2 mln in 1Q

Amana Cooperative Insurance Co. announced that its losses after zakat and tax rose 25.4% to SR 29.2 million in the first quarter of 2022 compared to SR 23.3 million during the same period of 2021.

This came after Amana Insurance announcement on Tuesday 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 82% to SR 3.3 million in the 1^st quarter of the current year from SR 1.8 million in the same period of the previous year.

Total comprehensive income of Amana Insurance climbed 26.4% to SR 31.3 million in the first quarter of this year from SR 24.7 million a year ago, while the loss per share rose to SR 2.31 from SR 0.87.

The reason for the increase in net loss before Zakat of Q1 2022 vs in Q1 2021 by SAR -5,941K (-18.16%) is recognized from the following net effects:

1.Increase in net underwriting result by SAR -6,540K (26.42%) and,

2.Increase in shareholders’ Investment Income by SAR 0.599K (41.23%) in comparison for current quarter with same quarter of the previous year.

The reason for the decrease in net loss before Zakat of Q1 2022 vs Q4 2021 by SAR 6,291K (17.70%) primarily due to the following main effects:

1.Improvement in underwriting results by SAR 2,505K and,

2.Lowe in Other underwriting results by SAR 4,026K

Additional Information:

‘The Company’s accumulated losses as of 31 March 2022 are 144.64% (31 December 2021: 120.94%) of the Company’s share capital, and as of the same date, the Company’s solvency reached -83.81% (31 December 2021: -48.08). These events and conditions indicate a material uncertainty on the Company’s ability to continue as a going concern. However, various strategic options, including capital restructuring, were considered by the Company’s Board of Directors and has already approved the business plan for 2022 on 18 January 2022. Further, an increase in share capital through rights issues amounting to SR 300 million was approved in the extraordinary general assembly meeting dated 28 February 2022.

The share capital increase is subject to the subsequent regulatory approval of CMA while approval from SAMA was received on 25 April 2022. Based on the above, the management is satisfied that the Company will continue as a going concern for the foreseeable future.