Al Rajhi Takaful profits increase to SAR 84.1 mln during Q3, by 50.6%

Al Rajhi Cooperative Insurance Company (Al Rajhi Takaful) revealed that net profit before zakat during the third quarter increased to SAR 84.1 million, compared to SAR 55.8 million in the same quarter of last year, by 50.6%. This came after today’s announcement of the preliminary financial results for the period ending on September 30. 2023 (nine months).

The total written premiums (GWP) in the third quarter amounted to SAR1.83 billion, compared to SAR 818.2 million in the same quarter of the previous year, an increase of 123.8%.

The net profit before Zakat in the 9-month period amounted to SAR 222.6 million, compared to SAR 68.7 million in the same period last year, a growth of 223.8%.

The earnings per share in the current period reached SAR 5.48, compared to SAR 1.52 in the same period last year.

“The Company has adopted IFRS 17 (Insurance Contracts), as endorsed in Saudi Arabia, starting January 01, 2023 with retrospective application. IFRS 17 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.

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:

During the current quarter the Company achieved Net Income after Zakat of SAR 81,933 thousand Riyals compared with SAR 53,095 thousand Riyals. The Increase of SAR 28,295 thousand compared with same quarter of the previous year was due to the following main reasons:

The decrease in insurance service results of SAR 10,234 thousand Riyals, compared to the similar quarter of last year, was offset by increase in net investment income by SAR 21,963 thousand Riyals. For details, please refer the attached summary results.

The increase in Net finance income of SAR 16,195 thousand compared with the same quarter of the previous year, an increase of 365.9%.

Moreover, Gross Written Premiums (GWP) increased by SAR 1,013,123 thousand compared with the same quarter of the previous year, an increase of 123.8%.

“The Company has adopted IFRS 17 (Insurance Contracts), as endorsed in Saudi Arabia, starting January 01, 2023 with retrospective application. IFRS 17 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.

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:

During the current quarter the Company achieved Net Income after Zakat of SAR 81,933 thousand Riyals compared with SAR 75,821 thousand Riyals in previous quarter of the current year. The Increase of SAR 6,112 thousand compared with same quarter of the current year was due to the following main reasons:

The decrease in insurance service results was offset by improvement in net investment income and net finance results. For details, please refer the attached summary results.

Moreover, Gross Written Premiums (GWP) increased by SAR 576,971 thousand compared with the previous quarter, an increase of 46.0%.

“The Company has adopted IFRS 17 (Insurance Contracts), as endorsed in Saudi Arabia, starting January 01, 2023 with retrospective application. IFRS 17 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.

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:

During the nine months the Company achieved Net Income after Zakat of SAR 219,036 thousand Riyals compared with SAR 60,890 thousand Riyals in the similar period of last year. The Increase of SAR 158,146 thousand Riyals due to the following main reasons:

Increase in insurance service results by SAR 240,942 thousand riyals, increase of 530.7%. This was driven by an improvement in insurance service results before re-takaful contracts held. For details, please refer the attached summary results.

Increase in net investment income of SAR 46,378 thousand compared with the same period of the previous year, an increase of 71.9%.

Furthermore, the Gross Written Premiums (GWP) increased by SAR 1,718,987 thousand compared with the same period of the previous year, an increase of 66.8%.

The Company has adopted IFRS 17 (Insurance Contracts) 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.

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 earnings per share (EPS) for the current period is SAR 5.48 per share compared to SAR 1.52 per share (restated) for the same period of the previous year which is calculated by dividing the net income after zakat of SAR 219,036 thousand over the weighted average number of ordinary outstanding shares of 40,000 thousand for the current period and SAR 60,890 thousand over 40,000 thousand for the same period of the previous year.

The total comprehensive income for the current period is SAR 272,542 thousand compared to SAR 29,341 thousand for the same period of the previous year, increased of 828.9%.

The total Shareholder Equity (no minority interest) as at the end of the current period is SAR 1,599,900 thousand compared to SAR 1,356,217 thousand for the same period of the previous year, an increase of 18.0%.