CHUBB’s profits grow 293.3% during Q3 to SAR 9.7 mln

The net profit before zakat for Chubb Arabia Cooperative Insurance Company grew during the third quarter to 9.7 million riyals, compared to 2.4 million riyals in the same quarter of last year, by 293.3%. This came following today’s announcement of the preliminary financial results for the period ending on 09-30-2022 (nine Months).

Total written premiums (GWP) in the third quarter amounted to 64.7 million riyals, compared to 55.6 million riyals in the same quarter of the previous year, an increase of 16.2%.

The net profit before Zakat in the 9-month period amounted to 22.1 million riyals, compared to 10.1 million riyals in the same period last year, a growth of 117.7%.

Earnings per share in the current period reached 0.55 riyals, compared to 0.27 riyals in the same period last year.

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. 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 and IFRS 9.

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.

The increase in net profit before zakat and income tax for the quarter of SR 7,278K compared with same quarter of the previous year was due to the following main reasons:

• Improvement in insurance revenue SR 7,608K compared with the same quarter of the previous year, an increase of 10% and a decrease in insurance service expense of SR 83,731K, a decrease of 84%, compared with the same quarter of the previous year. These movements were partially offset by an increase in net expense from reinsurance contracts held SAR 83,973k compared with the same quarter of the previous year, an increase of 340%.

• Increase in net investment income of SR 2,322K compared with the same quarter of the previous year, an increase of 144%.

• Decrease in other income of SR 2,432K compared with the same quarter of the previous year, a decrease of 73%.

The increase in net profit before zakat and income tax for the current quarter of SR 2,532K compared with previous quarter of the same year was due to the following main reasons:

• Improvement in insurance service expenses for current quarter of SR 38,237K, a decrease of 71% compared with the previous quarter of the same year and a decrease in net insurance finance expenses of SR 312K, a decrease of 91%, compared with the previous quarter of the same year. • These movements were partially offset by a decrease in insurance revenue of SAR 2,903k ,a decrease of 3%, compared with the previous quarter of the same year, an increase in net expense from reinsurance contracts held of SR 32,215K,a decrease of 119% compared with the previous quarter of the same year and a decrease in net investment income of SR 124K, an decrease of 3% compared with the previous quarter of the same year, a decrease in other income of SR 464K, a decrease of 34% compared with the previous quarter of the same year and an increase in operating expenses of SR 310K, an increase of 9%, compared with the previous quarter of the same year.

The increase in net profit before zakat and income tax for the current period of SR 11,977K compared with same period of the previous year was due to the following main reasons:

• Improvement in insurance revenue for current period of SR 24,584K compared with the same period of the previous year, an increase of 11% These movements were partially offset by an increase in insurance service expenses of SR 4,719K, an increase of 3%, compared with the same period of the previous year and increase in net expenses from reinsurance contracts held SAR 15,076k, an increase of 28% compared with the same period of the previous year.

• Increase in net investment income of SR 7,072K compared with the same period of the previous year, an increase of 139%.

• Increase in other income of SR 2,115K compared with the same period of the previous year, an increase of 49%.

• These movements were partially offset by an increase in operating expenses of SR 1,012K, an increase of 11%, compared with the same period of the previous year and an increase in net insurance finance expenses of SR 988K, an increase of 381%, compared with the same period of the previous year.

1. Profit per share was calculated after Zakat and Income Tax.

2. Total shareholders’ equity at 30/09/2023 SAR 410,848K compared to SAR 388,012K for the same period of last year with an increase of 6%.

3. The total comprehensive income for the current period is SAR 16,046K compared to SAR 2,227K for the same period last quarter, an increase of 621%.