Chubb Arabia’s Profits Surge 98% to SAR 24.8 Million by End of 2023

CHUBB Arabia Cooperative Insurance Co. has reported a remarkable increase in net profit after zakat attributable to shareholders, reaching 24.8 million riyals for the year ending on December 31, 2023. This represents a substantial growth of 98% compared to 12.5 million riyals in the preceding year. The announcement was made following the release of the annual financial results for December 2023.

In the same period, insurance revenues showed a solid performance, totaling 329.4 million riyals, a 10% increase from 299.3 million riyals in the previous year. Additionally, net profits from investment results surged to 19.4 million riyals, marking a significant growth of 134.8% from 8.2 million riyals in the year before last.

Earnings per share also saw a positive trend, reaching 0.83 riyals during the past year compared to 0.42 riyals in the preceding year.

For the current year, insurance revenues amounted to SR 329,438K, up from SR 299,356K in the previous year, showcasing a 10% increase primarily driven by business expansion.

The rise in net profit before zakat and income tax for the current year, totaling SR 32,302K compared to the previous year, can be attributed to several key factors:

• Improvement in insurance revenue for the current year, amounting to SR 30,082K compared to the same previous year, reflecting a 10% increase.

• Decrease in insurance service expenses by SR 42,915K, a 22% reduction compared to the same previous year.

• Increase in net investment income by SR 11,163K, marking a 135% rise compared to the same period of the previous year.

• Decrease in other income by SR 968K, a 76% decrease compared to the same period of the previous year.

• Partially offset by an increase in operating expenses by SR 1,573K, a 12% rise compared with the same period of the previous year.

• Increase in net insurance finance expenses by SR 1,678K, a notable 1332% increase compared with the same period of the previous year.

The company has also reclassified and restated comparative information to comply with the newly implemented standards IFRS 17 and IFRS 9.

Additional Information:

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

2. Total shareholders’ equity as of December 31, 2023, amounted to SAR 423,840K, showing an increase of 7% from SAR 394,802K for the same period last year.

3. The total comprehensive income for the current period stands at SAR 29,038K, a substantial increase of 222% from SAR 9,017K for the same period last year.