Gulf Union Alahlia Posts SAR 125 Million Profit in 2023, Reversing Prior Losses

Gulf Union Alahlia Cooperative Insurance Co. announced a significant financial turnaround, recording a net profit of SAR 125 million after zakat for the year ended December 31, 2023. This marks a stark reversal from the SAR 18.3 million loss reported in the previous year. The company unveiled its annual financial outcomes today, highlighting a robust year of operations.

Insurance revenues surged by 23.2% to SAR 624.4 million in 2023, up from SAR 506.7 million the year before. This increase is attributed to the expansion in operations across all insurance sectors. Gross Written Premium (GWP) experienced growth, reaching SAR 690 million, compared to SAR 548 million in the preceding year, demonstrating a solid performance in the company’s core business activities.

The net profit from investment activities also saw an impressive jump to SAR 37.8 million from SAR 9.8 million, marking an increase of 282.8%. Earnings per share (EPS) improved to SAR 2.72, compared to a loss of SAR 0.47 per share in the previous year, reflecting the company’s successful recovery and profitability.

Significant strides were made in various financial metrics, including a 23% rise in insurance revenue and a 139% increase in other income, totaling SAR 35.7 million. Operational expenses saw a decrease, contributing to the company’s efficient management and enhanced profitability.

Gulf Union Alahlia also noted the adoption of IFRS 17 and IFRS 9 standards starting January 1, 2023, which significantly altered the presentation of financial results and comparative periods. This transition underscores the company’s commitment to adhering to the highest standards of financial reporting and transparency.

Shareholders’ equity saw a 31.91% increase to SAR 547.9 million, up from SAR 415.4 million at the end of the previous year. Total comprehensive income for the year amounted to SAR 132.5 million, a remarkable recovery from a restated loss of SAR 14.02 million in the previous year.

The company’s performance in 2023 not only signifies a remarkable turnaround but also positions Gulf Union Alahlia for sustained growth and stability in the insurance sector.