Al-Rajhi Takaful Profits Decreased to SR43 mln during the 3Q by 34%

Al-Rajhi Cooperative Insurance Company net profit before zakat decreased to SR42.93 million during the third quarter, compared to SR65.05 million during the same quarter of the previous year, by 34%.

This came after Al-Rajhi Company for Cooperative Insurance announced on Wednesday  its interim financial results for the period ending on 2021-09-30 (nine months).

The net profit of shareholders’ funds investments amounted to SR6.8 million during the third quarter, compared to SR3.4 million during the same quarter of the previous year, a growth of 100.67%.

The net profit before zakat during the current period amounted to SR157.11 million, compared to SR197.08 million during the same period of the previous year, a decrease of 20.28%.

Profits per share during the current period amounted to SR3.25, compared to SR4.43 during the same period of the previous year.

The net profit before Zakat has decreased by SR 2,751 thousand (6.02%) primarily due to the decrease in net contributions earned of SR 19,969 thousand (3.49%) and was partly offset by the decrease in net claims incurred by SR 15,920 thousand (3.76%).

The decrease in net profit before Zakat of SR 39,974 thousand (20.28%) is primarily due to the decrease in net contributions earned by SR 81,688 thousand (4.62%), increase in policy acquisition costs of SR 35,893 thousand (35.96%) and is partly offset by the decrease in net claims incurred by SR 25,981 thousand (2.09%), increase in reinsurance commission income of SAR 11,140 thousand (69.94%) and decrease in general & administrative expenses of SR 33,904 thousand (15.14%).

The comparative amounts of previous periods have been reclassified to match with the current presentation. The company hereby confirms that there are no classification changes in the net underwriting surplus or net profit before Zakat.

Earnings per share (EPS) for the periods were calculated based on the Profit after Zakat.