Alinma Tokio Marine Records a Loss before Zakat of SR3.83 mln during the 3Q

Alinma Tokio Marine Company recorded a loss before zakat of SR3.83 million during the third quarter, compared to a profit of SR1.25 million during the same quarter of the previous year.

This came after the announcement today of the consolidated preliminary financial results for the period ending on 09-30-2021 (9 months).

As for the net losses of shareholders’ funds investments, they amounted to SR121 thousand during the third quarter, compared to SR1.25 million during the same quarter of the previous year.

The loss before zakat during the current period amounted to SR7.10 million, compared to a profit of SR3.67 million during the same period of the previous year.

The loss per share during the current period amounted to SR0.31 riyals, compared to a profit of SR0.03 during the same period of the previous year.

Having net loss for the current quarter compared to net profit same quarter of the previous year is mainly due to Increase in net incurred claims by 48.13%, decrease in Reinsurance commission earned by 20.57%, increase in Policy acquisition costs by 15.26% and the increase in General and administrative expenses by 12.48%, the above negative contributors to have the net loss before zakat have been partially offset with the increase in NWP by 51.44% and increase in NEP by 15.47%, and the decrease in the provision for doubtful receivables (SR 33 thousand release in Q3 2021 : SR 2,345 thousand expense in Q3 2020).

The increase in net loss for the current quarter compared to the previous quarter is mainly due to the decrease in net profit of Policy holders investment by 29.7% and Having a net losses for shareholders capital investment (SR 1.4 million profit in Q3 2020: SR 0.12 million losses in Q3 2021)

Having net loss for the current period compared to net profit same period of the previous year is mainly due to decrease in Reinsurance commission earned by 18.13%, Increase in net incurred claims by 11.35%, Total underwriting costs and expenses by 21.43% and the increase in General and administrative expenses by 12.27%, the above negative contributors to have the net loss before zakat have been partially offset with the increase net profit of policy holders investment by 527.33%.

Certain prior period figures have been reclassified to conform with the presentation in the current period

The loss per share is calculated on income after Zakat and Income Tax. The loss per share for the current period is SR 0.31 versus profit per share of SR 0.03 for the same period last year. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SR 192,101 thousand compared with SR 208,312 thousand for the same period last year which reflects a decrease of 7.78%. The accumulated losses as at Q3 2021 is SR 107,807 thousand which is 35.9% of the Paid-Up Capital. The Total comprehensive loss for the current period is SR 9,662 thousand compared with total comprehensive income of SR 1,118 thousand for the same period last year.