AXA Insurance’s Profits Fell to SR45.4 mln during the 3Q by 18%

AXA Cooperative Insurance Company net profit before zakat for decreased to SR45.4 million during the third quarter, compared to SR55.65 million during the same quarter of the previous year, by 18.3%.

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

As for the net profit from investments of shareholders’ funds, it amounted to SR5.49 million during the third quarter, compared to SR7.82 million during the same quarter of the previous year, a decrease of 29.8%.

The net profit during the current period amounted to SR124.18 million, compared to SR125.96 million during the same period of the previous year, down 1.41%.

The decrease in net profit before zakat by SR (10,210) thousands can be attributed to overall decrease in insurance results of the company which is decreased from SR 45,419 thousands in previous quater to SR 36,011 thousands in current quarter due to deterioration in the loss ratio mainly in Motor & Health segment . In addition overall decrease in investment income by SR(2,203) thousands (Policy & shareholders combined) has also contributed to the decrease in net profit before zakat and tax compared to same quarter in the previous year.

The Increase in net profit before zakat by SR 10,476 thousands compared to previous period is attributed to overall increase in surplus from insurance operation mainly due to improvement in Property & casualty segment. In addition, overall increase in investment income by SR 2,225 thousands (Policy & shareholders combined) has also contributed to the increase in net profit before zakat and tax compared to previous quarter.

The decrease in net profit before zakat by SR (1,776) thousands which is attributed mainly due to decrease in insurance results of the company which is decreased from SR 93,972 thousands in previous period to SR 92,340 thousands in current period. This decrease is mainly due to increase in net claims incurred by 10,237 thousands (mainly in Health segments). In addition investment income which is decreased by SR (232) thousands (Policy holders & Shareholders combined) in current period as compared to corresponding period of last year.

The external auditors interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia.

Earnings per share has been calculated based on net income after zakat. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SR 977,474 thousands compared with SR 827,704 thousands for the same period last year , which is increase of 18.09%. The retained earnings as at the end of the period is SR 334,982 thousands which is 66.99% of the paid up capital.

The total comprehensive income for policyholders for the current quater is SAR 1,333 thousands , compared to SR 9,325 thousands for the same quarter last year, compared to income of SAR 6,658 thousands for the previous quarter.

The total comprehensive income for policyholders for the current period is SR 1,700 thousands , compared to SR 18,546 thousands for the same period last year. The total comprehensive income for shareholders for the current quarter is SAR 41,905 thousands, compared to SR 56,911 thousands for the same quarter last year , compared to SR 34,644 thousands for the previous quarter. The total comprehensive income for the shareholders for the current period is SR 116,378 thousands, compared to SR 111,281 thousands for the same period last year.