Enaya Insurance losses Rise to SR12.8 mln during the 3Q by 27%

Saudi Enaya Cooperative Insurance Company losses before zakat increased to SR12.8 million during the third quarter, compared to SR10.1 million during the same quarter of the previous year, an increase of 27%.

The deficit of insurance operations, minus the revenues of policy holders’ investments (operational procedures results) amounted to SR13.05 million during the third quarter, compared to SR11.13 million during the same quarter of the previous year, an increase of 17.17%.

The gross written premiums (GWP) amounted to SR72.96 million during the third quarter, compared to SR46.29 million during the same quarter of the previous year, a decrease of 57.91%.

The net loss before zakat during the current period amounted to SR42.53 million, compared to SR22.12 million in the same period of the previous year, an increase of 92.22%.

The loss per share during the current period amounted to SR2.99, compared to SR1.59 during the same period of the previous year.

The net loss before Zakat increased by SR2, 728 thousand, an estimated increase of 27.01%. The net loss before Zakat for the third quarter of 2021 amounted to SR 12,828 thousand, compared to 10,100 thousand for the third quarter of the previous year.

Net Loss before Zakat is increased by SR 2,728K, an increase of 27.01%. Net loss before Zakat for the current quarter is SR 12,828K, compared to SR 10,100K for the same quarter of the previous year. The reason for the increase in Net Loss before Zakat is mainly attributable to a deterioration in net underwriting result by SR 5,518K.

The increase in net underwriting loss is mainly due to the increase in total underwriting cost and expenses by SAR 10,700K, an increase of 26.50%, offset by and fvorable increase in net earned premiums by SAR 5,182K, an increase of 12.39%. This increase in net underwriting loss has been offset by a favorable decrease in the other operating expenses by SAR 2,790K, a decrease of 24.18%.

Net Loss before Zakat is increased by SR 4,266K, an increase of 49.82%. Net loss before Zakat for the current quarter is SR 12,828K, compared to SR 8,562K for the previous quarter of the same year. The reason for the increase in Net Loss before Zakat is mainly attributable to a decrease in investment income and gains on shareholders’ investment by SR 5,788K.

The decrease in investment income is offset by a favorable decrease in other operating expenses by SR 2,447K, a decrease of 20.49%.

‘Net Loss before Zakat is increased by SR 20,403K, an increase of 92.23% . Net loss before Zakat for the current period is SR 42,526K, compared to SR 22,123K for the same period of the previous year. The reason for the increase in Net Loss before Zakat is mainly attributable to a deterioration in net underwriting income by SR 24,544K.

Net underwriting loss for the current quarter is SR 4,079K compared to SR 3,154k in the previous quarter representing an increase of SR 925K.

The increase in net underwriting loss is mainly due to increase in total underwriting cost and expenses by SR 17,994K, an increase of 14.83%, decrease in net earned premiums by SR 6,550K, a decrease of 4.98%. This increase in net underwriting loss has been offset by a favorable decrease in the other operating expenses by SR 4,141K, a decrease of 12.83%.

‘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 (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Charted and Professional Accountants (“SOCPA”).

‘1. Total comprehensive loss for the current quarter is SR 13,578K compared to a loss of SR 10,700K for the same quarter last year, an increase of 26.9% and compared to comprehensive loss of SR 9,312K in previous quarter, an increase of 45.8%.

1. Total comprehensive loss for the nine months period ended 30 September 2021 is SR 44,776K compared to a loss of SR 23,923K for the same period last year, representing an increase of 87.17%.
2. Total shareholders’ equity (there is no minority interest) at the end of current period amounted to SR 75,951K compared to SR 125,217K for the same period last year, a decrease of 39.34%.
3. Total accumulated losses as at 30 September 2021 is SR 74,049K , representing 49.37% of share capital, as compared to SR 24,783K accumulated losses as at 30 September 2020, representing 16.52% of share capital.

It also should be noted that Procedures and Instructions applicable on companies listed in Saudi capital market whose accumulated losses reach 35% or more out of the capital thereof will be applied.

1. Earning per share (EPS) for current quarter is SR (0.91) per share based on 15,000K weighted average number of outstanding shares. EPS for the same quarter last year is SR (0.71) per share based on 15,000K weighted average number of outstanding shares. The loss per share has increased by 28.17%, as net loss for the current quarter is SR 13,578K as compared to net loss of SR 10,700K for the same quarter last year.
2. Earning per share (EPS) for the nine months period ended 30 September 2021 is SR (2.99) per share based on 15,000K weighted average number of outstanding shares. EPS for the nine months period ended 30 September 2020 SR (1.59) per share based on 15,000K weighted average number of outstanding shares. The loss per share has increased by 88.05%, as net loss for the current period is SR 44,776K as compared to net loss of SR 23,923K for the same period last year.