SAICO Records Losses before Zakat of 7.6 mln during the 3Q

The Saudi Arabian Cooperative Insurance Company (SAICO) recorded a loss before zakat of SR7.6 million during the third quarter, compared to a profit of SR12.48 million riyals during the same quarter of the previous year.

This came after Saudi Arabian Cooperative Insurance Co. announced on Monday 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 SR3.4 million during the third quarter, compared to SR11.09 million during the same quarter of the previous year, a decline of 69%.

The loss before zakat during the current period amounted to SR37.9 million, compared to a profit of SR39.6 million during the same period of the previous year.

The loss per share during the current period amounted to SR1.4 riyals, compared to a profit of SR1.11 during the same period of the previous year.

The reason for the net loss before Zakat during the current quarter of 2021 compared to the net profit for the same quarter of 2020 is due to: The increase in net claims incurred by 14%. An increase in policy acquisition costs by 4%, and a decrease in other underwriting income by 90%. Also, a decrease in the net profit of shareholders’ capital investments by 69% which due to the recording losses of a decrease in the value on some investments at fair value through profit or loss during the current quarter. And a decrease in reinsurance commission by 6%. Also, an increase in doubtful debts by 65%, and a decrease in other income by 57% , despite the increase in net premiums earned by 4%.

The reason for the decrease in net loss before zakat during the current quarter of 2021 compared to the net loss from the previous quarter is due to: Decrease in inspection and supervision fees by 37%. And decrease in net claims incurred by 10%. Also a decrease in policy acquisition costs by 8%. In addition to the increase in the net profit of shareholders’ capital investments by an amount of 3,412 thousand riyals compared to 968 thousand riyals for the previous quarter which due to the recording profit of an increase in the value on some investments at fair value through profit or loss during the current quarter, A decrease in doubtful debts by 5%.

The reason for the net loss before zakat during the nine-month period compared to the net profit for the same period in the previous year is due to: The increase in net claims incurred by 32% and the increase in policy acquisition costs by 12%, the increase in inspection and supervision fees by 3%. Also the increase in general and administrative expenses by 15%. The decrease in other underwriting income by 84%. And a decrease in reinsurance commission by 22%.

An increase in doubtful debts by 272%. Despite the increase in net premiums earned by 10%. In addition to the increase in net profits in shareholders’ capital investment by 9,414 thousand riyals, compared to the net profit of shareholders’ capital investments of 8,625 thousand riyals for the same period of the previous year which was due to recording an increase in value on some investments at fair value through profit or loss during the period, and an increase in other income by 45%.

The auditor’s report stated that the company had prepared the interim condensed financial statements in accordance with International Accounting Standard No. (34) – “Initial Financial Reports”, which is approved in the Kingdom of Saudi Arabia.

Certain re classifications were made in comparative figures to confirm to the current presentation.

Earnings/(Loss) per share is calculated after zakat. (loss) per share for the current period amounted to SR(1.40), compared to SR1.11 .

Earnings per share for the same period in the previous year, which was calculated for the period ending on 30-09-2021 according to the weighted average number of The shares amounting to 30,000 thousand shares, and the earnings per share for the period ending on 30-09-2020 , were calculated according to the weighted average number of shares amounting to 30,000 thousand shares.