Alinma Tokio Marine Records Losses before Zakat of SR11.18 mln at End of 2021

Alinma Tokio Marine Company recorded losses before zakat of 11.187 million during the year 2021, compared to losses of SR1.44 million during the year 2020, an increase of 672%.

This came after Alinma announcement on Wednesday of the financial results for the period ending on 31.12.2021 (12 months).

The net investment profits of shareholders’ funds during the current period amounted to SR3.72 million, compared to SR3.31 million during the same period last year, an increase of 12.57%.

The loss per share during the current period amounted to SR0.48, compared to SR0.19 during the same period last year.

The reason of the increase (decrease) in the net profit during the current year compared to the last year is:

The increase in net loss for the year compared to last year is mainly due to decrease in gross premiums written by 3.4%, decrease in reinsurance commission earned by 17.2%, increase in net claims incurred by 9.39%, increase in changes in unit linked reserves by 34.4% and the increase in general and administrative expenses by 7.7%. the above negative contributors to increase in loss have been partially offset with the increase in net premiums written by 27.6%, increase in net premiums earned by 3.7%, the increase in other underwriting income by 11% and the increase in net policy holders profit by 156%.

The joint independent auditors report on the annual financial statements states that the financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021, and its financial performance and its cash flows for the year ended in accordance with International Financial Reporting Standards (“IFRSs”) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants (“SOCPA”).

The company said that certain prior year figures have been reclassified to conform to the presentation of the current year. These changes have been made to better reflect the balances and transactions in the financial statements of the Company

The loss per share is calculated on income after Zakat and Income Tax. The loss per share for the current year is SR 0.48 versus loss per share of SR 0.19 for the comparative year which represents an increase of 147.4%, which is calculated based on the weighted average number of ordinary shares outstanding during the year. The total of shareholder’s equity (there are no minority rights) for the current year amounted to SR 186,909 thousand compared with SR 201,763 thousand for the comparative year ended 31 December 2020, which reflects a decrease of 7.36%. The accumulated losses as at the end of the year is SR 112,830 thousand which is 37.61% of the Paid-Up Capital. The Total comprehensive loss for the current year is SR 14,854 thousand compared with total comprehensive loss of SR 5,287 thousand for the comparative year which represents an increase of 181%.