MEDGUlF Records Losses before Zakat of SR135.5 mln at End Of 2021

The Mediterranean and Gulf Insurance and Reinsurance Company (MEDGUlF) recorded losses before zakat of SR135.5 million during 2021, compared to profitability of SR55 million during the year before last.

This came after MEDGUlF announcement on Tuesday of the estimated financial results for the period ending on 31.12.2021(12 months).

The net profits of shareholders’ funds investments during the current period amounted to SR48 million, compared to SR32 million during the same period last year, a growth of 58%.

The total shareholders’ equity (after excluding minority interests) during the current period amounted to SR1.02 billion, compared to SR 765 million during the same period last year, an increase of 34%.

Losses per share during the current period amounted to SR1.85, compared to a profit of SR0.49 during the same period last year.

The main reason behind the net loss during the current year compared to net profit during the previous year is due to the decrease in NWP by 11.64% and increase in net Claims incurred by 21.84%, partially offset by the increase in shareholders’ investment income by 57.88% and the reversal of doubtful debts amounting to SR 24,514 thousand.

The company said in a statement that the certain prior year figures have been reclassified to conform to current year presentation.

The loss per share for the current year is SR 1.85 per share versus earning of SR 0.49 per share for last year, calculated by dividing the net loss attributed to shareholders after zakat and income tax of SR 140,588 thousand over the weighted average number of ordinary outstanding shares of 76,014 thousand for the current year and dividing net income of SR 36,913 thousand over the weighted average number of ordinary outstanding shares of 76,014 thousand for the previous year.

The total shareholders` equity (no minority interest) as at 31 December 2021 SR 1,023,417 thousand compared to SR 764,700 thousand as at 31 December 2020, an increase of 33.83%.

The accumulated losses have reached SR 147,611 thousand for the year ended 31 December 2021, which consists of 14.06% of the paid in capital amounting to SR 1,050,000 thousand.

The net loss after zakat and income tax during the current year is SR 140,588 thousand compared to net income of SR 36,913 thousand during the previous year.

The total insurance operations comprehensive loss during the current year is SR3,765 thousand compared to total insurance operations comprehensive income of SR3,298 thousand during the previous year. The total shareholders` comprehensive loss during the current year is SR153,829 thousand compared to total shareholders` comprehensive income of SR53,567 thousand during the previous year.