SAICO reports losses of SR56 mln in 2021

Saudi Arabian Cooperative Insurance Co. (SAICO) turned to losses (before zakat) of SR 56 million in 2021 from a net profit of SR 58 million in 2020.

The company added that it reported that net profit of shareholders capital investment rose 25% to SR 11 million compared to SR 9 million in 2020.

Total Shareholders’ equity (after deducting minority equity) of SAICO slipped by 18% to SR 293 million in 2021 from SR 357 million, while the company added losses per share at SR 2.09 against profit per share at SR 1.58 during the same period of the year earlier.

SAICO turned to net losses was mainly due to higher net claims incurred by 35%, an Increase in Policy acquisition costs by 5%, an Increase in General and administrative expenses by 16%, a rise in Inspection and supervision fees by 6%, and a surge in doubtful debts by 132%, lower reinsurance commissions by 24%, a decrease in other underwriting income by 82%, a fall in other income by 16% despite the increase in net premiums earned by 7%, besides increase in net profit of investment by 8%.

The joint independent auditors report on the annual financial statements states that the accompanying 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 then 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 Chartered and Professional Accountants (SOCPA).

Moreover, The Earnings / Losses per Share (EPS) for the current period is SR (2.09) loss compared to SR 1.58 earnings for the previous period in 2020 Which was calculated based on weighted average number of shares which are 30,000 shares for the period ended December 31, 2021. Accordingly shares for the period ended December 31, 2020.