United Assurance reports loss leap of 314% last year

United Cooperative Assurance Co. reported a loss surge of 314% to SR 66 million in 2021 from losses of SR 16 million in 2020.

The company added that it reported that net profit of shareholders capital investment declined 51% to SR 5 million compared to SR 10 million in 2020.

Total Shareholders’ equity (after deducting minority equity) of United Cooperative Assurance slipped by 25% to SR 250 million in 2021 from SR 333 million, while the company added losses per share at SR 1.84 against profit per share at SR 1.1 during the same period of the year earlier.

The losses were mainly driven by lower net underwriting results which are primarily driven by the increase in net claims incurred, in addition to a decrease in the total income of policyholders’ and shareholders’ investments.