Alinma Tokio Marine Records Net Profit of SR1.4 mln during 1Q

Alinma Tokio Marine Company recorded a net profit before zakat of SR1.4 million during the first quarter, compared to a loss of SR784 thousand during the same quarter of the previous year.

This came after Alinma Tokio Marine announcement on Tuesday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

As for the net profits of shareholders’ funds investments, they amounted to SR2.5 million during the first quarter, compared to SR1.8 million during the same quarter of the previous year, a growth of 40%.

The deficit of insurance operations, minus the return on investments of policyholders (the results of operations) amounted to SR11 million during the first quarter, compared to a loss of SR8 million during the same quarter of the previous year, an increase of 45%.

Profits per share during the current period amounted to SR0.02, compared to a loss of SR0.05 during the same period of the previous year.

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

Having net Profit for the current quarter compared to net loss same quarter of the previous year is mainly due to Increase in GWP by 39.37%, increase in NWP by 47.4%, increase in NEP by36.4%, DDP decrease by SR3,344 thousand (increased by SR2,150 thousand same period last year) increase in net profit of policy holders investment by 83.37% and the increase in net profit of shareholder capital investment by 40.22%. The above positive contributors to have the net profit before zakat have been partially offset with the increase in Net incurred claims by 24.67%, increase in Policy acquisition costs by 51.2% and the increase in General and administrative expenses by 37.9%.

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

Having net Profit for the current quarter compared to net loss in previous quarter is mainly due to Increase in GWP by 84.99%, increase in NWP by 74.26%, DDP decrease by SR3,344 thousand (increased by SR1,310 thousand same period last year) increase in net profit of policy holders investment by 818.84% and the increase in net profit of shareholder capital investment by 247.19%. The above positive contributors to have the net profit before zakat have been partially offset with the increase in Policy acquisition costs by 13.5%.

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 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”).

Certain prior period figures have been reclassified to conform to the presentation in the current period

The profit per share is calculated on income after Zakat and Income Tax. The profit per share for the current quarter is SR 0.02 versus loss per share of SR 0.05 for the same quarter last year. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SR 188,085 thousand compared with SR 199,974 thousand for the same quarter last year which reflects a decrease of 5.95%. The accumulated losses as at Q1 2022 are SR 112,199 thousand which is 37.40% of the Paid-Up Capital. The Total comprehensive income for the current quarter is SR 1,176 thousand compared with total comprehensive loss of SR1,789 thousand for the same quarter last year.