Buruj Insurance Losses Rise 444.6% in 1Q to SR31.8 mln

Buruj Cooperative Insurance Company revealed that the net loss before zakat in the first quarter increased to SR31.8 million, compared to a loss of SR5.8 million in the same quarter of last year, at a rate of 444.6%.

This came after the announcement on Sunday of the preliminary financial results for the period ending 31.03.2022 (three months).

The net profit of shareholders’ funds investments in the first quarter amounted to SR3.5 million, compared to SR1.5 million in the same quarter of the previous year, a growth of 138.5%.

The net profit of policyholders’ investments in the first quarter amounted to SR2.16 million, compared to SR3 million in the same quarter of the previous year, down 27.7%.

The total shareholders’ equity “without minority rights” in the three-month period amounted to SR408.4 million, compared to SR440.2 million in the same period last year, a decrease of 7.2%.

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

The reason for increase in loss this quarter compared to the same quarter last year is attributed to net underwriting deficit amount SR (20,062,484) compared to net underwriting surplus amount SR 4,379,711 in same quarter last year. The net underwriting deficit is attributed to increase in net claims paid and change in net outstanding claims combined by 123.57%. In addition to increase in net change in IBNR by SR 6,121,117 against a release of SAR 1,918,430 for same quarter of last year and as a result the net incurred claims increased by 160.45%.

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

The reason for loss this quarter compared profit in previous quarter is attributed to underwriting deficit amount SR (20,062,484) compared to net underwriting surplus amount SR 18,575,863 in previous quarter. The net underwriting deficit is attributed to increase in net claims paid and change in net outstanding claims combined by 177.58%. In addition to increase in net change in IBNR by 233.72% and as a result the net incurred claims increased by 181.53%.In addition to decrease in net profit arising from policy holders and shareholders investments combined by SR 15,591,393.

Loss or earnings per share have been calculated based on net result after Zakat.