SAICO Achieves Net Profit of SR9 mln during 1Q

The Saudi Arabian Cooperative Insurance Company (SAICO) recorded a net profit before zakat of SR9 million during the first quarter, compared to losses of SR15 million during the same quarter of the previous year.

This came after SAICO announcement on Wednesday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

As for the net investment profits of shareholders’ funds, it amounted to SR15 million during the first quarter, compared to SR5 million during the same quarter of the previous year, a growth of 194%.

Profits per share during the current period amounted to SR0.23, compared to a loss of SR0.51 during the same period of the previous year.

The reason for the net profit before zakat during the current quarter 2022 compared to the net loss for the same quarter of 2021 is due to:

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 the net profit before Zakat during the current quarter of 2022 compared to the net loss for the same quarter of 2021 due to: The decrease in net claims incurred by 10%. also an increase in the net profit of Policy Holders investments and Shareholders Capital Investments by 183%, also a decrease in General and administrative expenses by 6%, also a decrease in Inspection and supervision fees by 4%, Despite the decrease in net premiums earned by 8%. And a decrease in reinsurance commission by 10% and a decrease in other income by 14% Also an increase in policy acquisition costs by 6%.

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 the in net profit before zakat during the current quarter of 2022 compared to the net loss for the previous quarter in 2021 due to: the decrease in net claims incurred by 17%. In addition to the increase in the net profit of Policy Holders investments and Shareholders Capital Investments by an amount of 16,045 thousand riyals compared to 2,371 thousand riyals’ profit for the previous quarter, An increase in doubtful debts by 178%. An increase in other income by 189%.

Despite the decrease in net earned premiums by 4% and the decrease in the reinsurance commission by 53%, increase in inspection and supervision fees by 99%. Also a increase in policy acquisition costs by 23% and increase in general and administration expenses by 5%.

The auditor’s report stated that the company had prepared the interim condensed financial statements in accordance with International Accounting Standard No. (34) – “Initial Financial Reports”, which is approved in the Kingdom of Saudi Arabia.

Certain re classifications were made in comparative figures to confirm to the current presentation.

Profits / (Loss) per share is calculated after zakat. Earnings per share for the current period amounted to SR0.23, compared to (SR0.51), loss per share for the same period in the previous year, which was calculated for the period ending on 31-03-2022 according to the weighted average number of The shares amounting to 30,000 thousand shares, and the earnings per share for the period ending on 31-03-2021, were calculated according to the weighted average number of shares amounting to 30,000 thousand shares.