Alinma Tokio Marine Achieves Net Profit before Zakat of SR1.08 mln during Q2

Alinma Tokio Marine Company recorded a net profit before zakat of SR1.08 million during the second quarter, compared to losses of SR2.5 million in the same quarter of last year.
This came after the announcement on Wednesday of the preliminary financial results for the period ending on 30.06.2022 (six months).
The net investment losses of shareholders’ funds amounted to SR397 thousand in the second quarter, compared to a profit of SR1.4 million in the same quarter of the previous year.
The net profit before zakat in the 6-month period was SR2.4 million, compared to losses of SR3.3 million in the same period last year.
The gross shareholders’ equity “without minority rights” amounted to SR537 million in the current period, compared to SR550.9 million in the same period last year, a decrease of 2.5%.
Profits per share in the current period amounted to SR0.04, compared to losses of SR0.16 in the same period last 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 47.2%, increase in NWP by 41%, increase in NEP by 39%, and the decrease in General and administrative expenses by 13.3%. The above positive contributors to have the net profit before zakat have been partially offset with the increase in Net incurred claims by 51%, having a net loss of policy holders’ investment of SR9,901 thousand (Q2 2021 Net profit of SR5,565 thousand) as well as the increase in Policy acquisition costs by 52%.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The decrease in net Profit for the current quarter compared to previous quarter is mainly due to the decrease in NWP by 28.6% Increase in Net incurred claims by 52.2%, having a net loss of policy holders’ investment of SR9,901 thousand (Q1 2022 Net profit of SR11,035 thousand) The above negative contributors to have less net profit before zakat have been partially offset with the decrease in General and administrative expenses by 25.7%.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
Having net Profit for the current period compared to net loss same period of previous year is mainly due to Increase in GWP by 43.7%, increase in NWP by 44.7%, increase in NEP by 37.7%. A reversal in the Provision for doubtful receivables by SR 3,305 thousand (Same period last year: increase the same provision by SR3,826 thousand). The above positive contributors to have the net profit before zakat have been partially offset with the increase in Net incurred claims by 39.3%, decrease in net profit of policy holders’ investment by 90.2%, and the increase in General and administrative expenses by 10.2%.
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 period is SR0.04 versus loss per share of SR 0.16 for the same period last year. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SR188,901 thousand compared with SR196,777 thousand for the same period last year which reflects a decrease of 4%.
The accumulated losses as at Q2 2022 is SR111,558 thousand which is 37.19% of the Paid-Up Capital. The Total comprehensive income for the current period is SR1,992 thousand compared with total comprehensive loss of SR4,986 thousand for the same period last year.