Arabian Shield profits up 16% to SR9 mln in Q2‎

The net profit before zakat for the Arab Shield Cooperative Insurance Co. increased to 9 million riyals during the second quarter, compared to 8 million riyals during the same quarter of the previous year, at a rate of 16%.

This came after the announcement today of the consolidated preliminary financial results for the period ending on 06-30-2022 (6 months).

As for the net profit of shareholders’ funds investments, it amounted to 3 million riyals during the second quarter, compared to 8 million riyals during the same quarter of the previous year, down 65%.

The net profit before zakat during the current period amounted to 16.4 million riyals, compared to 23.3 million riyals during the same period of the previous year, a decrease of 30%.

Profits per share during the current period amounted to SR 0.11, compared to SR 0.41 during the same period of the previous year.

The INCREASE in Net Profit for the quarter compared with the same quarter last year is due to increase in Net Earned Premium by 97% which was offset by decrease in Earned Commission Income by 11%, increase in Net Incurred Claims by 69%, increase in Other Underwriting Costs by 297%, increase in Operating & Administrative Expenses by 43% and decrease in Investment Income by 50%.

The INCREASE in Net Profit for the quarter compared with the previous quarter is due to increase in Net Earned Premium by 7% and decrease in Other Underwriting Costs by 49% which was offset by decrease in Earned Commission Income by 11%, increase in Net Incurred Claims by 8%, increase in Operating & Administrative Expenses by 93% and decrease in Investment Income by 69%.

The DECREASE in Net Profit for the period compared with the same period last year is due to decrease in Earned Commission Income by 12%, increase in Net Incurred Claims by 54%, increase in Other Underwriting Costs by 4536% and increase in Operating & Administrative Expenses by 22% which was offset by increase in Net Earned Premium by 93% and increase in Investment Income by 38%.

The Financial Statements have been prepared in accordance with International Accounting Standard 34 endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”), consistent with the Company’s accounting policies. Comparatives have been restated.

Additional Information:

Total Comprehensive Income for the quarter was SR 5,171 thousand compared to SR 3,260 thousand for the equivalent quarter from the previous year, increased by 59% and compared to SR 7,269 thousand for the previous quarter, decreased by 29%.

Total Comprehensive Income for the period was SR 12,440 thousand compared to SR 22,177 thousand for the equivalent period from the previous year, decreased by 44%.

Total Shareholders’ Equity by end of the current period is SR 1,098,317 thousand compared to SR 484,081 thousand for the equivalent period from the previous year, increased by 127% (No minority interest).

The profits after Zakat and Income Tax for the current quarter reached SR 4,188 thousand compared to SR 4,831 thousand for the same quarter of last year, a decrease of 13%.

The earnings per share (EPS) for the current quarter are SR 0.07 per share versus SR 0.12 per share for the same quarter last year.

The profits after Zakat and Income Tax for the current period reached SR 6,758 thousand compared to SR 16,477 thousand for the same period of last year, a decrease of 59%.

The earnings per share (EPS) for the current period are SR 0.11 per share versus SR 0.41 per share for the same period last year.

The authorized, issued and fully paid share capital of the Company is SAR 638,524,620 consisting of 63,852,462 shares each with a nominal value of 10 Saudi Riyals.