GIG Profit Fells to SR26 mln in Q2, down 25%

The net profit before zakat of the Gulf Insurance Group “GIG” (formerly AXA Insurance) decreased in the second quarter to SR26 million, compared to SR35 million in the same quarter of last year, by 25%.

This came after the announcement on Thursday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The net profits of shareholders’ fund’s investments amounted to SR16 million in the second quarter, compared to SR7 million in the same quarter of the previous year, an increase of 127%.

The net profit of policyholders’ investments in the 6-month period amounted to 33 million, compared to 28 million riyals in the same period last year, a growth of 19%.

The net profit before zakat in the current period amounted to SR52 million, compared to SR79 million in the same period last year, down 34%.

Profits per share in the current period reached SR0.85, compared to SR1.29 in the same period last year.

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

The decrease in net profit before zakat by SR 8,761 thousand can be attributed to the overall decrease in the surplus from insurance operations. An increase in net claims incurred by SR 12,714 thousand (mainly in Health & motor segment) has contributed to the decrease in net profit before zakat and tax compared to the same quarter in the previous year.

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

The increase in net profit before zakat by SR 804 thousand can be attributed to investment income which is increased by 7,314 thousand (policyholders & shareholders combined) in the current quarter as compared to the previous quarter.

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

The decrease in net profit before zakat by SR 27,138 thousand can be attributed to the overall decrease in insurance results of the company which decreased from SR 78,739 thousand in the previous period to SR 51,601 thousand in the current period. This decrease is mainly due to deterioration in insurance results for motor insurance caused by an unprecedented increase in the frequency of accidents.

The external auditors interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia.

“The profits per share (“EPS”) for the current quarter is SR0.44 per share versus SR0.56 per share same quarter last year. EPS has been calculated based on net income after zakat. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SR 917,993 thousands compared with SR 938,145 thousands for the same period last year , which is increase of 2.15%. The retained earnings as at the end of the period is SR 347,344 thousands which is 69.46% of the paid up capital.

The gross comprehensive income (loss) for policyholders for the current quarter is SR(18,706) thousands, compared to SR6,658 thousands for the same quarter last year, compared to loss of SR(20,708) thousands for the previous quarter. The total comprehensive income (loss) for policyholders for the current period is SR(37,712) thousands, compared to SR368 thousands for the same period last year.

The gross comprehensive income(loss) for shareholders for the current quarter is SR (3,370) thousands, compared to SR 34,644 thousands for the same quarter last year, compared to SR 15,940 thousands for the previous quarter. The total comprehensive income for the shareholders for the current period is SR 12,570 thousands, compared to SR 74,473 thousands for the same period last year.

The profits after Zakat and Income Tax for the current period decreased to SR42,459 thousand compared to SR64,643 thousand for same period of last year , a decrease of 34.32%. The External Auditor reviewed the financial statements and issued an Unqualified Audit Report.”