Gulf Union Alahlia turns to SR1.7 mln profits in Q2‎

The financial statements of the Gulf Union Alahlia Cooperative Insurance Co. showed that the company turned to profitability in the second quarter of this year, with a value of 1.714 million riyals, compared to a net loss before zakat of 46,801 million riyals in the same period last year.

The company said in a statement to the Saudi market, “Tadawul”, today, Sunday, that the positive shift in results during the comparison periods is due to several factors as follows:

The main reason of the profit before Zakat as following:

Decrease in net claims and other benefits incurred to SR. 76.5 Million in Q2- 2022 compared to SR. 148.3 Million in Q2-2021.

Decrease in Policy acquisition costs to SR. 8.4 Million in Q2-2022 compared to SR. 14.3 Million in Q2-2021.

Decrease in Changes in additional premium reserves to SR. 729.5 Thousand in Q2-2022 compared to SR. 7.1 Million in Q2-2021.

Decrease in changes in other technical reserves to SR. 1.6 Million (Reversal) in Q2-2022 compared to SR. 1.9 Million in Q2-2021.

Decrease in Allowance for doubtful debts to SR. 411.5 Thousand (Reversal) in Q2-2022 compared to 3.0 Million in Q2-2021.

Decrease in General and administrative expenses to SR. 22.9 Million in Q2-2022 compared to 32.3 Million in Q2-2021.

Increase in Other income to SR. 2.9 Million in Q2-2022 compared to 769.2 Thousand in Q2-2021.

The main reason of the profit before Zakat as following:

Decrease in net claims and other benefits incurred to SR. 76.5 Million in Q2- 2022 compared to SR. 91.7 Million in Q1-2022.

Decrease in Policy acquisition costs to SR. 8.4 Million in Q2-2022 compared to SR. 9.0 Million in Q1-2022.

Decrease in Changes in other technical reserves to SR. 1.6 Million (Reversal) in Q2-2022 compared to SR. 1.2 Million (Reversal) in Q1-2022.

Decrease in other underwriting expenses to SR. 4.8 Million in Q2- 2022 compared to SR. 6.3 Million in Q1-2022.

Decrease in Allowance for doubtful debts to SR. 411.5 Thousand (Reversal) in Q2-2022 compared to 3.4 Million in Q1-2022.

Decrease in General and administrative expenses to SR. 22.9 Million in Q2-2022 compared to 27.8 Million in Q1-2022.

Increase in Other income to SR. 2.9 Million in Q2-2022 compared to 260.6 Thousand in Q1-2022.

The main reason of decrease in Net losses for Current Period Compared to the Same Period of the Previous Year as following:

Decrease in net claims and other benefits incurred to SR. 168.3 Million in current period compared to SR. 315.3 Million in the same period of the previous year.

Decrease in Policy acquisition costs to SR. 17.5 Million in current period compared to SR. 28.1 Million in the same period of the previous year.

Decrease in Changes in additional premium reserves to SR. 1.1 Million in current period compared to SR. 17.5 Million in the same period of the previous year.

Decrease in changes in other technical reserves to SR. 2.8 Million (Reversal) in current period compared to SR. 1.8 Million in the same period of the previous year.

Decrease in Allowance for doubtful debts to SR. 3.0 Million in current period compared to SR. 6.7 Million in the same period of the previous year.

Decrease in General and administrative expenses to SR. 50.7 Million in current period compared to SR. 61.3 Million in the same period of the previous year.

Increase in Investment income to SR. 9.2 Million in current period compared to SR. 8.7 Million in the same period of the previous year.

Increase in Other income to SR. 3.2 Million in current period compared to SR. 2.6 Million in the same period of the previous year.

Additional Information:

1. Earnings or Loss per share has been calculated based on the Total earnings or Loss for the period after Zakat and income tax, taking into effect the impact of rights issue of shares during the period. As a result of the rights issue, the weighted average number of shares used in the calculations of earnings per share were adjusted.
2. Accumulated losses of the company reached 29.16% of its share capital. Amount of accumulated losses was SR. 133.848 Million while Share capital was SR 458,949 Million. The company will take the necessary measures of listed companies related to those who their losses reached 20% or more of their share capital.
3. On June 8, 2022, the Company completed its rights issue amounting to Saudi Riyals 229.5 million.