Malath Insurance losses decline 54% to SR3.9 mln in Q2‎

Malath Cooperative Insurance Company recorded a net loss before zakat in the second quarter of 3.9 million riyals, compared to a loss of 8.5 million riyals in the same quarter of last year, at a rate of 54.2%. This came after today’s announcement of the preliminary financial results for the period ending 06-2022. -30 (six months).

The net profit of shareholders’ funds investments in the second quarter amounted to 3.3 million riyals, compared to 4.9 million riyals in the same quarter of the previous year, a decrease of 31.9%.

The net loss before zakat in the 6-month period amounted to 24.9 million riyals, compared to 7.8 million riyals in the same period of the previous year, an increase of 215.8%.

The total shareholders’ equity “without minority rights” in the 6-month period amounted to 345.5 million riyals, compared to 380.8 million riyals in the same period last year, a decrease of 9.2%.

The loss per share in the current period was 0.63 riyals, compared to a loss of 0.29 riyals in the same period last year.

The company’s reported loss before Zakat for the current quarter (SAR 3.9 million) has decreased compared to the same quarter of the previous year (SAR 8.6 million) is mainly due to the following reasons:

1) An increase in net earned premium by 20.40% (SAR 38 million), and other underwriting income by 2032.31% (SAR 1.3 million).

2) A decrease in technical reserves (Excluding UPR and unearned reinsurance commission) movement by 161.76% ( SAR 9.9 million).

3) A decrease in provision for doubtful accounts, by 104.16% ( SAR 10.9 million).

4) Other General and administrative expenses decreased for the current quarter by 15.34% ( SAR 2 million).

The reason for the decrease in the loss before Zakat compared to the previous quarter is due to:

1) An increase in net underwriting income by 301.22% (SAR 32 million). That is mainly originated from the shrink in net claims incurred, that decreased from SAR 213 million to SAR 183 million. The previous quarter reported a net underwriting loss of (SAR 10.6 million), where the current quarter reported an income of (SAR 21.4 million).

2) A decrease in other general and administrative expenses by 14.44% (SAR 1.9 million).

The company’s reported loss before Zakat for the period (SAR 24.9 million) that has increased compared to the same period of the previous year (SAR 7.9 million) is mainly due to the following reasons:

1) An increase in net incurred claims by 35.16% (SAR 102.8 million), mainly as a result of technical reserves estimates increases, which resulted in lower net underwriting income compared to the previous period of the same fiscal year.

2) An Increase in policy acquisition costs by 10.9% ( SAR 3.2 million), along with an increase in other underwriting expenses.

3) An increase in staff costs and other general and administrative expenses, by 5% and 14.6%, respectively. ( SAR 1.9 and 3.1 million).

Additional Information:

The accumulated losses reached SAR 151.8 million by the end of the period ended at June 30, 2022 compared to SAR 120.4 million losses as at December 31, 2021.

Total comprehensive loss is SAR 33.6 million for the period, compared to the same period last fiscal year that is SAR 14.05 million loss.

The earnings / (loss) per share for the current period and the comparative period 2021 was calculated by dividing the net loss attributable to shareholders after zakat, which in the current period ended at June 30, 2022 amounted to SAR 31.4 million, compared to SAR 14.3 in the same period of 2021, by the weighted average number outstanding ordinary shares of 50,000,000 share.