Friday, 29 March 2024

Walaa Insurance profits down 55.5% to SR4.6 mln in Q2

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The net profit after zakat and tax for Walaa Cooperative Insurance Co. fell during the second quarter to SR4.6 million, compared to SR10.5 million in the same quarter of last year, at a rate of 55.5%.

This came after Wednesday’s announcement of the preliminary financial results for the period ending 30.06.2022 (6 Months).

Profits per share in the current period reached SR0.53, compared to SR0.32 in the same period last year.

اقرأ المزيد

The reason of Decrease in Net profit before Zakat & Tax for the current quarter compared with Net Profit before Zakat & Tax of same quarter last year is due to increase in Net Claims and Other Benefits Incurred by SAR 52.55 million 23.75%, increase in Other Underwriting Expenses by SAR 17.00 million 101.46%, increase in Policy Acquisition Cost by SAR 6.74 million 49.95% and increase in General & Administrative Expenses by SAR 0.99 million 2.78%. This increase in expenses and costs is partially offset with increase Net Premiums Earned by SAR 71.82 million 27.95%, decrease in Additional Premium Reserves by SAR 2.28 million 94.96%, increase in Reinsurance Commission by SAR 3.58 million 19.91% and increase in Other Underwriting Income by SAR 3.23 million.

The reason of Net Profit before Zakat & Tax for the current quarter compared with Net Loss before Zakat & Tax of previous quarter is due to increase in Net Premiums Earned by SAR 56.92 million 20.94%, decrease in Allowance for Doubtful Debts by SAR 27.89 million 194.14%, increase in Reinsurance Commission by SAR 3.78 million 21.29%, increase in Other Underwriting Income by SAR 3.23 million 8729.73% and decrease in Additional Premium Reserve by SAR 8.58 million. This increase in income is partially offset with decrease in Investment and Commission Income by SAR 54.62 million, increase in Other Underwriting Expenses by SAR 6.75 million 25.01% and increase in Policy Acquisition Costs by SAR 1.44 million 7.69%.

The reason of increase in Net Loss before Zakat & Tax for the current period compared with Net Loss before Zakat & Tax of previous period is due to increase in Net Claims and Other Benefits Incurred by SAR 112.34 million 25.78%, increase in Other Underwriting Expenses by SAR 22.70 million 59.64%, increase in Additional Premium Reserves by SAR 13.15 million 94.37%, increase in Policy Acquisition Costs by SAR 11.20 million 40.27% and increase in General & Administrative Expenses by SAR 1.80 million 2.51%. This increase in expenses and costs is offset with increase in Net Premiums Earned by SAR 123.72 million 25.95%, increase in Reinsurance Commission by SAR 11.12 million 39.47%, increase in Investment and Commission Income by SAR 3.39 million 7.22%, increase in Other Underwriting Income by SAR 2.54 million 334.17% and decrease in Allowance for Doubtful Debts by SAR 5.16 million 85.96%.

Reclassification of Comparison Items:

Certain comparative figures have been reclassified to conform to the presentation of the current period. These changes have been made to better reflect the balances and transactions in the condensed interim financial information of the Company. The Company asserts that there is no financial impact of these re-classifications on Net Results From Insurance Operations, Net Income and Equity.

Additional Information:

The Loss/Earning Per Share is calculated on Loss/Profit after Zakat and Income Tax for the period. The Loss Per Share for the current period is SAR 0.53 versus Loss Per Share of SAR 0.32 for the same period of the previous year, which is calculated based on the weighted average number of ordinary shares outstanding during the period. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SAR 767,739 thousands compared with SAR 810,773 thousands as at 31 December 2021, which reflects a decrease of 5.31%. The Accumulated Losses as at the end of the period is SAR 74,879 thousands, which is 11.58% of the Paid-Up Capital. The Total Comprehensive Loss for the current quarter is SAR 13,631 thousands compared with total Comprehensive Income of SAR 16,997 thousands for the same quarter last year and compared with total Comprehensive Loss of SAR 29,400 thousands for the previous quarter. The total Comprehensive Loss for the current period is SAR 43,034 thousands compared with Total Comprehensive Loss of SAR 5,689 thousands for the same period last year.

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