Wataniya Insurance Losses Rise to SR12.8 mln during Q2, by 81%

The Wataniya Insurance Company recorded a net loss before zakat in the second quarter of SR12.8 million, compared to a loss of SR7.11 million in the same quarter of last year, at a rate of 80.7%.
This came after the announcement on Wednesday of the preliminary financial results for the period ending on 30-06-2022 (six months).
The net investment losses of shareholders’ funds in the second quarter amounted to SR1.4 million, compared to a profit of 841 thousand riyals in the same quarter of the previous year.
The net loss before zakat in the 6-month period amounted to SR36.9 million, compared to SR25.6 million in the same period of the previous year, an increase of 44.3%.
The gross shareholders’ equity “without minority rights” in the 6-month period amounted to SR360.6 million, compared to SR237.9 million in the same period last year, a growth of 51.5%.
The loss per share in the current period is SR1.12, compared to SR0.91 in the same period last year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
The increase in loss in current quarter compared to loss in the same quarter last year is due to increase in incurred claims.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The decrease in loss in current quarter compared to loss in previous quarter is due to the decrease in the net incurred claims and other operating expenses.
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 increase in loss in current period compared to the loss in same period last year is due to decrease in the net underwriting income.
The auditors have reviewed the financial statements and have issued an unmodified report there on the financial statements of the Company for the six-month period ended June 30, 2021 and for the year ended December 31, 2021 were respectively reviewed and audited jointly by Ernst & Young & Co. Public Accountants and PricewaterhouseCoopers Public Accountants who had expressed an unqualified conclusion and opinion thereon vide their reports dated August 17, 2021 and March 20, 2022 respectively.
Following comparative figures have been reclassified and regrouped on the face of statement of income to confirm to the current year presentation.
1. Changes in unearned premiums which was previously reported as SR(74,979) has been now restated as SR(139,176).
2. Changes in reinsurers’ share of unearned premiums which was previously reported as nil has now been restated as SR64,197.
3. Changes in outstanding claims which was previously reported as SR 10,259 has been now restated as SR55,258.
4. Changes in reinsurance share of outstanding claims which was previously reported as nil has now been restated as SR(44,999).
5. Changes in claims incurred but not reported which was previously reported as SR (1,771) has been now restated as SR(5,388).
6. Changes in reinsurance share of claims incurred but not reported which was previously reported as nil has now been restated as SR3,617
Such reclassifications have not resulted in any additional impact on equity, income, or total comprehensive income for comparative the period.
The gross of shareholders’ equity (there are no minority rights) as at the end of the current period is SR360,623 thousand compared with SR237,992 thousand for the same period last year (52% increase).
The accumulated losses as at the end of the current period is SR(54,731) thousands which is 13.68% of the paid up capital.
The gross comprehensive loss for the current quarter is SR(13,950) thousand compared to the gross comprehensive loss for same quarter last year of SR(8,240) thousand (69% increase).
The gross comprehensive loss for the current period is SR(38,620) thousand compared to the gross comprehensive loss for same period last year of SR(27,840) thousand (39% increase).