Al Sagr Insurance losses decline to 25.5 mln during Q1, down by 36%

Al Sagr Cooperative Insurance Company revealed that the net loss before zakat during the first quarter decreased to SR25.5 million, compared to a loss of SR39.8 million in the same quarter of last year by 36%.
This came after the announcement on Wednesday of the preliminary financial results for the period ending on 31.03.2022. (Three months).
The net profit of shareholders’ funds investments amounted to SR10.5 million during the first quarter, compared to SR3.7 million in the same quarter of the previous year, an increase of 182.2%.
The gross shareholders’ equity “without minority rights” amounted to SR179.5 million in the 3-month period, compared to SR249 million in the same period last year, down 27.8%.
The loss per share in the current period is SR0.67, compared to SR1.03 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 decrease in net losses before zakat for the current quarter compared with similar quarter last year is the increase in net earned premium by SR19.4 million (26%) and increase in investment and other income by SR6.2 million (92%).
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 increase in Net Losses before Zakat for the current quarter compared with previous quarter is increase in net claim incurred by SR9.2 million (10.17%), Additional premium reserves and other technical reserves by SR 8.3 million (508%) and reduction in investment and other income by SR15.5 million (54%).
The independent auditors’ report on the interim condensed financial information states that the accompanying financial information present fairly, in all material respects, in accordance with the International Financial Reporting Standards (IFRS) adopted in the Kingdom of Saudi Arabia and other standards and statements Issued by the Saudi Organization for Certified Public Accountants (“SOCPA”) (collectively referred to as “the International Financial Reporting Standards as approved in the Kingdom of Saudi Arabia”).
Certain prior period amounts have been reclassified for consistency with the current period presentation only. These changes were made for better presentation of the balances and transactions in quarterly financial statements of the Company.
The Loss per share is calculated on the total losses for the quarter attributable to shareholders. The Loss per Share for the current quarter is SR0.67 versus Loss per Share of SR1.03 for the same quarter 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) as at the end of the current period amounted to SR179.6 million compared with SR249.0 million as at the end of the same period last year, which reflects a decline of 27.89%.
The Accumulated Losses as at the end of the current period is SR223.7 million which is 55.95% of the Paid-Up Capital. The Total Comprehensive Loss for the current quarter is SR33.69 million compared with Comprehensive Loss of SR38.7 million for the same quarter last year and compared with Comprehensive loss of SR13.6 million for the previous quarter.
Hence, the company is subjected to Capital Market Authority’s (CMA) regulations regarding listed companies with accumulated losses exceeded 50% of capital.