Al Sagr Insurance records losses before zakat of SR35 mln during Q2, increase of 269%

Al Sagr Cooperative Insurance Company recorded losses before zakat of SR35 million during the second quarter, compared to losses of SR9.5 million in the same quarter of last year, an increase of 269%.
This came after the announcement on Monday of the preliminary financial results for the period ending on 30.06.2022 (6 months).
The net profit of shareholders’ investments in the second quarter amounted to SR1.6 million, compared to SR9.3 million in the same quarter of the previous year, a decline of 83%.
The net loss before zakat in the 6-month period amounted to SR61 million, compared to SR49 million in the same period of the previous year, an increase of 23%.
The loss per share in the current period amounted to SR1.58, compared to a loss of SR1.3 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 reason for the increase in net loss before Zakat for the current quarter compared the same quarter last year is due to an increase in net claims and other benefits incurred by SR54.9 million representing an increase of 88%, the decrease in investment income from insurance operations portfolio and shareholders’ portfolio by SR5.9 million representing a decline of 98%. This increase in claims and reduction in investment income was partially offset by an increase in net premiums earned by SR 38.0 million (an increase of 54% only).
The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The reason for the increase in net loss before Zakat for the current quarter compared to the previous quarter is due to an increase in net claims and other benefits incurred by SR 16.3 million representing an increase of 16%, a decrease in investment income from insurance operations portfolio and shareholders’ portfolio by SR11 million. This increase in claims and reduction in investment income was partially offset by the increase in net premiums earned by SR14.0 million (an increase of 15% only).
The reason for the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
The reason for the increase in net loss before Zakat for the current period compared to the same period last year is the increase in net claims and other benefits incurred by SR57.5 million representing an increase of 36%, increase in general and administrative expenses of both insurance operations portfolio and shareholders’ portfolio by SR5.2 million representing an increase of 15%.
This increase in claims and general and admin expenses was partially offset with increase in net premiums earned by SR57.7 million (an increase of 39%).
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 annual financial statements of the Company.
The Loss per Share is calculated on Profit/Loss after Zakat and Income Tax. The Loss Per Share for the current period is SR1.58 versus Loss Per Share of SR1.30 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 gross of shareholder’s equity (there are no minority rights) as at the end of the current period amounted to SR138.9 million compared with SR242.6 million as at the end of the same period last year, which reflects a decline of 42.7%. The Accumulated Losses as at the end of the current period is SR 260.1 million which is 65% of the Paid-Up Capital. The total comprehensive loss for the current quarter is SR 40.6 million compared with Comprehensive loss of SR 6.4 million for the same quarter last year and compared with Comprehensive Loss of SR 33.7 million for the previous quarter. The total Comprehensive Loss for the current period is SR 74.3 million compared with gross Comprehensive Loss of SR 45.2 million for the same period last year.