Alinma Tokio achieves net profit of SR3.7 mln during Q3

Alinma Tokio Marine achieved a net profit before zakat during the third quarter of SR3.7 million, compared to a loss of SR3.8 million in the same quarter of last year.

This came after the announcement on Sunday of the preliminary financial results for the period ending on 30-09-2022 (nine months).

The net profit of shareholders’ fund’s investments in the third quarter amounted to SR685 thousand, compared to SR121 thousand in the same quarter of the previous year.

The net profit of policyholders’ investments in the third quarter amounted to SR4.7 million, compared to SR3.9 million in the same quarter of the previous year, a growth of 22%.

As for the net profit before zakat in the 9-month period, it amounted to SR6.2 million, compared to a loss of SR7.1 million in the same period last year.

The gross shareholders’ equity “without minority rights” in the current period amounted to SR192.102 million, compared to SR192.101 million in the same period last year.

Profits per share in the current period amounted to SR0.15, compared to a loss of SR0.31 in the same period last year.

The reason for the increase (decrease) in the net profit during the current quarter compared to the same quarter of last year is:

Having net Profit for the current quarter compared to the net loss same quarter of the previous year is mainly due to an increase in GWP by 33.42%, increase in NWP by 8.09%, increase in NEP by 29.35%, and the increase in Net profit of policy holders’ investment by 21.88%. The above positive contributors to have the net profit before zakat have been partially offset with the increase in Net incurred claims by 40.43%, the increase in Policy acquisition costs by 43.27%, as well as the increase in General and administrative expenses by 29.79%.

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 increase in net Profit for the current quarter compared to previous quarter is mainly due to the decrease in Net incurred claims by 10.56%, having a net profit of policy holders’ investment of SR 4,768 thousand (Q2 2022 Net loss of SR 9,901 thousand) and having a net profit of shareholders capital investment of SR 685 thousand (Q2 2022 Net loss of SR 397 thousand) The above positive contributors to have more net profit before zakat have been partially offset with the decrease in GWP by 38.75% as well as the decrease in NWP by 14.07%.

The reason for the increase (decrease) in the net profit during the current period compared to the same period of last year is:

Having net Profit for the current period compared to a net loss in the same period of the previous year is mainly due to an Increase in GWP of 40.90%, an increase in NWP of 32.81%, and an increase in NEP of 34.69%. A reversal in the Provision for doubtful receivables by SR3,650 thousand (Same period last year: increase the same provision by SR3,793 thousand). The above positive contributors to have the net profit before zakat have been partially offset with the increase in Net incurred claims by 39.71%, decrease in net profit of policy holders’ investment by 61.91%, decrease in net profit of Shareholders capital investment by 8.40% and the increase in General and administrative expenses by 16.52%.

The joint independent auditors report on the annual financial statements states that the financial statements present fairly, in all material respects, the financial position of the Company and its financial performance and its cash flows for the year ended in accordance with International Financial Reporting Standards “IFRSS” that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants “SOCPA”.

Certain prior period figures have been reclassified to conform to the presentation in the current period.

The profit per share is calculated on income after Zakat and Income Tax. The profit per share for the current period is SR 0.15 versus loss per share of SR 0.31 for the same period last year. The gross of shareholder’s equity (there are no minority rights) for the current period amounted to SR 192,102 thousand compared with SR 192,101 thousand for the same period last year which reflects an increase of SR1 thousand. The accumulated losses as at Q3 2022 are SR 108,328 thousand which is 36.1% of the Paid-Up Capital. The gross comprehensive income for the current period is SR 5,193 thousand compared with gross comprehensive loss of SR 9,662 thousand for the same period last year