Arabian Shield profits increase to SR16.7 mln during Q3, by 45%

The Arabian Shield Cooperative Insurance Company revealed that the net profit before zakat during the third quarter increased to SR16.7 million, compared to SR11.5 million in the same quarter of last year, by 45%,

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 SR6.4 million, compared to SR4.2 million in the same quarter of the previous year, a growth of 52.6%.

The net profit of policyholders’ investments in the third quarter amounted to SR2.8 million, compared to SR693 thousand in the same quarter of the previous year, an increase of 315.5%.

As for the net profit before zakat in the 9-month period, it amounted to SR33.1 million, compared to SR34.8 million in the same period last year, a decrease of 5%.

The gross shareholders’ equity “without minority rights” in the current period amounted to SR1.10 billion, compared to SR492.9 million in the same period last year, an increase of 124.5%.

Profits per share in the current period reached SR0.3, compared to SR0.62 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 the last year is:

The increase in net profit for the quarter compared with the same quarter last year is due to an increase in net earned premium by 82%, an increase in earned commission income by 6% and an increase in investment income by 90% which was offset by an increase in net incurred claims by 69%, increase in other underwriting costs by 288% and increase in operating & administrative expenses by 31%.

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 quarter compared with the previous quarter is due to an increase in net earned premium by 5%, an increase in earned commission income by 4%, a decrease in operating & administrative expenses by 26%, and an increase in investment income by 107% which was offset by an increase in net incurred claims by 8% and increase in other underwriting costs by 18%.

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 decrease in net profit for the period compared with the same period last year is due to a decrease in earned commission income by 7%, an increase in net incurred claims by 59%, an increase in other underwriting costs by 1642% and an increase in operating & administrative expenses by 24% which was offset by an increase in net earned premium by 89% and increase in investment income by 52%.

The Financial Statements have been prepared in accordance with International Accounting Standard 34 endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”), consistent with the Company’s accounting policies. Comparatives have been restated.

Gross Comprehensive Income for the quarter was SR 8,725 thousand compared to SR 8,844 thousand for the equivalent quarter from the previous year, decreased by 1% and compared to SR 5,171 thousand for the previous quarter, increased by 69%.

Gross Comprehensive Income for the period was SR 21,165 thousand compared to SR 31,021 thousand for the equivalent period from the previous year, which decreased by 32%.

Gross Shareholders’ Equity by end of the current period is SR 1,107,042 thousand compared to SR 492,925 thousand for the equivalent period from the previous year, increased by 125% (No minority interest).

The profits after Zakat and Income Tax for the current quarter reached SR 12,250 thousand compared to SR 8,516 thousand for the same quarter of last year, an increase of 44%.

The profits per share (EPS) for the current quarter are SR 0.19 per share versus SR 0.21 per share for the same quarter last year.

The profits after Zakat and Income Tax for the current period reached SR 19,008 thousand compared to SR 24,993 thousand for the same period of last year, a decrease of 24%.

The profits per share (EPS) for the current period are SR 0.30 per share versus SR 0.62 per share for the same period last year.

The authorized, issued, and fully paid share capital of the Company is SR 638,524,620 consisting of 63,852,462 shares each with a nominal value of SR10.