Buruj Cooperative profits increase SR5.9 mln in Q3

The financial statements of Buruj Cooperative Insurance Company revealed that the company turned to profitability in the third quarter of this year, with a value of SR5.882 million, compared to losses for the same period of the previous year, which amounted to SR5.796 million.
The company said in a statement to the Saudi market, Tadawul, on Sunday that the positive shift in results during the comparison periods is due to the increase in the net oversubscription by 109.39%.
The increase in net underwriting surplus is attributed to an increase in net earned premium by 178.7% in addition to a favorable decrease in the change in premium deficiency reserve and other technical reserves combined by 65.57%. Also, the reason for profit this quarter is due to an increase in profits on the investments of insurance and shareholders operations combined by 17.77%.
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 profit this quarter compared to a loss in the previous quarter is attributed to the underwriting surplus amount of SR 10,255,988 compared to the underwriting deficit amount of SR 4,078,352 in the previous quarter. The net underwriting surplus is attributed to an increase in net earned premiums and other underwriting income by 6.31% & 153.3% respectively, in addition to the favorable decrease in net incurred claims by 7.43%. Also, the reason for profit this quarter compared to the previous quarter is due to the reversal of doubtful debt provision amount of SR 1,796,587 compared to an allowance amount of SR 2,294,367 in the previous quarter.
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 losses for the current period compared to the same period of the previous year is attributed to the net underwriting deficit amount of SR 13,884,848 compared to the net underwriting surplus amount of SR 28,147,768 in the same period of the previous year. The net underwriting deficit is attributed to the increase in net incurred claims by 266.42% despite the increase in net earned premiums by 150.66%. Also, the change in premium deficiency reserve and other technical reserves for the current period increased by 539.75% compared to the same period of the previous year. In addition to the increase in policy acquisition costs and other underwriting expenses by 116.85% and 166.98% respectively.
Loss or profits per share have been calculated based on the net result after Zakat.