GIG profits fell to SR33.8 mln during Q3, down 25%

The Gulf Insurance Group (GIG) revealed that the net profit before zakat decreased during the third quarter to SR33.8 million, compared to SR45.4 million in the same quarter of last year, by 25.4%.
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’ funds’ investments in the third quarter amounted to SR6.9 million, compared to SR5.4 million in the same quarter of the previous year, an increase of 26.7%.
The net profit of policyholders’ investments in the third quarter amounted to SR12.1 million, compared to SR9 million in the same quarter of the previous year, an increase of 34.2%.
As for the net profit before zakat in the 9-month period, it amounted to SR85.4 million, compared to SR124 million in the same period last year, a decrease of 31%.
The gross shareholders’ equity “without minority rights” in the current period amounted to 913.5 million riyals, compared to 977.4 million riyals in the same period last year, down 6.5%.
Profits per share in the current period reached SR1.38, compared to SR2.12 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 decrease in net profit before zakat by SR (11,582) thousands can be attributed to an overall decrease in insurance results of the company. The increase in net claims incurred by SR 39,242 thousand (mainly in Health & motor segment) has contributed to the decrease in net profit before zakat and tax compared to the same quarter in the previous year.
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 before zakat by SR 7,655 thousand compared to the previous period is attributed to an overall increase in the surplus from insurance operation from SR 1,327 thousand to SR 18,128 thousand mainly due to an increase in net earned premium by SR 16,695 thousand as compared to last 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 decrease in net profit before zakat by SR (38,721) thousands is attributed mainly due to a decrease in insurance results of the company which decreased from SR 88,287 thousand in the previous period to SR 27,386 thousand in the current period. This decrease is mainly due to deterioration in insurance results for motor insurance caused by an unprecedented increase in the frequency of accidents.
The external auditors’ interim review report on the financial statements mentions that the financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia.
“The profits per share (“EPS”) for the current quarter is SR 0.53 per share versus SR 0.83 per share same quarter last year. Profits per share have been calculated based on net income after zakat. The gross of shareholder’s equity (there are no minority rights) for the current period amounted to SR 913,553 thousand compared with SR 977,474 thousand for the same period last year, which is a decrease of 6.5%. The retained earnings as of the end of the period are SR 368,491 thousand which is 73.7% of the paid-up capital.
The gross comprehensive income (loss) for policyholders for the current quarter is SR (11,761) thousand, compared to SR 1,333 thousand for the same quarter last year, compared to income(loss) of SR (18,706) thousand for the previous quarter.
The gross comprehensive income (loss) for policyholders for the current period is SR (49,473) thousands, compared to SR 1,700 thousand for the same period last year.
The gross comprehensive income for shareholders for the current quarter is SR 10,353 thousand, compared to SR 41,905 thousand for the same quarter last year, compared to SAR (3,370) thousand for the previous quarter. The gross comprehensive income for the shareholders for the current period is SR 22,922 thousand, compared to SR 116,378 thousand for the same period last year.
The profits after Zakat and Income Tax for the current period decreased to SR 68,893 thousand compared to SR 106,167 thousand for the same period of last year, a decrease of 35.11%. The External Auditor reviewed the financial statements and issued an Unqualified Audit Report.”