Malath Insurance achieve net profit of SR995 thousand during Q3

Malath Cooperative Insurance Company achieved a net profit before zakat during the third quarter of SR995 thousand, compared to a loss of SR33.4 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’ funds’ investments in the third quarter amounted to SR4 million, compared to SR4.7 million in the same quarter of the previous year, a decrease of 14.6%.
The net profit of policyholders’ investments in the third quarter amounted to SR5.1 million, compared to SR2.3 million in the same quarter of the previous year, a growth of 116%.
As for the net loss before zakat in the 9-month period, it amounted to SR24 million, compared to SR41.3 million in the same period last year, down 42%.
The gross shareholders’ equity “without minority rights” in the current period amounted to SR338.2 million, compared to SR412 million in the same period last year, a decrease of 18%.
The loss per share in the current period is SR0.65, compared to SR1.02 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 reason for the decrease in the loss and turning to profit before Zakat compared to the same quarter of previous year is due to:
1) An increase in net earned premium by 4.35% (SR 8.9 million), and other underwriting income by 2300% (SR 9.9 million).
2) Reduction in net claims incurred by 6.8% (SR 12.9 million).
3) Increase in investment income by 29.17% (SR 2 million).
4) General and administrative expenses decreased for the current quarter by 21.13% (SR 2.5 million),
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 decrease in the loss and turning to profit before Zakat compared to the previous quarter is due to:
1) Increase in net underwriting income by 7.81% SR 1.6 million. That is mainly originated from the shrink in net claims incurred that decreased from SR 182.7 million to SR 177.1 million. The previous quarter reported a net underwriting income of SR 21.4 million, where the current quarter reported an income of SR 23.1 million.
2) Decrease in other general and administrative expenses by 16.67% SR 1.8 million.
3) Decrease in employee costs by 6.50% nearly SR 1.4 million.
4) Increase in investment income by 33.46% nearly SR 2.3 million.
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 company’s reported loss before Zakat for the period (SR 23.9 million) that has decreased compared to the same period of the previous year (SR 41.3 million). A loss reduction by 42.05% is mainly due to the following reasons:
1) An increase in net earned premium by 17.66% (SR 99.16 million), along with an increase in other underwriting income that resulted in increased net underwriting income compared to the previous period of the same fiscal year.
2) Increases in investment income by 87.6% (SR 18.9 million).
3) Decrease in Provision for doubtful debts expense, by 55.37% (SR 5.6).
Certain comparative figures have been reclassified to conform to the presentation of the current period. These changes have been made to better reflect the balances and transactions in the financial statements of the Company. The Company asserts that there is no financial impact of these re-classifications on Net Results from Insurance Operations and Net Income.
The accumulated losses reached SR 153.01 million by the end of the period ended at September 30, 2022 compared to SR 120.4 million losses as at December 31, 2021.
Gross comprehensive loss is SR 33.3 million for the period, compared to the same period last fiscal year that is SR 48.4 million losses.
The profits / (loss) per share for the current period and the comparative period 2021 was calculated by dividing the net loss attributable to shareholders after zakat, which in the current period ended at September 30, 2022 amounted to SR 32.6 million, compared to SR 51 million in the same period of 2021, by the weighted average number outstanding ordinary shares of 50,000,000 share.