Tawuniya profits increase to SR138 mln during Q3, up 53.5%

The Tawuniya Insurance Company revealed that the net profit before zakat during the third quarter increased to SR138 million, compared to SR90 million in the same quarter of last year, at a rate of 53.5%.
This came following the announcement on Tuesday of the interim consolidated 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 SR26.9 million, compared to SR45 million in the same quarter of the previous year, down 40.2%.
The net profit of policyholders’ investments in the third quarter amounted to SR46.4 million, compared to SR22.5 million in the same quarter of the previous year, a growth of 106%.
As for the net profit before zakat in the 9-month period, it amounted to SR390.2 million, compared to SR336.6 million in the same period last year, an increase of 16%.
The gross shareholders’ equity “without minority rights” in the current period amounted to SR3.24 billion, compared to SR2.94 billion in the same period last year, an increase of 10%.
Profits per share in the current period reached SR2.58, compared to SR2.14 in the same period last year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
Net Profit before Zakat for the current quarter is SR 138,039K, compared to SR 89,908K for the same quarter of previous year. The reasons for the increase in net profit before zakat are mainly attributable to an increase in net underwriting income by SR 63,802K, increase in net investment profits by SR 5,819K, offset by increase in the net other operating expenses by SR 14,253K, In addition, increase in policyholders’ share of insurance operations surplus by SR 7,237K.
The increase of SR 63,802k in net underwriting income is mainly due to the following:
– Favourable increase in net earned premiums by SR 603,604k, an increase of 29.85%, offset by;
– Increase in net claims incurred by SR 434,013K, an increase of 25.95%.
– Increase in insurers share distribution costs by SR 43,732K, an increase of 220.60%.
– Increase in policy acquisition costs by SR 37,440K, an increase of 44.81%.
– Increase in other underwriting expenses by SR 25,023K, an increase of 101.85%.
Net Profit before Zakat for the current quarter is 138,039K, compared to SR 210,699K for the previous quarter. The reasons for the decrease in net profit before zakat are mainly attributable to a decrease in net underwriting income by SR 48,196K, decrease in net investment profits by SR 10,643K, increase in the net other operating expenses by SR 22,258K, offset by decrease in policyholders’ share of insurance operations surplus by SR 8,437K.
The decrease of SR 48,196k in net underwriting income is mainly due to the following:
– Increase in net claims incurred by SR 181,721K, an increase of 9.44%.
– Increase in other underwriting expenses by SR 2,143K, an increase of 4.52%. offset by;
– Favourable increase in net earned premiums by SR 73,179k, an increase of 2.87%.
– Favourable decrease in insurers share distribution costs by SR 62,815K, an increase of 49.71%.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
Net Profit before Zakat for the current period is SR 390,230K, compared to SR 336,656K for the same period last year. The reasons for the increase in net profit before Zakat are mainly attributable to an increase in net underwriting income by SR 149,469K, offset by decrease in net investment profits by SR 6,478K, increase in the net other operating expenses by SR 76,612K, In addition, increase in policyholders’ share of insurance operations surplus by SR 12,805K.
The increase of SR 149,469k in net underwriting income is mainly due to the following:
– Favourable increase in net earned premiums by SR 1,606,103k, an increase of 27.63%. offset by;
– Increase in net claims incurred by SR 1,124,898K, an increase of 23.15%.
– Increase in insurers share distribution costs by SR 202,482K, an increase of 572.13%.
– Increase in policy acquisition costs by SR 88,386K, an increase of 35.36%.
– Increase in other underwriting expenses by SR 43,424K, an increase of 48.36%.
Certain of the prior period amounts have been reclassified to conform to the presentation in the current period. These changes were made for better presentation of balances and transactions in the interim condensed consolidated financial statements of the Company.
EPS calculated based on Net Profit after Zakat.