Walaa Insurance losses decline to 16.2 mln during Q3, down 51%

Walaa Cooperative Insurance Company recorded a net loss before zakat during the third quarter of 16.2 million riyals, compared to a loss of 33.1 million riyals in the same quarter of last year, at a rate of 51%.
This came after the announcement on Wednesday 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 SR8.2 million, compared to SR10.1 million in the same quarter of the previous year, a decrease of 18.7%.
The net profit of policyholders’ investments in the third quarter amounted to SR2.6 million, compared to SR603 thousand in the same quarter of the previous year, a growth of 342.2%.
In the 9-month period, the company recorded a net loss before zakat of SR43.8 million, compared to SR46.4 million in the same period last year, down 5%.
The gross shareholders’ equity “without minority rights” in the current period amounted to SR752.5 million, compared to SR869.5 million in the same period last year, a decrease of 13.4%.
The loss per share in the current period was SR0.8, compared to SR0.89 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:
The reason of Decrease in Net Loss before Zakat & Tax for the current quarter compared with Net Loss before Zakat & Tax of same quarter last year is due to increase in Net Premiums Earned by SR 68.44 million 25.36%, increase in Other Underwriting Income by SR 12.33 million 1755.98%, decrease in General & Administrative Expenses by SAR 3.06 million 7.65% and increase in Reinsurance Commission by SR 2.35 million 13.69%. This decrease of loss is partially offset with increase in Net Claims and Other Benefits Incurred by SR 46.37 million 19.29%, increase in Policy Acquisition Cost by SR 7.80 million 52.29%, increase in Other Underwriting Expenses by SR 5.26 million 17.55% and increase in additional premium reserves by SR 1.5 million 69.74%.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The reason of Net Loss before Zakat & Tax for the current quarter compared with Net Profit before Zakat & Tax of previous quarter is due to increase in Net Claims and other Benefits Incurred by SR 13.01 million 4.75%, increase in Allowance for Doubtful Debts by SR 29.83 million, increase in Additional Premium Reserve by SR 4.04 million 86.20%, increase in Policy Acquisition Costs by SR 2.49 million 12.30%, decrease in Reinsurance Commission by SR 2.04 million 9.45% and increase in Other Underwriting Expenses by SR 1.51 million 4.46%. This increase in costs and expenses is partially offset with increase in Investment and Commission Income by SR 13.07 million, increase in Other Underwriting Income by SR 9.76 million 298.81% and increase in Net Premiums Earned by SR 9.57 million 2.91%.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
The reason of decrease in Net Loss before Zakat & Tax for the current period compared with Net Loss before Zakat & Tax of previous period is due to increase in Net Premiums Earned by SR 192.16 million 25.73%, increase in Other Underwriting Income by SR 14.87 million 1016.40%, increase in Reinsurance Commission by SR 13.47 million 29.72% and increase in Investment and Commission Income by SR 3.54 million 6.14%. This increase in income is partially offset with increase in Net Claims and Other Benefits Incurred by SR 158.71 million 23.47%, increase in Other Underwriting Expenses by SAR 27.95 million 41.05%, increase in Policy Acquisition Costs by SR 19.02 million 44.52%, increase in Additional Premium Reserves by SR 14.64 million 91.10%, and increase in Allowance for Doubtful Debts by SR 2.80 million 19.50%.
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 condensed interim financial information of the Company. The Company asserts that there is no financial impact of these re-classifications on Net Results From Insurance Operations, Net Income and Equity.
The Loss/Earning Per Share is calculated on Loss/Profit after Zakat and Income Tax for the period. The Loss Per Share for the current period is SR 0.80 versus Loss Per Share of SR 0.89 for the same period of the previous year, which is calculated based on the weighted average number of ordinary shares outstanding during the period. The total of shareholder’s equity (there are no minority rights) for the current period amounted to SR 752,586 thousand compared with SR 810,773 thousand as at 31 December 2021, which reflects a decrease of 7.18%. The Accumulated Losses as at the end of the period is SR 92,590 thousand, which is 14.32% of the Paid-Up Capital. The Total Comprehensive Loss for the current quarter is SAR 15,157 thousand compared with total Comprehensive Loss of SR 41,067 thousand for the same quarter last year and compared with total Comprehensive Loss of SR 13,631 thousand for the previous quarter. The total Comprehensive Loss for the current period is SR 58,187 thousand compared with Total Comprehensive Loss of SR 46,756 thousand for the same period last year.