Burouj Insurance records losses before zakat of SAR 32.6 mln at the end of 2022

Buruj Cooperative Insurance Company recorded losses before Zakat of SAR 32.6 million during the year 2022, compared to a profit of SAR 16 million in 2021. This came after today’s announcement of the annual financial results ending on 12-31-2022.

The net profit of shareholders’ investments amounted to SAR 16 million during the year ending on December 31, 2022, compared to SAR 23 million in the previous year, a decline of 30%.

The net profit of Policy Holders Investment amounted to SAR 10 million during the year ending on December 31, 2022, compared to SAR 17 million in the previous year, a decrease of 40%.

Total Share Holders’ Equity (after Deducting Minority Equity), amounted to SAR 395 million in the current year, compared to SAR 442.4 million in the previous year, a decrease of 11%.

The loss per share in the current year amounted to SAR 1.31, compared to a profit of SAR 0.14 in the previous year.

The reason for losses for the current year compared to profits in the last year is attributed to the decrease in net underwriting surplus by SAR 38,574,209.

The decrease in net underwriting surplus is attributed to the increase in net incurred claims by 260.7% despite the favourable increase in net earned premiums by 128.48%. In addition to the increase in policy acquisition costs and other underwriting expenses by 96.42% and 129.19%, respectively.

The Company said that the loss or earnings per share have been calculated based on the net result after Zakat.