Enaya losses decline by 86.4% to SAR 8 mln at the end of 2022

Saudi Enaya Cooperative Insurance Co. revealed that the net loss before zakat decreased during the year ending on December 31, 2022, to SAR 8.1 million, compared to SAR 58 million in the previous year, at a rate of 86.4%. 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 5.3 million during the year ending on December 31, 2022, compared to SAR 8.9 million in the previous year, a decrease of 40.7%.

The total shareholders’ equity “without minority rights” in the current year amounted to 169.4 million riyals, compared to SAR 58.7 million in the previous year, with a growth of 188.4%.

The loss per share reached SAR 0.7 in the current year, compared to SAR 4.13 in the previous year.

The major reasons for the Net Loss before Zakat amounting to SAR 8,135K for the year ended 31December 2022 compared to the Net Loss before Zakat amounting to SAR 57,985K for the year ended 31December 2021 are as follows:

-Favorable Increase in Underwriting results; Net Underwriting income of SAR 17,826K compared to the Net Underwriting Loss of SAR 21,746 in the previous year, a favorable movement of SAR 39,572K. This was driven by a significant increase in Net Premiums Earned to SAR 227,647K in current year from SAR 177,279K in the previous year, an increase of 28.41%. Further, the release of premium deficiency reserve by SAR 15,248K also contributed positively to the underwriting results, representing a change of 176.31% (2022: SAR 15,248K reversal of provision,2021: SAR 19,982K provision).

-Decrease in General and administrative expenses to SAR 38,734K compared with SAR 47,948K in the previous year, a decrease of 19.22%.

– Increase in other income by SAR 7,201K (2022: SAR 7,299K,2021: SAR 98K), mainly driven by increase in share of Umrah income.

The above improvements were partially offset with the following:

-Decrease in investment by SAR 3,666K, representing a decrease of 40.78% (2022: SAR 5,324K, 2021: SAR 8,990K).

Additional Information:

1- Total comprehensive loss for the year ended 31 December 2022 is SR 8,407K compared to a total comprehensive loss of SR 62,047K for the year ended 31 December 2021, representing an improvement of 86.45%.

2- Total shareholders’ equity (there is no minority interest) as at 31 December 2022 amounted to SR 169,470K compared to SR 58,755K as at 31 December 2021, representing an increase of 188.44%.

3- Total accumulated losses as at 31 December 2022 is SR 60,530K, representing 26.32% of share capital, as compared to SR 91,245K accumulated loss as at 31 December 2021, representing 60.83% of share capital.

4- Loss Per Share is calculated on net loss after Zakat, and before Comprehensive income. Loss per share for the year ended 31 December 2022 is SR (0.70) per share based on 13,642K weighted average number of outstanding shares, as compared to SR (4.13) per share for the year ended 31 December 2021 based on 15,000K weighted average number of outstanding shares.