‎“MedGulf” records losses before zakat of SR324 mln during ‎‎2022, up 139%‎

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company “MedGulf” recorded losses before zakat of 324 million riyals during the year 2022 AD, compared to losses of 135.6 million riyals in the previous year, an increase of 139%. This came after the announcement today of the annual financial results ending in 31-12-2022.

The net profit of shareholders’ funds investments amounted to 64 million riyals during 2022, compared to 48 million riyals in 2021 / an increase of 34%.

The net profit of policyholders’ investments amounted to 1.7 million riyals during the year 2022, compared to 1.4 million riyals in the year 2021, with a growth of 22%.

The loss per share in the current year amounted to 3 riyals, compared to a loss of 1.34 riyals in the previous year.

The decrease in net profit was primarily due to underwriting performance in the vehicle business and some large accounts in the medical business. The overall loss percentage increased by 15%, with the medical business line loss percentage increasing by 10% and the vehicle business line loss percentage increasing by nearly 20%. In fiscal year 2022, an increase in redundancies was observed in both the medical and automotive lines, which, along with the assembly market driven by competitive prices on cars, was the main reason affecting profitability.

As mentioned in the external auditor’s report: “The audit report does not contain any qualifications, there is a focus on going concern due to the company’s performance and coverage of the solvency level index. However, the financial statements are prepared on a going concern basis. In this regard, the opinion remains unchanged

The company said that some items that were previously presented as general and administrative expenses have been reclassified to acquisition costs, based on the content and nature of those items. It includes part of Najm’s fees in addition to fees for Alam, the Central Bank of Saudi Arabia, and commissions for electronic brokers, and this is contained in the financial statements, indicating that the Board of Directors approved a plan to recover solvency, and it is expected to restore solvency levels until the end of 2023.