Chubb’s profits fell to SR5 million in Q1, by 32.2%‎

Chubb Arabia for Cooperative Insurance revealed a decline in net profit before zakat during the first quarter to 5.1 million riyals, compared to 7.6 million riyals in the same quarter of last year, by 32.2%. This came after today’s announcement of the preliminary financial results for the period ending in 2023- 03-31 (three months).

The total written premiums (GWP) in the first quarter amounted to 106.9 million riyals, compared to 87.8 million riyals in the same quarter of the previous year, an increase of 21.7%.

The total shareholders’ equity “without minority rights” in the current period amounted to 399.2 million riyals, compared to 390 million riyals in the same period last year, an increase of 2.3%.

Earnings per share in the current period reached 0.13 riyals, compared to 0.23 riyals in the same period last year.

The company applied International Financial Reporting Standard 17 (Insurance Contracts) and International Financial Reporting Standard 9 (Financial Instruments), in accordance with the standards approved in the Kingdom of Saudi Arabia, as of January 1, 2023 and with retrospective effect, which led to a fundamental change in presenting the financial results of all Periods starting from the first quarter of 2023 and re-measurement of similar periods from previous years according to the new standards. As a result, the company announced the financial results according to the data available under IFRS 17 and IFRS 9, and the data that is not compatible with the new standards was indicated by the number “0”.

The following detailed explanation covers the financial statements announced above and the updated financial statements attached to this announcement, which are consistent with the way the financial results are presented in accordance with the new standards.

The reason for the decrease in net profit before zakat and income tax for the current quarter by 2,461 thousand Saudi riyals compared to the same quarter of the previous year is due to the following main reasons:

An improvement in the results of insurance revenues amounting to 3,649 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 5%. And an increase in net income from reinsurance contracts by 58,451 thousand Saudi riyals, an increase of 145%. These changes were offset by a partial increase in insurance service expenses by 69,234 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 286%.

An increase in net investment income by 1,770 thousand Saudi riyals compared to the same quarter of the previous year, an increase of 73%.

An increase in other net income by SAR 4,000 thousand compared to the same quarter of the previous year, an increase of 2022%.

These changes were offset by a partial increase in net operating expenses by 581 thousand Saudi riyals, an increase of 21% compared to the same quarter of the previous year, and an increase in net financial expenses by 517 thousand Saudi riyals, an increase of 326% compared to the previous quarter in the previous year.

The company applied International Financial Reporting Standard 17 (Insurance Contracts) and International Financial Reporting Standard 9 (Financial Instruments), in accordance with the standards approved in the Kingdom of Saudi Arabia, as of January 1, 2023 and with retrospective effect, which led to a fundamental change in presenting the financial results of all Periods starting from the first quarter of 2023 and re-measurement of similar periods from previous years according to the new standards. As a result, the company announced the financial results according to the data available under IFRS 17 and IFRS 9, and the data that is not compatible with the new standards was indicated by the number “0”.

Please see the announcement’s attachments for additional details of the financial results, which are consistent with the way the financial statements are presented in accordance with the new standards for insurance companies.

1- Earnings per share were calculated on the basis of net profit after zakat

2- The total shareholders’ equity as of 31/03/2023 amounted to about 399,287 million Saudi riyals, compared to 390,062 million Saudi riyals from the same quarter of the previous year, an increase of 2%.

3- The total comprehensive income for the current quarter amounted to 4,485 thousand Saudi riyals compared to the same quarter of the previous year by 4,277 thousand Saudi riyals, an increase of 5%.