Saudi Re profits reaches 1132.6% during Q2 to SAR 66 million

The Saudi Reinsurance Company revealed an increase in net profit before zakat during the second quarter to SAR 66 million, compared to SAR 5.3 million in the same quarter of last year, by 1132.6%. This came after the announcement on Sunday of the interim financial results for the period ended on June 30 (six months).

Gross Written Premiums (GWP) in the second quarter amounted to SAR 146.3 million, compared to SAR 321.4 million in the same quarter of the previous year, a decline of 54.4%.

As for the net profit before zakat in the 6-month period, it amounted to SAR 81.9 million, compared to SAR 34.8 million in the same period last year, with a growth of 134.8%.

The total shareholders’ equity “without minority rights” in the current period amounted to 1.09 billion riyals, compared to SAR 966 million in the same period last year, an increase of 13.2%.

Earnings per share in the current period reached SAR 0.8, compared to SAR 0.32 in the same period last year.

The company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application which has changed the presentation for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. In addition the revenue and expenses recognition has impacted the financial results.

The reasons for an increase of net income before Zakat and Taxes:

– An increase of reinsurance service result of 384% compared with same quarter of previous year

– Net investment income of SAR 15.3 million compared with net loss of SAR 9 million due to investment classes’ reallocation, and interest rate hikes

– An increase of share of profit of equity accounted investee by 31% during this quarter of SAR 21.3 million compared with SAR 2.6 million during same quarter of previous year

The reasons for an increase of net income before Zakat and Taxes:

– An increase in reinsurance service result of 494% compared with previous quarter

– An increase in net investment income of 37% compared with previous quarter

– An increase of share of profit of equity accounted investee by 127% amounting to SAR 21.3 million compared with SAR 9.4 million in the previous quarter.

The reasons for an increase of net income before Zakat and Taxes:

– An increase of reinsurance service result of 397% compared with same period of last year

– Net investment income of SAR 26.4 million compared with net loss of SAR 6.9 million for the same period of the last year, due to investment classes’ reallocation, and interest rate hikes

– An increase of share of profit of equity accounted investee by 41% reaching SAR 30.6 million compared with SAR 21.6 million during same period of last year.