‎“Enaya” profits jump 1000% during Q2, to 4.6 million riyals‎

Saudi Enaya Cooperative Insurance Company revealed that the net profit before zakat increased to 4.6 million riyals during the second quarter, compared to 420 thousand riyals in the same quarter of last year, an increase of 1.011%. This came after today’s announcement of the preliminary financial results for the period ending on June 30. (6 months).

The total insurance premiums written in the second quarter amounted to 58.4 million riyals, compared to 42.2 million riyals in the same quarter of last year, an increase of 38.1%.

Net profit before zakat during the 6-month period amounted to 9.8 million riyals, compared to a loss of 7.8 million riyals in the same period last year.

Earnings per share in the current period amounted to 0.39 riyals, compared to a loss of 0.66 riyals in the same period last year.

The company stated that it had adopted International Financial Reporting Standards 17 (insurance contracts) and International Financial Reporting Standards 9 (financial instruments), according to its adoption in the Kingdom of Saudi Arabia, starting from January 1, 2023, with retrospective application, which radically changed the presentation of financial results. For periods beginning in the first quarter of 2023 onwards with comparative periods restated under the new standards. As a result, the Company has disclosed only relevant financial information under the new standards in the above announcement. Items marked with a “-” are no longer presented in the new financial statements under IFRS 17 and IFRS 9.

The explanation below includes the relevant financial information contained in the above announcement along with an explanation of the new presentation of financial results accompanying this announcement.

The main reasons for net income before zakat and tax of SAR 4,667 thousand for the quarter ended June 30, 2023 compared to net income before zakat and tax of SAR 420 thousand for the quarter ending June 30, 2022 are as follows:

An increase in insurance revenues by 7,311 thousand riyals compared to the same quarter of the previous year, an increase of 13.51%.

– Net investment income increased by 3,477 thousand riyals compared to the same quarter of the previous year, an increase of 845.99%.

An increase in other revenues by 438 thousand riyals compared to the same quarter of the previous year, an increase of 15.54%.

The above improvements were affected in part by:

– An increase in insurance service expenses by 5,855 thousand riyals compared to the same quarter of the previous year, an increase of 10.73%.

– An increase in other operating expenses by 1,124 thousand riyals compared to the same quarter of the previous year, an increase of 47.51%.

Moreover, Gross Premium Written (GWP) increased by SAR 16,141 thousand compared to the same quarter of the previous year, an increase of 38.19%.

The explanation below includes the relevant financial information contained in the above announcement along with an explanation of the new presentation of the financial results accompanying this announcement.

The main reasons for net income before zakat and tax of SAR 4,667 thousand for the quarter ended 30 June 2023 compared to net income before zakat and tax of SAR 5,200 thousand for the quarter ending March 31, 2023 are as follows:

– An increase in insurance expenses expenses by 8,608 thousand Saudi riyals compared to the previous quarter of the current year, an increase of 16.61%.

– An increase in other operating expenses by 307 thousand Saudi riyals compared to the previous quarter of the current year, an increase of 9.64%.

The aforementioned decline was partly stemmed from the following:

– An increase in insurance revenues by 6,592 thousand riyals compared to the previous quarter of the current year, an increase of 12.02%.

An increase in other revenues by 1,647 thousand riyals compared to the previous quarter of the current year, an increase of 102.30%.

– Net investment income increased by 143 thousand riyals compared to the previous quarter of the current year, an increase of 3.82%.

Moreover, Gross Written Premiums (GWP) decreased by 13,211 thousand riyals compared to the previous quarter of the current year, a decrease of 18.45%.

The explanation below includes the relevant financial information contained in the above announcement along with an explanation of the new presentation of the financial results accompanying this announcement.

The main reasons for net income before zakat and tax amounting to 9,867 thousand riyals for the period ending on June 30, 2023 compared to net loss before zakat and tax amounting to -7,898 thousand riyals for the period ending on 30 June 2022 are as follows:

– An increase in insurance revenues by 7,052 thousand riyals compared to the same period of the previous year, an increase of 6.46%.

– Reducing insurance services expenses by 5,303 thousand Saudi riyals compared to the same period of the previous year, an increase of 4.51%.

– Net investment income increased by 6,112 thousand riyals compared to the same period of the previous year, an increase of 401.84%.

An increase in other revenues by 2,048 thousand riyals compared to the same period of the previous year, an increase of 72.65%.

The above improvements were affected in part by:

An increase in other operating expenses by 2,750 thousand riyals compared to the same period of the previous year, an increase of 70.10%.

Moreover, Gross Written Premiums (GWP) increased by 33,459 thousand riyals compared to the same period in the previous year, an increase of 34.65%.

The reason for the increase (decrease) in the net profit during the current quarter compared to the same quarter of the previous year is due to the company adopting International Financial Reporting Standards 17 (insurance contracts) and International Financial Reporting Standards 9 (financial instruments), according to their adoption in Saudi Arabia, Starting from January 1, 2023, with retrospective application, which fundamentally changes the presentation of financial results for periods starting from the first quarter of 2023 onwards with comparative periods restated under the new standards. As a result, the Company has disclosed only relevant financial information under the new standards in the above declaration. Items marked with a “-” are no longer presented in the new financial statements under IFRS 17 and IFRS 9.

The explanation below includes the relevant financial information contained in the above announcement along with an explanation of the new presentation of financial results accompanying this announcement.

The main reasons for net income before zakat and tax of SAR 4,667 thousand for the quarter ended June 30, 2023 compared to net income before zakat and tax of SAR 420 thousand for the quarter ending June 30, 2022 are as follows:

An increase in insurance revenues by 7,311 thousand riyals compared to the same quarter of the previous year, an increase of 13.51%.

– Net investment income increased by 3,477 thousand riyals compared to the same quarter of the previous year, an increase of 845.99%.

An increase in other revenues by 438 thousand riyals compared to the same quarter of the previous year, an increase of 15.54%.

The above improvements were affected in part by:

– An increase in insurance service expenses by 5,855 thousand riyals compared to the same quarter of the previous year, an increase of 10.73%.

– An increase in other operating expenses by 1,124 thousand riyals compared to the same quarter of the previous year, an increase of 47.51%.

Moreover, Gross Premium Written (GWP) increased by SAR 16,141 thousand compared to the same quarter of the previous year, an increase of 38.19%.

The reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter is due to the explanation below. The explanation below includes the relevant financial information contained in the above announcement, along with an explanation of the new presentation of the financial results attached to this announcement.

The main reasons for net income before zakat and tax amounting to 4,667 thousand riyals for the quarter ended 30 June 2023 compared to net income before zakat and tax amounting to 5,200 thousand riyals for the quarter ending 31 March 2023 are as follows:

– An increase in insurance expenses by 8,608 thousand riyals compared to the previous quarter of the current year, an increase of 16.61%.

An increase in other operating expenses by 307 thousand riyals compared to the previous quarter of the current year, an increase of 9.64%.

The aforementioned decline was partly stemmed from the following:

– An increase in insurance revenues by 6,592 thousand riyals compared to the previous quarter of the current year, an increase of 12.02%.

An increase in other revenues by 1,647 thousand riyals compared to the previous quarter of the current year, an increase of 102.30%.

– Net investment income increased by 143 thousand riyals compared to the previous quarter of the current year, an increase of 3.82%.

Moreover, Gross Written Premiums (GWP) decreased by 13,211 thousand riyals compared to the previous quarter of the current year, a decrease of 18.45%.

The reason for the increase (decrease) in the net profit during the current period compared to the same period of the previous year is due to the explanation below.

The main reasons for net income before zakat and tax amounting to 9,867 thousand riyals for the period ending on June 30, 2023 compared to net loss before zakat and tax amounting to -7,898 thousand riyals for the period ending on 30 June 2022 are as follows:

– An increase in insurance revenues by 7,052 thousand riyals compared to the same period of the previous year, an increase of 6.46%.

– Reducing insurance services expenses by 5,303 thousand riyals compared to the same period of the previous year, an increase of 4.51%.

– Net investment income increased by 6,112 thousand riyals compared to the same period of the previous year, an increase of 401.84%.

An increase in other revenues by 2,048 thousand riyals compared to the same period of the previous year, an increase of 72.65%.

The above improvements were affected in part by:

An increase in other operating expenses by 2,750 thousand riyals compared to the same period of the previous year, an increase of 70.10%.

Moreover, Gross Written Premiums (GWP) increased by 33,459 thousand riyals compared to the same period in the previous year, an increase of 34.65%.