Al-Rajhi Takaful’s Profits Skyrocket by 353% to SAR 328 Million in 2023

Al Rajhi Cooperative Insurance Company recorded a net profit during the year ending on December 31, 2023, after Zakat, attributable to shareholders, in the amount of 328 million riyals, compared to 72.3 million riyals in 2022, an increase of 353.1%. This came after today’s announcement of the estimated annual financial results ending on December 31, 2023.

Net profits from insurance results amounted to 318.7 million riyals during the year ending December 31, 2023, compared to 58.8 million riyals in 2022, an increase of 441.9%.

Total ownership rights (after excluding non-controlling interests) amounted to 1.72 billion riyals, compared to 1.34 billion riyals, an increase of 28.2%.

Earnings per share reached 3.28 riyals in the current period, compared to 0.72 riyals in the last period.

According to the company, insurance revenues in the current year amounted to 4,236,470 thousand riyals, compared to 2,934,503 thousand riyals for the previous year, an increase of 44.4%, and this is due to the growth of operations in all insurance activities.

As for the net profit after Zakat attributable to shareholders in the current year, it amounted to 328,061 thousand riyals, compared to 72,391 thousand riyals for the previous year, i.e. an increase of 353.2%, and this is due to the following main reasons:

Insurance revenues for the current year amounted to SR 4,236,470K, compared to SR 2,934,503K during the previous year, an increase of 44.4%, which was driven by business growth in all lines of business.

Net profit after zakat attributable to shareholders for the current year amounted to SR 328,061K, compared to SR 72,391K during the previous year, an increase of 353.2%. The improvement was due to the following main reasons:

• Insurance service result for the current year amounted to SR 696,503K, compared to SR 443,009K during the previous year, an increase of 57.2%, which was primarily driven by the business growth.

• Net insurance service result for the current year amounted to SR 318,750K, compared to SR 58,815K during the previous year, an increase of 442.0%, which was mainly driven by business growth. The increase in re-Takaful contributions were partly offset by the re-Takaful claim recoveries.

• Total investment income of SR 268,862K (2022: SR 77,587K) includes SR 114,009K (2022: SR -12,481K) pertain to fair value movement in unit holders’ fund investments. Net investment income (excluding unit holders share) for the current year is amounted to SR 154,853K, compared to SR 90,068K during the previous year, an increase of 71.9%, driven by improved yield and increase in investible assets.

The net insurance finance expenses of (146,223K) includes return on unit holders fund investments along with fair value movements payable to the unit holders.

• These favorable movements were partially offset by Other operating expenses for the current year amounted to SR (103,975K) compared to SR (98,501K) during the previous year, an increase of 5.6%, arising from increase in operating expenses to support business growth.

• Total comprehensive income for the current year amounted to SR 395,426K compared to SR 484K during the previous year, an increase of 81599.6% .

• Moreover, Gross Written Premiums (GWP) for the current year is amounted to SR 6,022,857K compared to SR 3,470,070K during the previous year, an increase of 73.6%.