Saudi Enaya Achieves Profitability, Earning SAR 20.22 Million in 2023

Saudi Enaya Cooperative Insurance Company announced a significant turnaround with a net profit after Zakat and tax of SAR 20.22 million for the fiscal year ending December 31, 2023. This marks a robust recovery from a loss of SAR 6.35 million in the previous year. The annual financial results were disclosed today, highlighting the company’s successful year.

Insurance revenues surged to SAR 251 million in 2023, up from SAR 227 million in the previous year, reflecting an 11% growth. The earnings per share (EPS) also saw a positive shift, recording SAR 0.88 compared to a loss of SAR 0.47 per share in the preceding year.

The company reported a 10.55% increase in insurance revenues, amounting to SAR 250.88 million, driven primarily by business expansion. The net profit before Zakat and income tax attributable to shareholders was SAR 20.684 million, a significant increase of 521.35% over the previous year’s loss.

Key factors contributing to the net profit after Zakat and tax of SAR 20.22 million include a net insurance service result of SAR 14.685 million, up 314.35% due to business growth, and a net investment result of SAR 15.614 million, a 213.79% increase, fueled by higher investment deposit and interest rates. However, these gains were partially offset by a 41.54% rise in other operating expenses, totaling SAR 14.625 million, to support the expansion, and a 31.36% decrease in other income to SAR 5.010 million.

Gross Written Premiums (GWP) also grew by 9.91%, reaching SAR 250.026 million, thanks to the company’s strategic growth initiatives.

With the adoption of IFRS 17 and IFRS 9 standards on January 1, 2023, the company has updated its financial presentation to comply with these regulations, affecting the reporting from Q1 2023 and restating comparative periods accordingly.

This financial turnaround is reflected in the Total Shareholders’ Equity, which rose by 12.04% to SAR 188.177 million, and the Total Equity, increasing by 12.17% to SAR 190.757 million by the end of 2023, evidencing the company’s strengthened financial position.