GIG Reports SAR 20 Million Loss in Q1

Gulf Insurance Group (GIG) has disclosed a loss after zakat attributable to shareholders of 20 million riyals during the first quarter of 2024, in contrast to a profit of 57 million riyals in the same quarter of the previous year. This announcement follows today’s release of the estimated financial results for the period ending on March 31, 2024 (3 months).

Profits from investment results amounted to 28 million riyals in Q1 2024, compared to 22 million riyals in the corresponding quarter of the previous year, reflecting a 23% increase. The loss per share for Q1 2024 was 0.39 riyals, down from 1.08 riyals in the same quarter of the previous year.

The decrease in insurance revenue in the current quarter compared to the same quarter of the previous year by SR 28 million is mainly attributed to the Motor segment. The loss in the current quarter of SR 20 million, compared to a net income of SR 57 million in the same quarter of the previous year, is primarily driven by:

1. Reduction in insurance revenue by SR 28 million, mainly due to the motor segment.

2. Negative movement in reinsurance contracts held by SR 62 million, driven by lower recoveries compared to the same quarter of the previous year, primarily related to the Property and Casualty (P&C) segment.

Offsetting movements include:

1. Reduction in insurance costs by SR 9 million, mainly due to the P&C and motor segments.

2. Increase in investment income by SR 5 million.

3. Reduction in net finance expenses by SR 8 million.

Comparing the current quarter to the previous quarter, the decrease in insurance revenue by SR 33 million is mainly driven by the Motor and P&C segments. The loss in the current quarter of SR 20 million, compared to a net income of SR 22 million in the previous quarter, is driven by:

1. Reduction in insurance revenue by SR 33 million, mainly due to the motor segment.

2. Increase in insurance service expenses by SR 173 million, mainly led by the P&C segment.

3. Increase in net finance expenses by SR 27 million.

Offsetting movements include:

1. Movement in reinsurance costs of SR 191 million, mainly in the P&C segment.

2. Increase in investment income by SR 3 million.

The loss per share (LPS) for the current period is SR 0.39 per share, compared to an earnings per share (EPS) of SR 1.08 for the same period of the previous year. Total comprehensive loss for the current period is SR 34,469 thousand, compared to a total comprehensive income of SR 89,812 thousand for the same period of the previous year, reflecting a decrease of 138.38%.

Total Shareholder Equity as at the end of the current period is SR 1,030,371 thousand, versus SR 1,029,571 thousand as at the end of the same period in the previous year, representing an increase of 0.1%.