1443/04/04 Tue Nov 9, 2021 09:42:56
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Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
Gross Written Premiums (GWP) | 125,322 | 157,522 | -20.441 | 117,059 | 7.058 |
Net Written Premiums (NWP) | 108,809 | 129,763 | -16.147 | 102,378 | 6.281 |
Net Incurred Claims | 105,714 | 65,759 | 60.759 | 69,712 | 51.643 |
Net Profit (Loss) of Policy Holders Investment | 1,325 | 5,615 | -76.402 | 454 | 191.85 |
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) | -43,250 | -6,470 | 568.469 | -2,754 | 1,470.442 |
Net Profit (loss) of Shareholders Capital Investment | 4,153 | 4,355 | -4.638 | 3,787 | 9.664 |
Net Profit (Loss) before Zakat | -38,094 | 3,182 | - | 80 | - |
Total Comprehensive Income | -38,094 | 1,596 | - | -1,420 | 2,582.676 |
All figures are in (Thousands) Saudi Arabia, Riyals |
Element List | Current Period | Similar period for previous year | %Change |
Gross Written Premiums (GWP) | 360,617 | 339,939 | 6.082 |
Net Written Premiums (NWP) | 319,074 | 287,476 | 10.991 |
Net Incurred Claims | 241,208 | 193,449 | 24.688 |
Net Profit (Loss) of Policy Holders Investment | 2,941 | 8,730 | -66.311 |
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) | -47,771 | -840 | 5,587.023 |
Net Profit (loss) of Shareholders Capital Investment | 11,558 | 4,159 | 177.903 |
Net Profit (Loss) before Zakat | -35,342 | 9,603 | - |
Total Comprehensive Income | -38,342 | 5,892 | - |
Total Share Holders Equity (after Deducting Minority Equity) | 167,956 | 207,699 | -19.134 |
Profit (Loss) per Share | -1.53 | 0.2 | |
All figures are in (Thousands) Saudi Arabia, Riyals |
Accumulated Losses | Capital | Percentage % |
87,047 | 250,000 | 34.82 |
All figures are in (Thousands) Saudi Arabia, Riyals |
Element List | Explanation |
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The reason for net loss in current quarter compared to the net profit for the Similar Quarter previous year is mainly due to the increase in net claims incurred by 61% compared with increase in net earned premium by 15%, there is a decrease in Other Underwriting income by 92% and also the decrease in net profit of policy holders investment by 76%. |
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is | The reason for net loss for the current quarter compared to the net profit for the Similar previous Quarter is mainly due to increase in net claims incurred by 52% and also increase in commission expenses by 18%. |
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reason for net loss for the current period compared to the net profit Similar period of the previous year is mainly due to the increase in net claims incurred by 25% compared with increase in net earned premium by 9% , there is an Increase in other operating expenses by 33% and also the decrease in net profit of policy holders investment by 66%. |
Statement of the type of external auditor's report | Qualified opinion |
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion |
As per the management declaration, during the year 2020 the Company that developed the accounting system had prepared the financial transactions in the SAP system with an automated CBC system, whereby all operations are processed automatically and closed through suspense accounts through the system immediately. The management was unable to determine the details of these transactions and the reason for their accumulation in the suspense accounts due to the lack of a complete ledger and detailed statements illustrating the details of these differences and the outstanding transactions. The management escalated the matter to the developing company and a meeting was held with its representative in the Kingdom of Saudi Arabia in order to provide the Company's management with the details and reasons behind these system differences that led to the existence of these accumulated amounts in the system. The management believes that the financial statements were prepared on the assumption of continuity and resolving technical and programmatic matters during the year end of 2021, based on management's assessment.
The Company has other receivables of SR 4.8 million as of 30 September 2021 (31 December 2020: 15.1 million), which represent accounting system's processing differences related to the insurance operations due to the limitations and difficulties in the new IT system. The matter has been escalated to the Board of Directors as well as upper management of the IT system developer. Further, the excess of loss expenses also resulted in credit balance instead of debit balance. The External Auditors were unable to obtain sufficient appropriate evidence in respect of the above mentioned balances. In light of the above, they were unable to determine whether any adjustments to other receivables and excess of loss premiums were required and determine the possible impact on the financial statements for the period ended 30 September 2021 and year ended 31 December 2020. |
Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform to the presentation of the current period. These changes have been made to better reflect the balances and transactions in the financial statements of the Company. This adjustments did not have any significant impact on the comparative statement of income and statement of changes in equity. |
Additional Information |
The losses per share for the current period is SR (1.53) per share versus earning of SR 0.20 per share for the same period last year by dividing the net losses attributed to shareholders after zakat and income tax amount of SR (38,342) thousand over the weighted average number of ordinary outstanding shares of 25,000 thousand for the current period and earning SR 5,103 thousand over 25,000 thousand for the same period of last year.
The total shareholders` equity (no minority interest) at current period is SR 167,956 thousand compared to SR 207,699 thousand (after deducting minority interest) during the same period of last year, an decrease of (19.13%). The accumulated losses has reached SR (87,047) thousand for the period ended 30 September 2021, which consist of 34.82% of the paid capital amounting to SR 250,000 thousand. |
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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SALAMA Cooperative Insurance Company SJSC published this content on 09 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 11:32:06 UTC.