Malath Cooperative Insurance Company SJSC

11/07/2021 | Press release | Distributed by Public on 11/07/2021 01:02

Malath Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

Malath Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

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Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change
Gross Written Premiums (GWP) 284,962 153,611 85.508 195,905 45.459
Net Written Premiums (NWP) 274,455 141,872 93.452 183,916 49.228
Net Incurred Claims -190,107 -156,343 21.596 -159,877 18.908
Net Profit (Loss) of Policy Holders Investment 2,390 2,491 -4.054 2,946 -18.873
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) -40,263 -8,773 358.942 -17,761 126.693
Net Profit (loss) of Shareholders Capital Investment 4,740 7,761 -38.925 4,982 -4.857
Net Profit (Loss) before Zakat -33,425 1,304 - -8,599 288.707
Total Comprehensive Income -34,539 522 - -12,313 180.508
All figures are in (Thousands) Saudi Arabia, Riyals
Element List Current Period Similar period for previous year %Change
Gross Written Premiums (GWP) 771,197 617,021 24.987
Net Written Premiums (NWP) 717,238 545,088 31.582
Net Incurred Claims -482,525 -429,028 12.469
Net Profit (Loss) of Policy Holders Investment 8,748 7,194 21.601
Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) -63,581 -7,487 749.218
Net Profit (loss) of Shareholders Capital Investment 12,843 14,709 -12.686
Net Profit (Loss) before Zakat -41,320 10,620 -
Total Comprehensive Income -49,113 4,290 -
Total Share Holders Equity (after Deducting Minority Equity) 418,943 464,759 -9.858
Profit (Loss) per Share -1.02 0.01
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated Losses Capital Percentage %
-85,801 500,000 -17.16
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 booking a loss (before Zakat) during the current quarter compared to profits in the same quarter of the previous year is due to:

1) An increase in net claims incurred by 21.60%, mainly due to the increase in net claims incurred for Motor by 80.88% in the current quarter compared to the same quarter of the previous year and increasing the technical reserves for Motor in particular.

2) Increase in policy acquisition costs and other underwriting costs

3) Decrease in investment income by 30.45%.

4) Other income decreased by 99%.

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 increase the net loss before zakat compared to the previous quarter is due to:

1) Increase in gross paid claims by 8.10%, and increase the net incurred claims by 18.91% , mainly in Motor by 32%.

2) Investment income decreases by 10% and other income decreases by 99% .

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 recording loss (before zakat) for the current period as compared with profits for the similar period of the previous year is:

1) Gross claims paid increased by 23.74%.

2) Net claims incurred increased by 12.47%, due to an increase in Motor and Medical by 15% and 11%, respectively.

3) An increase in the expenses of doubtful debts and other underwriting expenses.

Statement of the type of external auditor's report Unmodified opinion
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 condensed interim financial information of the Company. The Company asserts that there is no financial impact of these re-classifications on Net Results From Insurance Operations and Net Income.
Additional Information Total shareholders' equity (there is no minority rights) as on SEP 30, 2021 amounted to 418,943 thousand riyals compared to 468,056 thousand riyals at the beginning of the year, with a decrease of (10.49) %, thus bringing the book value of the share to 8.38 riyals.

We would like to draw attention to the fact that the earnings per share for the third quarter 2021 and the third quarter of 2020 shown above has been calculated by dividing the net profit (loss) attributable to the shareholders (after zakat), with loss in the second quarter of 2021 (For the Nine-month period ended 30 SEP 2021) Value (51,053) thousand riyals, against a net profit of 720 thousand riyals for the same period last year, on the weighted average number of existing ordinary shares of 50,000.

The zakat expense charged for the current period a is 9,733 thousand riyals, and the zakat expense charged for the same period of the previous year was 9,900 thousand riyals.

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.