Gulf Union Cooperative Insurance Co. announces its Interim Financial Results for the Period Ending on 2020-03-31 ( Three Months )

Gross Written Premiums (GWP)

133,653

173,976

-23.177

168,555

-20.706

Net Written Premiums (NWP)

98,162

111,385

-11.871

141,958

-30.851

Net Incurred Claims

90,467

58,535

54.551

105,144

-13.958

Net Profit (Loss) of Policy Holders Investment

2,030

1,342

51.266

2,541

-20.11

Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results)

-8,494

-38,136

-77.727

-7,655

10.96

Net Profit (loss) of Shareholders Capital Investment

1,038

1,378

-24.673

1,858

-44.133

Net Profit (Loss) before Zakat

-6,100

-36,169

-83.134

-4,013

52.005

Total Comprehensive Income

-13,589

-37,587

-63.846

3,043

–

All figures are in (Thousands) Saudi Arabia, Riyals

Total Share Holders Equity (after Deducting Minority Equity)

130,913

129,861

0.81

Profit (Loss) per Share

-0.45

-2.52

All figures are in (Thousands) Saudi Arabia, Riyals

150,000

13.84

All figures are in (Thousands) Saudi Arabia, Riyals

Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to

The main reason for decrease in loss this period as compared to high Loss in last period is the increase in Net premiums earned by SR 44,926 thousand (72%) and decrease in Changes in additional premium reserves by SR 29,290 thousand (116%). This improvement was partly offset due to increase in Net claims incurred and other benefits by SR 31,932 thousand (55%), Policy acquisition cost by SR 4,004 thousand (69%) and Other operating expenses by SR 8,387 thousand (58%).

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to

The major reasons for increase in loss as compare to previous quarter is the negative impact of Change in additional premium reserves by SR 14,950 thousand (79%), increase in other operating expenses by SR 5,699 thousand (33%) and Zakat expense of SR 692 as compared to reversal of excess Zakat provision of SR 3,311 thousand in the previous quarter along with other minor costs. This increase in loss was partly offset by decrease in Net claims incurred by SR 14,677 thousand (14%) and increase in Net premium earned by SR 5,517 thousand (5%).

Basis of the External Auditor’s Opinion

Unmodified opinion

Reclassification of Comparison Items

For the purpose of complying with International Financial Reporting Standards and SAMA’s instructions, the company recognized zakat and income tax in the statement of income for the three months period ended March 31, 2020. Zakat and income tax used to be recognized in the statement of changes in equity. The change required to be made retrospectively and accordingly resulted in restating some amounts in the comparative figures for the three months period ended March 31, 2019 presented in the financial statements.

Additional Information

1. The company made SR 6,792 thousand loss after zakat and income tax in the current period as compared to SR 37,856 thousand loss after zakat and income tax for the comparative period of last year. Loss per share has been calculated on the basis of Total Loss for the period after Zakat and income tax. Loss per share for the current period was SR 0.45 while it was SR 2.52 per share for the comparative period of last year.

2. Total comprehensive loss for the year was SR 13,589 thousand compared to loss of SR 37,587 thousand last year.