Walaa Cooperative Insurance Co. Reports Interim Financial Results for the Period Ended 2021-09-30 (Nine Months)

Gross written premiums (GRP)

Net Written Premiums (NWP)

Net claims incurred

Net benefit (loss) of policyholder investment

Surplus (deficit) from insurance operations less investment income of policyholders (results of operating procedures)

Shareholders’ net profit (loss) from capital investment

Net profit (loss) before Zakat

Total comprehensive income

Gross written premiums (GRP)

Net Written Premiums (NWP)

Net claims incurred

Net benefit (loss) of policyholder investment

Surplus (deficit) from insurance operations less investment income of policyholders (results of operating procedures)

Shareholders’ net profit (loss) from capital investment

Net profit (loss) before Zakat

Total comprehensive income

Total shareholders’ equity (after deduction of minority equity)

Earnings (loss) per share

The reason for the increase (decrease) in net profit in the current quarter compared to the same quarter of last year is

The reason for the net loss before Zakat and taxes for the current quarter compared to the net profit before Zakat and taxes of the same quarter of last year is due to the increase in net claims and other benefits incurred of SAR 100.25 million 71.52%, increase in other technical costs of SAR 22.60 million 305.60%, increase in the acquisition cost of the policy of SAR 1.75 million 13.32% and increase in overheads and administrative costs of SAR 0.60 million 1.52%. This increase in expenses and costs is partially offset by an increase in net earned premiums of SAR 68.30 million, 33.88%, a decrease in additional premium reserves of SAR 10.39 million, 82.96%, an increase in reinsurance commission of SAR 2.90 million, 20.30% and an increase in investment and commission income. of SAR 5.44 million 102.06%.

The reason for the increase (decrease) in net profit in the current quarter compared to the previous period in the current year is

The reason for the net loss before Zakat and taxes for the current quarter compared to the net profit before Zakat and taxes of the previous quarter is due to the increase in net claims and other benefits incurred of SAR 19.18 million 8.67% , increase in other technical costs of SAR 13.24 million 79.03%, decrease in investment income and commissions of SAR 14.27 million 56.98%, increase in acquisition costs of policies of SAR 1.43 million 10.58%, increase in general and administrative expenses of SAR 4.07 million 11.34% and increase in the allowance for doubtful accounts of SAR 4.11 million 96.82%. This increase in costs and charges is partially offset by the increase in net earned premiums of SAR 12.95 million of 5.04% and the increase in other technical income of SAR 0.66 million.

The reason for the increase (decrease) in net profit during the current period compared to the same period last year is

The reason for the net loss before Zakat and taxes for the current period compared to the net profit before Zakat and taxes of the previous period is due to the increase in net claims and other benefits incurred of SAR 280.52 million 70.91 %, increase in other technical costs of SAR 48.33 million 244.78%, increase in other technical reserves of SAR 19.06 million, increase in acquisition costs of SAR policies 8.40 million 24.46%, decrease other technical income of SAR 8.55 million 85.38% and increase in general and administrative expenses of SAR 8.60 million 8.34%. This increase in expenses and costs is offset by an increase in net earned premiums of 159.83 million SAR 27.23%, an increase in reinsurance commission of 14.09 million SAR 45.09%, an increase in investment and commission income of 44.79 million SAR 346.29%, a decrease in additional premium reserves of SAR 55.01 million and decrease in the provision for doubtful accounts of SAR 5.84 million 28.94% .

Declaration of the type of external auditor’s report

Unmodified notice

Modification, reservation or emphasis of a matter as stated in the opinion of the external auditor

N / A

Reclassification of comparators

Certain comparative figures have been reclassified to conform to the current period presentation. These changes have been made to better reflect the balances and transactions in the Company’s condensed interim financial information. The Company states that there is no financial impact of these reclassifications on the net results of the insurance activities, the net income and the shareholders’ equity.

Additional information

Loss / profit per share is calculated on the loss / profit after zakat and income tax for the period. Loss per share for the current period is 0.89 SAR compared to earnings per share of 0.44 for the same period of the previous year, which is calculated on the basis of the weighted average number of ordinary shares outstanding during the period. Total equity (there are no minority rights) for the current period amounts to SAR 869,538 thousand compared to SAR 916,294 thousand at December 31, 2020, a decrease of 5.10%. Retained earnings at the end of the period amounted to SAR 23,719 thousand, or 3.67% of the paid-up capital. The total comprehensive loss for the current quarter is 41,067 thousand SAR compared to the total comprehensive income of 32,386 thousand SAR for the same quarter of last year and compared to the total comprehensive income of 16,997 thousand SAR for the previous quarter. The total aggregate loss for the current period is 46,756 thousand SAR against an overall result of 22,956 thousand SAR for the same period last year.