اعلان شركة سلامة للتأمين التعاوني عن النتائج المالية الأولية للفترة المنتهية في 2021-09-30 ( ت

A8050 SALAMA-1.46 (-7.54 %)
1443/04/04 Tue Nov 9, 2021 09:42:56

Salama 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)	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.

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