Gulf Insurance Group « GIG » announces its Interim Financial Results for the Period Ending on 2023-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Gross Written Premiums (GWP) | 544,384 | 538,776 | 1.04 | - | - |
| Net Written Premiums (NWP) | - | - | - | - | - |
| Net Incurred Claims | - | - | - | - | - |
| Net Profit (Loss) of Policy Holders Investment | - | - | - | - | - |
| Surplus (deficit) of insurance operations minus the revenues of policy holders' investments (operational procedures results) | - | - | - | - | - |
| Net Profit (loss) of Shareholders Capital Investment | - | - | - | - | - |
| Net Profit (Loss) before Zakat | 68,933 | 177,725 | -61.21 | - | - |
| Total Comprehensive Income | 89,812 | 136,578 | -34.24 | - | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 1,029,571 | 1,183,559 | -13.01 |
| Profit (Loss) per Share | 1.13 | 3.36 | |
| 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 | "Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies. |
The Company has adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application, which has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards. As a result, the Company has only reflected the relevant financial information under the new standards in the above announcement. Items that are reported as ""0"" are no longer presented in the new financial statements under IFRS 17 and IFRS 9.
The following explanation will cover the relevant financial information reflected in the announcement above along with explanation on the new presentation of the financial results which are attached to this announcement:
The decrease in net profit before zakat and income tax for the quarter by SR 109M compared with same quarter of the previous year was due to the following main reasons:
- Increase in insurance service expenses by SR 291M compared with the same quarter of the previous year was driven mainly by change in risk adjustment during the current period compared with the same period last year, which reflects the evolution in our insurance portfolio . Further, change in loss component has increased in Q1 2023 compared with Q1 2022 mainly in Property & Casulty segment.
Above unfavorable impacts were partially offset by the following favorable movements:
(i) Increase in insurane revenue by SR 41M in Q1 2023 as compared to Q1 2022 mainly contributed by motor segment
(ii) Favourable movement in reinsurance results driven by SR 165m mainly due to changes in reinsurance share of risk adjustment
(iii) Increase in other income by SR 14M compared with the same quarter of the previous year"
The previous quarter has been reported under the repealed financial reporting standards, IFRS 4 and IAS 39, the restated balances of the previous quarter are not included in the current quarter financial statements. Therefore, no explanation is provided due to the divergence of the reporting standards between the two quarters."
Refer to the attachment for further details on the financial results items that are relevant under the newly implemented financial reporting standards for insurance companies.
The earnings per share (EPS) for the current quarter is SR 1.13 per share versus SR 3.36 per share for the same quarter of the previous year which is calculated by dividing the net income amount of SR 56,691 thousand over the weighted average number of ordinary outstanding shares of 50,000 thousand for the current quarter and SR 167,939 thousand over 50,000 thousand for the same quarter of the previous year.
Total comprehensive income for the current quarter is SR 89,812 thousand compared to SR 136,578 thousand for the same quarter of the previous year, a decrease of 34.2%.
Total Shareholder Equity as at the end of the current quarter is SR 1,029,571 thousand versus SR 1,183,559 thousand as at the end of the same quarter in the previous year, a decrease of 13.0%."
The Capital Market Authority and Saudi 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.