Gulf Insurance Group announces its Interim Financial Results for the period ending on 2024-09-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	379,270	389,920	-2.731	359,358	5.54
Result of Insurance Services	76,112	84,422	-9.843	66,188	14.993
Net Profit (Loss) of The Insurance Results	19,139	5,807	229.584	48,119	-60.225
Net Profit (Loss) of The Investment Results	24,291	19,664	23.53	18,488	31.387
Net Insurance Financing Expenses	-1,579	65	-	1,010	-
Net Profit (Loss), After Zakat, Attributable To Shareholders	21,811	10,196	113.917	52,458	-58.421
Total Comprehensive Income	64,598	-2,636	-	48,139	34.19
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	1,101,047	1,168,800	-5.796
Result of Insurance Services	207,418	-266,871	-
Net Profit (Loss) of The Insurance Results	69,169	119,898	-42.31
Net Profit (Loss) of The Investment Results	70,389	70,705	-0.446
Net Insurance Financing Expenses	-31,617	-35,123	-9.982
Net Profit (Loss), After Zakat, Attributable To Shareholders	54,051	106,575	-49.283
Total Comprehensive Income	78,268	97,483	-19.711
Total Shareholders Equity (after Deducting Minority Equity)	1,064,358	1,011,517	5.223
Profit (Loss) per Share	1.03	2.03
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the revenues during the current quarter compared to the same quarter of last year is	The decrease in insurance revenue in current quarter as compared to the same quarter of last year by SR 11 million is driven mainly by Motor segment .
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 increase in net profit by SR 12 million in current quarter as compared to same quarter of last year is driven by:

Favourable movements:

1.Positive development in net reinsurance recoveries which resulted in reduction in reinsurance costs by SR 32 million.

2. Increase in investment income by SR 4 million.

Unfavourable movements:

Above mentioned favourable movement in current quarter is partially offset by :

1.Reduction in insurance revenue by SR 11 million mainly driven by motor segment .

2. Decrease in share of surplus from insurance pool income by SR 11 million.The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is The increase in insurance revenue in current quarter as compared to previous quarter by SR 20 million is mainly driven by Protection segment.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is The reduction in net profit by SR 30 million in current quarter as compared to previous quarter is driven by:

Unfavourable movements:

1. Increase in net reinsurance expense by SR 38 million mainly driven by P&C segment.

2.Increase in insurance service expense by SR 9 million mainly due to P&C segment .

Favourable movement:

Above mentioned unfavourable movements were partially offset by :

1.Increase in insurance service revenue by SR 20 million mainly driven by Protection segment.

2. Increase in investment income by SR 6 million.The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is The decrease in insurance revenue in current period as compared to the same period of last year by SR 68 million is driven mainly by motor segment.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 decrease in net profit by SR 52 million in current period as compared to same period of last year is driven by:

Unfavourable movements:

1. Reduction in insurance revenue by SR 68 million mainly due to motor segment .

2.Reduction in share of surplus from insurance pool income by SR 21 million.

Favourable movements:

Above mentioned unfavourable impact is partially offset by following:

1.Reduction in net insurance service expenses by SR 38 million in current period mainly driven by Property and casualty segment.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) None.Reclassification of Comparison Items The co-insurance arrangements, in which the Company is a participant, are insurance contracts as defined in IFRS 17 and the Company shares the surpluses and losses, if applicable, from the insurance pool of such co-insurance arrangements. Accordingly, the financial results of the co-insurance arrangements should have been shown as part of the net insurance results and not in other income, as previously shown in the interim condensed statement of income for the prior periods. Given the rights and obligations from the co-insurance arrangements are managed and settled on a net basis and the bespoke nature of these arrangements, the Company has presented the results from these arrangement on a net basis as part of insurance service results as a separate line item named ‘share of surplus from insurance pool’ in the interim condensed statement of income.

Accordingly, the Company has restated the comparative information for the three-month and nine-month periods ended 30 September 2023 and the share of surplus from insurance pool amounting to Saudi Riyals 10.5 million and 24.4 million, respectively has been presented separately from ‘other income’ in the interim condensed statement of income. As a result, the “Total insurance service result” and “Net insurance and investment result” line items for such periods have increased respectively by the same amount. The impact on the annual financial statements for the full year was Saudi Riyals 23.8 million.

However, this change has had no impact on the statement of financial position as at 31 December 2023 and the related interim condensed statements of changes in equity and cash flows for the nine-month period ended 30 September 2023, net profit for the period attributable to the shareholders or the basic and diluted earnings per share for the three-month and nine-month period ended 30 September 2023.

Please refer note 24 of interim condensed financial statements for the three and nine months periods ended September 30 2024.Additional Information The earnings per share (EPS) for the current period is SR 1.03 per share versus SR 2.03 for the same period of the previous year which is calculated by dividing the net profit of SR 54,051 thousand for current period over the weighted average number of ordinary outstanding shares of 52,500 thousand for the current period and the net income of SR 106,575 thousand over 52,500 thousand weighted average number of ordinary shares outstanding for the same period of the previous year.

During the last year 2023, the Company has issued bonus shares which resulted in increase in number of shares by 2.5 million. This resulted in increase in number of shares from 50 million to 52.5 million during 2023.

Total comprehensive income for the current period is SR 78,268 thousand compared to total comprehensive income of SR 97,483 thousand for the same period of the previous year, a decrease of 20%.

Total Shareholder Equity as at the end of the current period is SR 1,064,358 thousand versus SR 1,011,517 thousand as at the end of the same period in the previous year, a decrease of 5.2%.

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.