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

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Gross Written Premiums (GWP) 253,798380,295-33.262198,77727.679
Net Written Premiums (NWP) 213,307334,508-36.232187,01714.057
Net Incurred Claims 149,510126,19718.473143,8263.951
Net Profit (Loss) of Policy Holders Investment 3,2313,255-0.7374,312-25.069
Profit (Loss) Insurance Operations Minus Policy Holders Investments Revenues (Operations Results) -2,130937-8,356-
Net Profit (loss) of Shareholders Capital Investment 3,2252,9887.9314,239-23.92
Net Profit (Loss) before Zakat 3,9936,573-39.25116,719-76.116
Total Comprehensive Income 1,0813,589-69.8854996.903
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (after Deducting Minority Equity) 461,550458,0110.772
Profit (Loss) per Share 0.010.07
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
-41,603500,0008.32
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The reason for the decrease in net profit before Zakat attributable to the shareholders of the company during the current quarter compared to the Similar quarter for previous year by 39% is due to:

1) The decrease in the Gross written premiums by 33%, due to the decrease in the Motor GWP by 57% over the similar quarter of the previous year , and the decrease in GWP for Property & casualty by approximately 5% from the same quarter of the previous year despite the increase of GWP for Medical insurance by 7%

2) The increase in net claims incurred by 18%, due to the increase in Motor claims incurred by 32% compared to the similar quarter of the previous year

3) The increase in policy acquisition costs by 29% compared to the similar quarter of the previous year

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The reason for the decrease in net profit before zakat attributed to the company's shareholders during the current quarter compared to the previous quarter by 76%, despite the increase in gross written premiums by 28%, this decrease is due to:

1) The income of reinsurance commissions decreased by 34% compared to the previous quarter

2) The investment income decreased by 32% over the previous quarter

3) An increase in net claims incurred by 4%, and a decrease in net underwriting income by 12% , despite the increase in Gross written premiums by 28% compared to the previous quarter.

Noting that the company did not issue condensed interim financial statements for the Q4 of 2019 (the previous quarter) independently, as it issued audited financial statements for the financial year 2019 “Yearend “ , so the previous quarter data were calculated after the release of the Yearend financial results, then subtracted the nine months ended September 30, 2019 from the Yearend financial results

Basis of the External Auditor's Opinion Unmodified opinion
Reclassification of Comparison Items Some of the items, elements and clarifications of the condensed interim financial statements for the Q1 of 2019 have been amended, reclassified, In line with the standards and accounting policies applied in the financial statements, items and elements for interim financial statements for the Q1 of 2020 , which has been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as endorsed in the Kingdom of Saudi Arabia and other standards and other pronouncements issued by Saudi Organization for Certified Public Accountants (“SOCPA”) (collectively referred to as “IFRS as endorsed in KSA”). In addition to the above Starting from the quarter ended 30 June 2019, Zakat is to be accrued at end of each financial reporting period and recognized in statement of income with corresponding liability recognized in statement of financial position in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants (“SOCPA”).

For more information about this, refer to Notes 2 - A and No. 19 in the notes attached to the condensed interim financial statements for the Q1 - 2020.

Additional Information The company achieved positive operating cash flows during the first quarter of the year 2020 amounted to 9,929 thousand riyals, compared to operating cash flows that were used (negative) in operations with an amount of 13,980 thousand riyals during the comparative first quarter of the previous year 2019 .

Total shareholders' equity (there are no minority rights) as of March 31, 2020 amounted to 461,550 thousand riyals compared to 460,469 thousand riyals at the end of the year 2019, an increase of 0.23% to reach the book value of the share 9.23 riyals

We would like to draw attention to the fact that the earnings per share for the first quarter of 2020 and the first quarter of 2019 shown above have been calculated by dividing the net profit attributable to shareholders after Zakat - which in the first quarter of 2020 reached 693 thousand riyals compared to 3,273 thousand riyals in the first quarter of last year, with a decrease of 79% - on the weighted average number of 50,000 ordinary shares outstanding. Note that the Zakat charge charged to the corresponding quarter and quarter has reached 3,300 thousand

although the economic, commercial and organizational conditions in the current period are considered unfavorable to the commercial environment in general, Malath is constantly and diligently seeking to reduce the severity of any negative effects from these conditions by raising its operational efficiency, as it reduced its General and administrative expenses by 19% compared to the same quarter of 2019. In addition to its continuous pursuit of developing products and services and caring for the customer by raising the quality and competitiveness of the company's customer services

Attached Documents  

The Capital Market Authority and the Saudi Stock 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.

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