Bupa Arabia for Cooperative Insurance Co. announces the annual financial results for the Year ended in 31-12-2016
|Element||Current year||Previous year||% Change|
|Net profit (loss) before Zakat||630,705||645,077||-2.23|
|Earning or loss per share, Riyals||7.9||8.07||-|
|Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)||573,761||704,915||-18.61|
|Gross written premiums (GWP)||7,938,630||7,328,016||8.33|
|Net written premiums (NWP)||7,871,171||7,285,552||8.04|
|Net incurred claims||6,178,445||5,211,046||18.56|
|Net profit (loss) of policy holders investment||80,188||26,261||205.35|
|Net profit (loss) of shareholders capital investment||50,237||-7,714||-|
|Pre operating expenses (first operation year)||-||-||-|
|All figures are in (Thousands) Saudi Arabia, Riyals|
|Reasons of annual financial results||The decline in the results for the current year versus the previous year results was mainly due to the increase in net claims incurred. Gross written premiums for the current year is SR7,938,630K compared to SR7,328,016K for the previous year representing an increase of 610,614 by 8% .The net underwriting result for the current year versus the previous year deteriorated by SR39,481K , representing a decrease of 3%.Net written premiums for the current year increased to SR7,871,171K compared to the previous year SR7,285,552K which represents an increase of 8% .This corresponds to an increase in claims incurred for the current year reaching SR6,178,445K compared to the previous year SR5,211,046K an increase of 19%.The surplus from Insurance Operations Less investment income of policyholders for the current year is SR573,761K compared to SR704,915K for the previous year, a decrease of 19% . Investment and other income/loss increased significantly by 577% (current year investment and other income/loss is SR130,392K versus the previous year investment and other income/loss is SR19,251K) . Net profit before zakat for the current year is SR630,705K versus SR645,077K for the previous year, which represents a decrease of 2%.|
|External auditor's report containing reservation||The joint independent auditors report on the annual financial statements mentions that the financial statements have been prepared in accordance with International Financial Reporting Standards and not in accordance with the accounting standards generally accepted in the Kingdom of Saudi Arabia. However the company assures that there are no significant differences in the results contained within the financial statements due to using International Financial Reporting Standards rather than the SOCPA accounting standards.|
|Other notes||The earnings per share for the current year is SR7.90 per share versus the previous year is SR8.07 per share, which has been calculated based on the number of shares issued after the Capital increase to 80,000,000 (eighty million) shares, as was approved during the Extraordinary General Assembly meeting of its shareholders, held Monday 25th of Safar 1437H (Monday 7th December 2015G).
The total shareholder equity (no minority interest) at current year is SR 2,027,054K versus SR 1,666,540K for the previous year with an increase of 22%.
The Company has recorded tax/zakat provision based on the recent circular No. 12746/16/1438 dated 20/4/1438H (18 January 2017) issued by the GAZT, in which Saudi public listed companies are to provide for tax and zakat based on the shareholding percentage of Saudi and non-Saudi shareholders as per the Articles of Association. This circular was issued, subsequent to an earlier circular No. 6768/16/1438 dated 5/3/1438H (4 December 2016), which stated that all Saudi public listed companies are required to provide for tax/zakat based on the nationality of the shareholders at year end and as such the tax and zakat provided at year end as reported in the reviewed financial statements for the twelve-month period ended 31 December 2016 have been adjusted in these financial statements to reflect this change. This change has no impact on the company results.
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.