Allianz Saudi Fransi Cooperative Insurance Co. announces the annual financial results for the period ending on 31-12-2016
|Element||Current year||Previous year||% Change|
|Net profit (loss) before Zakat||24,430||23,836||2.49|
|Earning or loss per share, Riyals||1.22||1.19||-|
|Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results)||11,923||21,799||-45.3|
|Gross written premiums (GWP)||836,272||803,213||4.12|
|Net written premiums (NWP)||558,441||460,370||21.3|
|Net incurred claims||376,464||277,924||35.46|
|Net profit (loss) of policy holders investment||14,597||676||2,059.32|
|Net profit (loss) of shareholders capital investment||3,694||4,460||-17.17|
|Pre operating expenses (first operation year)||-||-||-|
|All figures are in (Thousands) Saudi Arabia, Riyals|
|Reasons of annual financial results||The increase in net profit before zakat is mainly due to the increase of net earned premium by 28.8%. This was achieved through having different business mix with higher retention driven by a growth of 50.3% in Motor and 20% in Medical, while maintaining a very good overall technical result.
It is worth mentioning that the achieved increased in net income before zakat was reduced by SAR 5.3 Million premium deficiency reserves (PDR) taken to mitigate any potential losses from bodily injuries for unexpired risks in Motor Insurance. This management decision was triggered by the circular issued by the Ministry of Health stating that bodily injuries related to car accident and where injured cases are treated by public hospitals shall be recharged moving forward to insurance Companies; and therefore, shall not be paid by the said public hospitals.
|External auditor's report containing reservation||The Financial Statements are prepared in accordance with the International Financial Reporting Standards and not in accordance with the Accounting Standards generally accepted in the Kingdom of Saudi Arabia.|
|Reclassifications in annual financial results||Certain figures for the comparative period have been reclassified to conform with the presentation of the current year.|
|Other notes||EPS is calculated based on net profit before Zakat Shareholders Equity No Minority Interest reached SR 221,354,286 as at 31/12/2016 compared to SR 200,923,336 as at 31/12/2015 with an increase of 10.1% due to profit incurred during the period which resulted in reducing the accumulated losses to reach a balance of SR 448,379 as at 31/12/2016|
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