|Reasons of annual financial results
||The improvement in results for the year ended 31 December 2015, as compared with the year ended 31 December 2014, was mainly due to strong business growth resulting in a higher net earned premium and, combined with an improved, lower, net claims incurred to net earned premium ratio (77.3% for the year 2015 compared with 79.4% for the year 2014), resulting in a significantly higher net underwriting result. The net underwriting result gains were partially offset by increased growth related operational expenses, such as commissions, levies, bad debt provision expense and other operating expenses, including staff costs, as well as a higher Cooperative distribution expense. Additionally a reduction in investment and other income, of SR23,035K, in part due to the stock market major decline in the third quarter of 2015, compared with 2014, also partially offset the net underwriting result gains. Gross Written Premium (GWP) increased by SR1,587,567K, an increase of 28%, the Net earned premium increased by SR2,144,323K, an increase of 47%, and the net underwriting result for the year ended 31 December 2015, as compared to the previous year, improved by SR582,282K, representing an increase of 62%. The surplus from Insurance Operations of SR731,176K, is an increase of SR403,907K, versus a surplus of SR327,269K for the year ended 31 December 2014, representing an increase of 123%. The Cooperative distribution expense was at SR73,118K for 2015, versus 2014 at SR32,727K, an increase of SR40,391K, due to the significantly higher 2015 surplus from Insurance Operations.
||The earnings per share (EPS) for the year ended 31 December 2014, of SR3.78 per share has been calculated based on the new number of shares in issue after the Capital increase, to 80,000,000 (eighty million) shares, as approved during the Extraordinary General Assembly meeting of our shareholders, held on Monday 25th of Safar 1437H (Monday 7th December 2015G), as announced on Tadawul on Tuesday 26th of Safar 1437H (Tuesday 8th December 2015G). The prior year EPS restatement is as reflected within the financial results and in accordance with the relevant International Accounting Standards.