Walaa Cooperative Insurance Company achieved a net profit before zakat of about 27 million riyals during the first quarter of this year, compared to losses that exceeded 15 million riyals in the same quarter of last year.
The company said in a statement to Tadawul Saudi Arabia today, Tuesday, that the increase in net profit before zakat is due to an improvement in the results of insurance services amounting to 88.22 million riyals, or 15.44%, offset by an increase in insurance services expenses amounting to 7.05 million riyals, a rate of 2.01%, and an increase in Net expenses from reinsurance contracts amounted to 19.39 million riyals, or 6.95%, and an increase in other expenses amounted to 21.14 million riyals, or 438.66%.
The total shareholders’ equity “without minority rights” in the current period amounted to 1.14 billion riyals, compared to 867 million riyals in the same period last year, an increase of 32%.
Earnings per share in the current period amounted to 0.29 riyals, compared to a loss of 0.3 riyals in the same period last year.
Walaa Insurance has implemented IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), in accordance with the standards adopted in the Kingdom of Saudi Arabia, as of January 1, 2023 and retroactively, which led to a radical change in presenting the financial results of all Periods starting from the first quarter of 2023 and re-measurement of similar periods from previous years according to the new standards. As a result, the company announced financial results in accordance with the data available under IFRS 17 and IFRS 9.
The profit/loss per share has been calculated on the basis of profit/loss after zakat and income tax for the period. Earnings per share during the first quarter of this year amounted to 0.29 riyals per share, compared to a loss of 0.30 riyals per share for the same quarter of the previous year, which is calculated on the basis of the weighted average number of ordinary shares outstanding during the quarter.
The accumulated losses of Walaa Insurance Company at the end of the first quarter of this year amounted to 40,731 thousand riyals, which represents 4.79% of the paid-up capital, and the total comprehensive income attributable to shareholders for the first quarter of this year amounted to 24,307 thousand riyals compared to the total comprehensive loss. Attributable to shareholders, which amounted to 18,271 thousand riyals for the corresponding quarter.