GIG incurs SAR 20.2M loss in Q1 2024

Gulf Insurance Group (GIG) swung to a net loss of SAR 20.2 million for Q1 2024, against a net profit of SAR 56.7 million in the prior-year period.

The annual losses were attributed to a decline of SAR 28 million in insurance revenue from the motor segment. GIG also reported a drop of SAR 62 million in reinsurance contracts on lower recoveries compared to Q1 2023, primarily related to the property and casualty (P&C) segment.

Meanwhile, insurance costs decreased by SAR 9 million, mainly due to P&C and motor segments.

The company’s investment income rose by SAR 5 million, while net finance expense declined by SAR 8 million.

In Q4 2023 the insurance services provider recorded a net income of SAR 21.95 million. The quarterly loss was ascribed to a drop of SAR 33 million insurance revenue, due to the motor and P&C segments.

Insurance service costs increased by SAR 173 million quarter-on-quarter. Net financing expenses also increased by SAR 27 million QoQ.

Compared to Q4 2023, GIG’s net income tumbled 192.1% from SAR 21.95 million.

Total shareholders’ equity, no minority interest, rose to SAR 1.03 billion as of March 31, 2024, from SAR 1.02 billion a year earlier.

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