Tawuniya net profit up to SAR 616.4M in 2023, Q4 at SAR 89.8M

The Company for Cooperative Insurance (Tawuniya) reported a net profit of SAR 616.4 million for 2023, compared to SAR 302.2 million a year earlier.

Gross written premiums (GWP) grew 28.66% year-on-year (YoY) driven by the strong performance of the main business lines—health, motor, and general insurance.

Insurance services results leapt 29.78% YoY as insurance revenues led up supported by a reduction in claims incurred. Net profit of insurance results jumped 114.79% YoY as insurance services improved, in addition to the favorable decrease of 14.71% YoY in net expenses from reinsurance contracts held.

Investment income rose 17.04% YoY on higher profit rates and steady fixed income returns.

Moreover, the company attributed its positive results to the reversal of expected credit losses on financial assets allowance by SAR 16.23 million in 2023, compared to an increase in ECL charge by SAR 141.50 million last year.

On the other hand, the company saw a leap in net insurance finance expense by 1,087.86% YoY mainly due to the increase in liability for claims incurred, although marginal reduction in discount rates were observed.

In addition, other net operating expenses increased, as Tawuniya continues to invest in its 2025 strategy related projects and initiatives.

The net profit in Q4 2023 slumped 62% YoY to SAR 89.8 million.

Sequentially, net earnings plunged 56.5% from SAR 206.29 million in Q3 2023.

Total shareholders’ equity (no minority equity) at end of 2023 amounted to SAR 3.61 billion, compared to SAR 3.12 billion the previous year.

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