Al-Etihad Insurance profit down 48% to SAR 49.1M in 2024; Q4 loss at SAR 6.8M

Al-Etihad Cooperative Insurance Co. reported a 48% drop in 2024 net profit to SAR 49.1 million, from SAR 93.9 million in 2023.

Net insurance service results slipped 29% on a decrease in the company's share in the industry's insurance pools.

Net investment return fell 50% due to the reclassification of a client's receivables into sukuk investment, as a result, a provision for expected credit losses of SAR 34 million was recorded for this sukuk investment. This previously was recorded in the same amount as provision for receivables expected credit losses (classified under the umbrella of insurance revenues). The company confirmed that there is no financial impact on profits from the reclassification of these receivables.

This decrease in income was partially offset by a 24% increase in insurance revenues, mainly attributed to the increase in motor insurance revenues by SAR 289 million. Meanwhile, net insurance finance results fell by 24%, while other income grew to SAR 3.3 million.

In Q4 2024, the company turned to a loss of SAR 6.8 million against a profit of nearly SAR 24 million in Q4 2023.

Sequentially, the insurer swung to losses versus a profit of SAR 3.87 million in Q3 2024.

Shareholders’ equity, no minority interest, rose to SAR 711.65 million as of Dec. 31, 2024, from SAR 671.62 million a year earlier.

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