Amana Insurance turns to SAR 25.4M profit in 2023; Q4 losses at SAR 3.7M

Amana Cooperative Insurance Co. reported a net profit of SAR 25.4 million for 2023, against a net loss of SAR 48.2 million a year earlier.

The positive performance is due to a reduction in insurance revenue by SAR 53.06 million, a decrease in insurance service expenses by SAR 107.16 million, and a decline in net expense from reinsurance contracts by SAR 8.96 million.

Meanwhile, the company’s investment portfolio witnessed growth leading to an increase in investment income by SAR 5.43 million and net other income and expenses improved by SAR 10.58 million.

This came despite a decline in revenue of SAR 54.1 million mainly due to lower gross written premiums (GWP), driven by the company’s strategy focusing on profitable products and running off loss making portfolio.

The company reported a net loss of SAR 3.69 million in Q4 2023, against a profit of SAR 4.33 million in Q4 2022.

Sequentially, the insurer switched to a loss versus a profit of SAR 9.44 million in Q3 2023.

Shareholders’ equity, no minority interest, grew to SAR 282.7 million as of Dec. 31, 2023, compared to SAR 251.2 million a year earlier.

Accumulated losses stood at SAR 186.6 million by the end of 2023, which represents 43.39% of capital.

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