Amana Insurance profit down 80% to SAR 2M in Q1 2024

Amana Cooperative Insurance Co.’s net profit declined 80% year-on-year (YoY) to SAR 2 million in Q1 2024, compared to SAR 9.7 million a year earlier.

The profit decrease in Q1 2024 is mainly attributed to a decline in insurance revenues compared to the previous year, amounting to SAR 11.7 million. This decrease stemmed mainly from an increase in written premiums by SAR 17.2 million, a change in unearned premium reserves by SAR 25.5 million, and a change in provisions for policyholders' debts by SAR 3.4 million.

Additionally, there was a decrease in net results of insurance services by SAR 9.4 million, an increase in net investment income by SAR 2.3 million, and a change in net income/expenses of insurance financing by SAR 3 million. Moreover, there was a decrease in net revenues/expenses of other operating activities by SAR 5.8 million and a reversal of Zakat provision by SAR 2.2 million.

On the other hand, the company attributed its return to profit in the current quarter, compared to losses in the previous quarter, to the increase in revenues during the current quarter, amounting to SAR 19.5 million. This increase was mainly driven by an increase in written premiums by SAR 18.6 million, a change in unearned premium reserves by SAR 2.6 million, and a change in provisions for policyholders' debts by SAR 3 million. Additionally, there was an increase in net investment income by SAR 2.6 million, and an increase in Zakat provision by SAR 2.9 million.

Total shareholders’ equity, after minority interest, stood at SAR 248.58 million in Q1 2024, compared to SAR 260.66 million a year earlier.

Gross income for the current quarter amounted to SAR 1.89 million, compared to the gross income of SAR 10.18 million in Q1 2023 and SAR 31.48 million in Q4 2023.

Accumulated losses reached SAR 184.61 million by the end of current period, accounting for 42.93% of the company’s capital.

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