Salama Cooperative Insurance Co.’s profits dipped 29% to SAR 21.5 million in the first half of 2024, from SAR 30.3 million in the prior-year period.
| Item | 6m 2023 | 6m 2024 | Change |
|---|---|---|---|
| Insurance Revenues | 404.82 | 365.33 | (9.8 %) |
| Net Profit Before Zakat & Tax | 32.30 | 23.48 | (27.3 %) |
| Net Income | 30.30 | 21.48 | (29.1 %) |
| Average Shares | 15.27 | 20.00 | 31.0 % |
| EPS (Riyals) | 1.98 | 1.07 | (45.9 %) |
The first-half profits were hurt by a decline in revenue, mainly due to a drop in earned revenue. This is primarily due to a decline in gross written premiums (GWPs) for the current period in the company's compulsory vehicle insurance and health insurance sectors compared to the same period last year.
Moreover, net profit of the insurance results decreased by 0.60%, or SAR 0.14 million in H1 2024, compared to the same period of the previous year. Net insurance financing expenses increased in the current period by 39.86%, or SAR 0.56 million compared to the same period of 2023.
Other operating expenses increased by 30.08%, or SAR 3.73 in H1 2024, compared to the same period of the previous year.
Salama also reported a decrease of SAR 9.03 million in other revenues related to the share of surplus from the Hajj and Umrah coinsurance portfolios for the current period, compared to H1 2023.
The second-quarter net earnings fell 35% to SAR 11.4 million, from SAR 17.6 million in Q2 2023, due to a drop in revenue, mainly due to lower earned revenue and GWPs.
Net profit of the insurance results decreased by 02.93% year-on-year (YoY), while net insurance financing expenses saw a spike of 619.35%, or SAR 580,000 YoY. Other OpEx increased by 433.22% YoY.
| Item | Q2 2023 | Q2 2024 | Change |
|---|---|---|---|
| Insurance Revenues | 203.04 | 176.84 | (12.9 %) |
| Net Profit Before Zakat & Tax | 19.15 | 12.43 | (35.1 %) |
| Net Income | 17.65 | 11.43 | (35.2 %) |
| Average Shares | 15.27 | 20.00 | 31.0 % |
| EPS (Riyals) | 1.16 | 0.57 | (50.6 %) |
| Item | Q1 2024 | Q2 2024 | Change |
|---|---|---|---|
| Insurance Revenues | 188.49 | 176.84 | (6.2 %) |
| Net Profit Before Zakat & Tax | 11.05 | 12.43 | 12.5 % |
| Net Income | 10.05 | 11.43 | 13.7 % |
| Average Shares | 20.00 | 20.00 | - |
| EPS (Riyals) | 0.50 | 0.57 | 13.7 % |
Conversely, Salama’s bottom line jumped 13.7% on a sequential basis from SAR 10 million in Q1 2024.
| Item | 6m 2023 | 6m 2024 | Change |
|---|---|---|---|
| Insurance Revenues | 404.82 | 365.33 | (9.8 %) |
| Insurance Services Income | 22.75 | 22.61 | (0.6 %) |
| Investment Income | 10.23 | 14.57 | 42.4 % |
| Net Profit of Insurance Services and Investment | 31.56 | 35.20 | 11.5 % |
Shareholders’ equity, no minority interest, increased to SAR 226.46 million as of June 30, 2024, compared to SAR 91.15 million a year earlier.
Accumulated losses reached SAR 14.24 million by the end of the six-month period, representing 7.12% of the company’s capital.
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