KSA - Walaa’s FY19 net profit falls by 77% to SAR 23.2 m
Thursday, 03 19 2020, Category: Insurance and Reinsurance, Country: Saudi Arabia
Walaa Cooperative Insurance Co. (Walaa) reported a net profit before Zakat of SAR 23.2 million for fiscal year 2019, down 77% year-on-year (YoY), compared to SAR 100.4 million a year earlier.
The decline in profit is attributed to 10.70% or SAR 85.46 million decrease in net earned premiums, as well as 14.81% or SAR 4.23 million decrease in reinsurance commission.
The company also cited 16.82% or SAR 80.76 million increase in net claims and 134.19% or SAR 12.99 million increase in other underwriting expenses.
This increase in costs and expenses is partially offset by 166.72% or SAR 8.88 million decrease in additional premium reserves, 84.23% or SAR 17.74 million decrease in other technical reserves, 35.71% or SAR 25.57 million decrease in policy acquisition costs.
Additionally, costs and expenses is partially offset by 122.48% or SAR 15.44 million decline in allowance for doubtful debts, 13.22% or SAR 17.53 million decrease in general and administrative expenses and 91.31% or SAR 12.77 million increase in commission from bank deposits and investment income.