News Middle East25 Mar 2020

Saudi Arabia:Reinsurer's 2019 net profit before zakat shows jump of over 300%

25 Mar 2020

The Saudi Cooperative Reinsurance Company has posted a net profit before zakat of SAR59.3m (15.8m) in 2019, compared to a profit of SAR13.7m in 2018, an increase of 332.3%.

Saudi Re said in a statement that the reason for the surge in profits was an increase of 275% in profits from shareholders' investments, as well as an 85% rise in profits from policyholders' investments. In addition, net underwriting gains jumped by 30% due to an increase of 5% in net earned premiums.

The following table presents a summary of Saudi Re's financial results for 2019:

 

 

2019

SAR

 

2018

SAR

 

Y-o-Y

change

Gross Written Premiums (GWP)

792,847,561

721,604,828

9.87%

Net Written Premiums (NWP)

646,605,277

616,896,101

4.82%

Net Incurred Claims

417,069,784

404,054,355

3.20%

Operating Results

26,040,689

8,773,866

196.80%

Net Profit from Policyholders' Investment

9,138,764

4,936,480

85.13%

Net Profit from Shareholders Capital Investment

36,340,605

9,701,593

274.58%

Net Profit before Zakat

59,317,699

13,721,681

332.29%

 

In comparison, Saudi Re's net profits before zakat declined to SAR13.7m in 2018 from SAR38.9m in 2017 largely due to a sharp fall in net investment gains on shareholders' funds to SAR8.8m in 2018 from SAR46.5m in 2017.


 

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