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Solidarity Saudi Takaful Co announces the interim financial results for the period ending on 31-12-2013 (Twelve Months)

Solidarity Saudi Takaful Company announces the annual financial results for the period ended 31/12/2012 as follows:

ElementCurrent quarterSimilar quarter for previous year% Change CurrentPrevious quarter% Change Previous
Net profit (loss) before Zakat -74,943,195 -15,416,601 -386.12 -10,704,000 -600.14
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) -82,135,870 -19,919,923 -312.33 -19,562,000 -319.87
Gross written premiums (GWP) 55,300,020 16,369,643 237.82 68,544,000 -19.32
Net written premiums (NWP) 43,068,064 9,681,713 344.84 54,361,000 -20.77
Net incurred claims 54,569,223 2,423,278 2,151.88 21,577,000 152.9
Net profit (loss) of policy holders investment 0 0 - - -
Net profit (loss) of shareholders capital investment 7,566,177 5,241,652 44.35 9,769,000 -22.55


ElementCurrent periodsimilar period for previous year% Change
Net profit (loss) before Zakat -83,939,447 -28,641,991 -193.06
Surplus (deficit) of insurance transactions less returns of policy holders investment (operating transactions results) -124,755,415 -50,529,100 -146.9
Gross written premiums (GWP) 204,607,109 24,706,389 728.15
Net written premiums (NWP) 145,011,116 13,435,739 979.29
Net incurred claims 88,354,739 3,334,690 2,549.56
Net profit (loss) of policy holders investment 0 0 -
Net profit (loss) of shareholders capital investment 44,931,950 26,668,228 68.48
Earning or loss per share, Riyals -1.51 -0.52 -
All figures are in Saudi Arabia, Riyals

ElementExplaination
Reasons of increase (decrease) for the quarter compared with same quarter last year The reasons for the increase in the net loss during the current quarter as compared to the same quarter of the previous year are due to the increase in claims and providing the actuary technical reserves.
Reasons of increase (decrease) for the period compared with same period last year The reasons for the a increase in net loss during the current period (12 months) as compared to the same period in the previous year are due to the increase in claims and providing the actuary technical reserves.
Reasons of increase (decrease) for the quarter compared with the previous quarter The reasons for the a increase in net loss during the fourth quarter as compared to the third quarter in 2013 are due to the increase in claims and providing the actuary technical reserves.
External auditor's report containing reservation The external auditors draw the attention to the fact that these financial statements are prepared according to IAS34 and not according to SOCPA and assure that there were no material differences related to the above mentioned fact.
Other notes 1)There was no loss/gain recorded on the policyholder investments in Q4 2013 as well as the same quarter of the previous year. 2)The net loss per share for the 12 months period is calculated on the net loss before zakat.

Solidarity Saudi Takaful Company announces the annual financial results for the period ended 31/12/2012  

Solidarity Saudi Takaful Company announces the annual financial results for the period ended 31/12/2012 as follows:

  • The net loss before zakat was SAR 28,642 thousand compared to SAR 58,289 thousand for the previous year, decreased by 50.86 %.
  • Loss per share is SAR 0.52 compared to SAR 1.05 for the previous year.
  • The deficit from insurance operations, net of return of policyholders' investments (operations results) was SAR 50,529 thousand, as compared to a deficit of SAR 9,005 thousand for the previous year, an increase of 461.12%.
  • The Gross written premium (GWP) was SAR 24,706 thousand compared to SAR 133 thousand for the previous year, increased by 18475.94% and net written premiums (NWP) was SAR 13,436 thousand compared to loss of SAR 517 thousand for the previous year.
  • The net claims incurred was SAR 3,335 thousand compared to SAR 199 thousand for the previous year, increased by 1575,88%
  • There was no investment for the Insurance Operations for 2012 as compared to the same period of the previous year. The profit in shareholders investments for the twelve month period was SAR 26,668 thousand, as compared to a profit of SAR 10,349 thousand for the same period in the previous year, an increase of 157.69%.
  • The reason for the decrease in losses during the current year period as compared to the corresponding period of last year was due to the reason that our previous year was the first operational year so we incurred initial operational set up expenses and our financial year was comprises of 20 months. In addition to that, shareholders investment income was increased during the current year which resulted in the reduction of losses.
  • The Company also draw attention to the following which is stated in our external auditors, 2012 report: as shown in the accompanying statement of financial position and in note 17 to the accompanying financial statements, the Chairman of the board of directors (a shareholder) has a debit balance amounting to SR 3,739,659, which was collected subsequently on January 15, 2013.
  • The external auditors draw the attention to the fact that the management has prepared these financial statements in accordance with International Financial Reporting Standards and not in accordance with the accounting standards generally accepted in the Kingdom of Saudi Arabia issued by the Saudi Organization for Certified Public Accountants.

Solidarity Saudi Takaful company announces its interim financial statements for the twelve month period ended 31 december 2012 (tweleve months).

Solidarity Saudi Takaful Company announces its interim financial statements for the Twelve month period ended 31 December 2012 as follows:
  • Total net loss before Tax and Zakat for Q4 2012 was SAR (15,417) thousand, compare to a net loss of SAR (3,746) thousand for the same quarter of the previous year, an increase of 311.56%, and compared to a net loss of SAR (8,695) thousand in Q3 2012, an increase of 77.31%.
  • The deficit for insurance operations, net of return of policyholders investments (Operations results) for Q4 2012 was SAR (19,920) thousand, compared to a deficit of SAR (9,005) for the same quarter last year which is an increase of 121.21%.
  • The Gross written premiums (GWP) for Q4 2012 was SAR 16,370 thousand, compared to SAR 133 thousands for the same quarter of the previous year, an increase of 12208.27%. Net written premiums (NWP) for Q4 2012 was SAR 9,682 thousand, compared to deficit of SAR (517) thousands for the same quarter of the previous year.
  • The net claims incurred during Q4 2012 was SAR 2,423 thousand, compared with SAR 199 thousand for the same quarter of the previous year, an increase of 1117.59%.
  • There was no loss/gain recorded on the policyholder investments in Q4 2012 as well as the same quarter of the previous year. The net profit of shareholders investment during Q4 2012 was SAR 5,242 thousand, compared to a net profit of SAR 5,560 thousand for the same quarter of the previous year, a decrease of 5.72%.
  • The Net loss before Tax and Zakat for the twelve month period was SAR (28,642) thousand, as compared to a net loss before Tax and Zakat of SAR (58,290) for the same period in the previous year (i.e. for 20 months), a decrease of 50.86%.
  • The net loss per share for the twelve month period was SAR(0.52)compared to net loss per share SAR(1.05) for the same period of the previous year (i.e. for 20 months)
  • The deficit for insurance operations, net of return of policyholders investments (operations results) for the twelve month period was SAR (50,529) thousand, as compared to a deficit of SAR (9,005) thousand for the same period in the previous year, an increase of 461.12%.
  • The Gross written premium (GWP) for the twelve month period was SAR 24,706 thousand, compared to SAR 133 thousands for the same period in the previous year (i.e. for 20 months), an increase of 18476%. The net written premium (NWP) for the twelve month period was SAR 13,436thousand, compared to deficit of SAR (517) thousand for the same period in the previous year (i.e. for 20 months).
  • The net claim incurred for the twelve month period were SAR 3,335 thousand, compared with SAR 199 thousand for the same period of the previous year (i.e. for 20 months), an increase of 1576%.
  • There was no loss/gain policyholders investments for the twelve month period as compared to the same period of the previous year. The profit in shareholders investments for the twelve month period was SAR 26,668 thousand, as compared to a profit of SAR 10,349 thousand for the same period in the previous year (i.e. for 20 months), an increase of 157.69%.
  • The reason for the increase in the net losses during the current quarter as compared to the same quarter of the previous year is that, the Company was operating in a pilot and test phase during the fourth quarter of 2011 whereas during the fourth quarter of 2012, the Company is in real insurance operations which resulted in an increase in claims, payments and provision of IBNR.
  • The reason for the decrease in net losses during the current year period as compared to the corresponding period of last year (i.e. for 20 months) was due to the reason that our previous year was the first operational year so we incurred initial operational set up expenses and our financial year was comprises of 20 months. In addition to same, shareholders investment income was increase during the current year which resulted in the reduction of losses.
  • The reason for the increase in net losses during the current quarter as compared to the previous quarter of this year was due to the reason that company issued the major policies in the fourth quarter, 2012 which in turns increases the amount of un earned premium and the amount for provision for the claims outstanding as well as for the provision of IBNR.
  • The Company also draw attention to the following which is stated in our Q-4, 2012 limited review report as issued by our External Auditors: As shown in the accompanying interim statement of financial position and in note 7 of the accompanying financial statements, the Chairman of the board of directors (a shareholder) has a debit balance amounting to SR 3,739,659, which was collected subsequently on January 15, 2013.
  • The external auditors draw the attention to the fact that these financial statements are prepared according to IAS34 and not according to SOCPA and assure that there were no material differences related to the above mentioned fact.
  • Please note that the last financial year (i.e. Year 2011) for the Solidarity Saudi Takaful was a long stretched financial year that comprises of nearly twenty months (i.e. from 17/05/2010 to 31/12/2011), therefore please be aware in comparison as given above is between the regular financial year 2012 which comprises of regular 12 months and the last year 2011 which is the extraordinary financial year which comprises of nearly 20 months.
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