Riyadh – Mubasher: Saudi Re for Cooperative Reinsurance Co. on Sunday said its profits more than halved in the second quarter of 2018.
Saudi Re logged SAR 6.436 million ($1.72 million) in net profits before Zakat in Q2-18, down 52% year-on-year from SAR 13.409 million ($3.57 million).
Quarter-on-quarter, the insurance firm’s profits decreased 15.28% from SAR 7.596 million, according to a filing to the Saudi Stock Exchange (Tadawul).
Saudi Re’s gross written premiums (GWPs) amounted to SAR 62.188 million in Q2-18, down 48.57% from SAR 120.914 million in the year-ago period, while net written premiums (NWPs) dropped 51.44% to SAR 43 million from SAR 88.574 million in Q2-17.
Net incurred claims stood at SAR 93.41 million in Q2-18, up 1.6% from SAR 91.938 million in the same period of 2017.
The insurance firm attributed the profit fall to a drop in net shareholders' investments income by 55% and a decrease in net policyholders' investments income by 48%, added to a 4% decline in net earned premiums by 4%.
As for the six-month period ended 30 June 2018, Saudi Re registered SAR 14.03 million in net profit before zakat, down 32.84% year-on-year from SAR 20.89 million.
Earnings per share (EPS) stood at SAR 0.17 in H1-18 against SAR 0.26 in the same period of 2017.
GWPs amounted to SAR 590.57 million in H1-18, up 2.31% from SAR 577.260 million in the year-ago period, while NWPs grew 3.07% to SAR 535.324 million from SAR 519.39 million in H1-17, the statement showed.
Net incurred claims increased 3.68% to SAR 205.913 million in H1-18 versus SAR 198.597 million in the corresponding period of 2017.
Saudi Re attributed the drop in H1-18 profits to lower net income on the back of a 91% drop in net policyholders' investments income and 61% fall in net shareholders' investments income during the period.
Saudi Re for Cooperative Reinsurance Co. previously posted a 1.5% year-on-year rise in net profits to SAR 7.59 million in Q1-18 from SAR 7.48 million the year before.
By 11:27 am Saudi time, Saudi Re’s stock tumbled 2.76% to SAR 7.76.
