ASHIELD announces its Financial Results

21/02/2013 09:17 AST

Arabian Shield Cooperative Insurance Company announces its Financial Results for the year ending 31/12/2012 as follows:

1.The net profit before Zakat and Income Tax is 9,244 thousand Saudi Riyals compared to net profit of 16,409 thousand Saudi Riyals for the previous year decreased by 43.7 %.

2.Earnings per share are 0.46 Saudi Riyals compared to 0.82 Saudi Riyals for the previous year.

3.Surplus from insurance operations excluding investment income from policyholders investments portfolio is 7,229 thousand Saudi Riyals compared to 17,495 thousand Saudi Riyals for the previous year decreased by 58.7 %.

4.Total Gross written premiums (GWP) is 331.538 thousand Saudi Riyals compared to 274,237 thousand Saudi Riyals for the previous year increased by 20.9 % and the Net written premiums (NWP) is 250,491 thousand Saudi Riyals compared to 185,142 thousand Saudi Riyals for the previous year increased by 35.3 %.

5.The net claims incurred is 181,497 thousand Saudi Riyals compared to 132,110 thousand Saudi Riyals for the previous year increased by 37.4 %.

6.The net investment income from Policyholders investments portfolio is 972 thousand Saudi Riyals compared to 447 thousand Saudi Riyals investment income for the previous year increased by 117.5 %. The net investment income from Shareholders investment portfolio is 2,758 thousand Saudi Riyals compared to net income of 1,726 thousand Saudi Riyals for the previous year increased by 59.8 %.

7.The decrease in the net profits for the current period compared to the equivalent period from the previous year is due to the increase in the claims incurred expenditures supporting expansion of retail operations which is expected to produce results in the medium term.

8.The auditors reports draws attention to the fact that the Financial Statements are prepared in accordance with International Financial Reporting Standards (IFRS) and not in accordance with accounting standards generally accepted in the Kingdom of Saudi Arabia issued by SOCPA. The Company assures that there are no material differences or substantial impact on the interim financial statements as a result of preparation, according to the international standards over the accounting standards issued by SOCPA.

9.Up to 30 June 2012, the Company reported zakat and income tax as a period expense in the Statement of Shareholders' Operations.

With effect from 30 September 2012, the Company reports zakat and income tax as Other Comprehensive Item in the Statement of Shareholders' Comprehensive Income and the Statement of Changes in Shareholders' Equity.

As a result of this, Earnings per Share are now calculated on underlying profit before provision for zakat and income tax. The comparative figures for the year ended 31 December 2011 have been restated.

Tadawul