The Cooperative Insurance Company recorded a 66% decrease in profits to reach 20 million riyals at the end of the first quarter of this year, compared to profits of 59.1 million riyals achieved during the same period in 2021.
And according to Arab Net, the company explained in a statement today, Monday, that the reason for the decrease in profits is due to a decrease in the total profits of policyholders’ investments and shareholders’ funds investments by an amount of 12,182 thousand riyals, and an increase in other net operating expenses by an amount of 15,756 thousand riyals, as well as a decrease in the net underwriting income by 12,036 thousand riyals.
It added that the decrease in the net underwriting income of 12,036 thousand riyals is generally due to the increase in the net claims incurred by the amount of 375,096 thousand riyals, an increase of 23.77%, in addition to the increase in the costs of the insurance companies' share of the distribution of the due profits. An amount of 41,591 thousand riyals, an increase of 654.46%.
It is also due to the increase in the costs of acquiring documents, amounting to 8,825 thousand riyals, an increase of 10.08%.