The profits of Walaa Cooperative Insurance Company decreased by 62.83% to reach 10.53 million riyals before zakat during the second quarter of 2021, compared to 28.35 million riyals in the same period of the previous year.
According to Arab Net, the company said in a statement that the reason for the decrease in net profit before zakat and income tax during the current quarter is due to the increase in net claims and other benefits incurred by 139.6 million. riyals, at a rate of 169.21%, and an increase in other underwriting expenses by 10.75 million riyals, or by 178.94%, on an annual basis.
The company indicated an increase in general and administrative expenses by 7.82 million riyals, or 27.83% year on year, while the costs of underwriting insurance policies increased by 1.62 million riyals, an increase of 13.65%.
Walaa stated that other underwriting revenues decreased by 7.96 million riyals, or 99.51%. This corresponds to an increase in the net insurance premiums earned by 60.81 million Saudi riyals, or 31.01%.
The data showed a decrease in the reserves of additional insurance premiums and other technical reserves by 50.30 million Saudi riyals, or 104.64%, in addition to an increase in the reinsurance commission by 8.41 million riyals. Saudi Arabia, by 87.98%, and a decrease in the allowance for doubtful debts by 5.71 million riyals, or 57.35%, and an increase in income and commission income from investments by 21.22 million riyals, or 553.80%.
As for the results of the first half of 2021, Walaa shifted to recording losses before zakat amounting to 13.3 million riyals, compared to profits of 17.53 million riyals in the same period of 2020.
