The preliminary financial statements of the Tawuniya Insurance Company showed a decrease in net profits by 20.99%, to reach 89.9 million riyals before zakat in the third quarter of 2021, compared to 113.79 million riyals in the same quarter of 2020.
According to Arabiya Net, on a quarterly basis, the company's profits decreased by 45.8% during the third quarter of 2021, compared to profits of 165.93 million riyals in the previous second quarter.
The company said in a statement on Tadawul Saudi Arabia, today, Thursday, that the reason for the decrease in net profit before zakat is mainly due to the increase in net other operating expenses by 79.52 million riyals.
The company stated that this increase was offset by a positive increase in net underwriting income by 23.63 million riyals, in addition to a positive increase in the total net profits of policyholders' investments and shareholders' funds by 26.139 million riyals.
According to the statement, the increase in net underwriting income in general is due to a positive increase in net earned premiums by 295.786 million riyals, an increase of 17.13%, in addition to the increase in net claims incurred by 263.701 million riyals, a growth of 18.72%.
The company pointed out a positive decrease in the costs of underwriting insurance policies by 6.542 million riyals, a decrease of 7.26%, as well as an increase in other underwriting costs by 7.484 million riyals, down 43.81%.
The costs of the insurance companies' share of the dividends distribution increased by 10.532 million riyals, or 113.34%.
During the first nine months of 2021, the data showed a decrease in profits by 17.6% to 336.65 million riyals, compared to profits of 408.96 million riyals in the same period of the previous year.
