The profits of the Mediterranean and Gulf Cooperative Insurance and Reinsurance Company MEDGULF decreased by 67% to reach 8.8 million riyals before zakat and tax in the second quarter of 2021, compared to a net profit of 27 million riyals recorded in the same quarter of the previous year.
According to Arabiya Net, the company attributed the reason for this decline, in a statement on the Saudi market's website, Tadawul, to the decline in net underwriting results by 43.3% as a result of the increase in claims incurred by 48.9% .
The company said that the profits from investments of shareholders' funds increased during the current quarter compared to the same quarter of the previous year, supported by the gains achieved from investments available for sale.
MEDGULF's net profit before zakat and tax also declined in the first half by 49% to 17.9 million riyals, compared to 35.2 million riyals in the same period in 2020.
The reason for the decline in net profit during the first half year-on-year is due to a 34.4% decrease in net underwriting results due to an increase in claims incurred by 30.8%, according to the company's statement.
