Salama Cooperative Insurance Company achieved net profits of 3,182 million riyals before zakat and tax in the third quarter of 2020, compared to losses of 14,313 million riyals during the same quarter of the year Previous.
According to Arabiya Net, the company clarified in a statement that the reason for the increase in net profits in the current quarter compared to the losses realized in the same quarter of the previous year is due to a decrease in net claims. Incurred by 28%, and an increase in policyholders' investment return of 364%, which was partly offset by a decrease in net earned premiums of 18%.
The company recorded a net profit before zakat and tax amounting to 9.6 million riyals with the end of the first nine months in 2020, compared to a loss of 64 million riyals during the same period of the previous year .
The reason for profits in 9 months compared to net losses for the same period of the previous year is the decrease in net claims incurred by 44%, and a decrease in general and administrative expenses by 17%, Which was partly offset by a 30% decrease in Net Earned Premiums
The company announced earlier that the company's actual solvency margin increased by 31% over the required solvency margin, according to the requirements of the executive regulations of the Cooperative Insurance Companies Control System.
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and the company stated that it is still continuing to implement its plan to raise the required solvency margin, and the company will announce any developments in this regard in a timely manner in the future.
The Saudi Salama Cooperative Insurance Company announced a decrease in its accumulated losses to 19.59% of the capital, equivalent to 48.98 million riyals on June 30, 2020.
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