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Allied Cooperative Insurance Group (ACIG) announces the preliminary financial results for the period ended 30/6/2011 (six months)

Allied Cooperative Insurance Group ( ACIG ) announces the preliminary financial results for the period ended 30/6/2011 as follows:

1)Net profit during the second quarter is SR 158 thousand riyals, compared to a net loss of 4,689 thousand riyals for the same quarter of the previous year, and compared to net profit of 623 thousand riyals for the previous quarter, a decrease 75%.

2)Net surplus of insurance operations after deducting the return on investments of the policyholders (the results of operations) during the second quarter of 316 thousand riyals, compared to deficit in amount 4,693 thousand riyals for the same quarter of the previous year,

3)Total gross written premiums (GWP) in the second quarter is 41,389 thousand riyals, compared to 11,260 thousand riyals for the same quarter of the previous year, an increase of 268%. Net written premiums (NWP) is 36,725 thousand riyals in the second quarter, compared to 6,947 thousand riyals for the same quarter of the previous year, an increase of 429%

4)Net claims incurred during the second quarter is 16,969 thousand riyals compared to 359 thousand riyals for the same quarter of previous year, an increase of 4,627%

5)There is no investment income for the policyholders during the second quarter and there is no investments income to policyholders for the same quarter of the previous year, net profits of investment funds of the shareholders during the second quarter is 1 thousand riyals, compared to 89 thousand riyals for the same quarter of the previous year, an decrease of 99%.

6)Net profit during the six months is 781 thousand riyals compared to net loss 9,662 thousand riyals for the same period of the previous year.

7)Earnings per share for the six-month are 0.08 riyals compared to 0.97 riyals for the same period of the previous year.

8)Surplus of insurance operations after deducting the investments of the policyholders (the results of operations) through six months is 1,148 thousand riyals, compared to deficit in amount 9,628 thousand riyals for the previous quarter.

9)Total gross written premiums (GWP) during the six months is 89,052 thousand riyals, compared to 17,195 thousand riyals for the same period of the previous year, an increase of 418%. Net written premiums (NWP) during the six months is 75,436 thousand riyals, compared to 8,902 thousand riyals for the same period of the previous year, an increase of 747%.

10)Net claims incurred during the six months is 27,010 thousand riyals, compared to 559 thousand riyals for the same period of the previous year, an increase of 4,732%.

11)Net income of investment of the policyholders during the six months of 47 thousand riyals, and there is no investments to policyholders during the corresponding period of the previous year, a increase 100%, and net profits of investments funds of the shareholders within six months 37 thousand riyals compared to 165 thousand riyals for the same period last year, a decrease of 77%.

12)The main reason for transfer the loss to profit with during the second quarter due to :
The total insurance revenues increase to 32,239 thousand riyals compared 2,348 thousand riyals in the same period of the previous year
The net claims incurred increase to 16,969 thousand riyals compared 359 thousand riyals in the same period of the previous year with the stability of general & admin expenses.

13)There is classification in some items

The external auditor issued his report with a paragraph to draw attention to the following (Without qualifying our conclusion, we draw attention to the fact that these condensed interim financial statements are prepared in accordance with IAS 34 and not in accordance with the Standard on Interim Financial Reporting issued by SOCPA.

We further draw attention to Note 6 to the interim condensed financial statements, which states that the Board of Directors has considered the financial position of the company and is taking steps to increase its share capital from SR 100 million to SR 200 million. The ability of the Company to continue operations as a going concern is dependent upon future profitable operations and the success of the proposed increase in share capital. The accompanying interim condensed financial statements have been prepared on the assumption that the Company will continue in business as a going concern, and do not include any adjustments that might result from the outcome of this uncertainty.

© Tadawul 2011