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Arabia Insurance Cooperative Company announces the interim financial results for the period ended on 30/06/2011 (six months)

Arabia Insurance Cooperative Company announces the interim financial results for the period ended 30/06/2011 as follows:

1. Net income during the second quarter is 5,254 thousand riyals, compared to net income of 2,240 thousand riyals for the same quarter of previous year, an increase of 134.60 % and compared to net income of 4,071 thousand riyals for the previous quarter, an increase of 29.06 %.

2. Surplus of insurance operations, net of policyholders return on investments (the results of operations) during the second quarter is 3,268 thousand riyals, compared to 1,743 thousand riyals for the corresponding quarter of previous year, an increase of 87.49 %.

3. Gross written premiums (GWP) in the second quarter is 104,065 thousand riyals, compared to 113,110 thousand riyals for the corresponding quarter of last year, a decrease of 8%. And net written premiums (NWP) during the second quarter is 67,982 thousand riyals, compared to 63,962 thousand riyals for the corresponding quarter of last year, an increase of 6.28%.

4. Net claims incurred during the second quarter is 44,180 thousand riyals, compared to 31,025 thousand riyals for the corresponding quarter of last year, an increase of 42.40%.

5. Return on investment of policyholders during the second quarter is 1,240 thousand riyals compared to 11 thousand riyals for the same quarter of previous year, an increase of 11173 %. Net return on shareholders funds during the second quarter is 1,588 thousand riyals, compared to 1,013 thousand riyals for the corresponding quarter of last year, an increase of 56.76%.

6. Net income during the six months is 9,325 thousand riyals, compared to net income of 6,043 thousand riyals for the corresponding period of previous year, an increase of 54.31 %.

7. Earnings per share for the six months is 0.47 riyal compared to earnings per share of 0.30 riyal for the corresponding period of last year.

8. Surplus of insurance operations, net of policyholders return on investments (the results of operations) during the six months is 6,747 thousand riyals, compared to 5,263 thousand riyals for the corresponding period of previous year, an increase of 28.20 %.

9. Gross written premiums (GWP) in the six months is 237,007 thousand riyals, compared to 259,183 thousand riyals for the corresponding period of last year, a decrease of 8.6%. And a net written premium (NWP) during the six months is 173,775 thousand riyals, compared to 181,728 thousand riyals for the corresponding period of last year, a decrease of 4.38%.

10. Net claims incurred during the six months is 96,257 thousand riyals, compared to 57,135 thousand riyals for the corresponding period of last year, an increase of 68.47%.

11. Return on investment of policyholders during the six months is 1,668 thousand riyals compared to 13 thousand riyals for the same period of previous year, an increase of 12731 %. Net return on shareholders funds during the six months is 2,588 thousand riyals, compared to 1,967 thousand riyals for the corresponding period of last year, an increase of 31.57%.

12. The increase of income is mainly due to the increase in net earned premiums. And the increase in investment income in compared to the same period of last year.

13 .Contained in the report of External Auditors that these condensed interim financial statements are prepared in accordance with International Accounting Standard 34 and not in accordance with the Standard on Interim Financial Reporting issued by SOCPA.

As stated in footnote (2), the company did not issue the condensed interim financial statements for insurance operations for the three and six months periods ended June 30th, 2010 and they were not published nor has a review report related thereto been issued.

The Company believes that there is no financial impact on the condensed interim financial statements as a result of their presentation in accordance with International Financial Reporting Standards instead of Financial Reporting Standards in Saudi Arabia.

© Tadawul 2011