Medgulf Insurance achieves profits of 201.5 million riyals by the end of 2023… and fourth-quarter profits of 60.9 million riyals

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company achieved profits of… 201.5 One million riyals by the end of 2023, compared to losses of 396.9 million riyals achieved during the same period in 2022.

The company said that the reason for achieving profits during the current period compared to losses for the similar period of the previous year is due to:

-Insurance revenues increased during this year by an amount of 689 million Saudi riyals compared to last year, an increase of 26.07%. This is mainly due to the growth in total written insurance premiums by an amount of 280.9 million Saudi riyals, a growth rate of 9.84%, driven by the strong performance of medical insurance, which grew by a percentage of 32.09% in addition to a large portion of vehicle insurance achieved during the year 2023 for the work of 2022.

– The result of insurance services improved by 672.2 million riyals compared to the previous year. This was driven by an increase in insurance revenues of 689.03 million riyals, an increase of 26.07%, accompanied by a smaller increase in insurance services expenses by 3.99%, or 115.8 million riyals, compared to the previous year, as a direct result of improving the underwriting policy and controlling costs.

– Net investment income increased by 89.7 million riyals compared to the previous year.

additional information:

The company also said that shareholders’ equity (no minority rights) at the end of the period amounted to 917,420 million riyals, compared to 706,718 million riyals, as at the end of the similar period of the previous year.

The accumulated losses at the end of the current period amounted to 257,129 million riyals, equivalent to 24.49% of the capital.

Total comprehensive income for the current period amounted to 210,702 million Saudi riyals, compared to a total comprehensive (loss) of (404,027) million Saudi riyals for the similar period of the previous year.

Statement of the type of auditor’s report: Unmodified opinion.

As stated in the auditor’s report, attention is drawn to Note No. (2) in the accompanying financial statements, which states that the Company did not meet the solvency margin requirements as of December 31, 2023. A deficiency in the solvency margin indicates the existence of a material uncertainty that may arise. cast doubt on the Company’s ability to continue as a going concern. However, the accompanying financial statements are prepared using the going concern assumption based on management’s assessment of the Company’s ability to continue as a going concern. The auditor’s opinion has not been modified with respect to this matter.

The company indicated:

The Company has reclassified and remeasured the financial statements to the prior year’s comparative figures to comply with the requirements of IFRS 17 and IFRS 9.

The Company has applied IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), in accordance with standards adopted in the Kingdom of Saudi Arabia, as of January 1, 2023 and retrospectively, which resulted in a fundamental change in the presentation of financial results for all periods starting from The first quarter of 2023 and re-measurement of similar periods from previous years according to the new standards.

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