United Cooperative Assurance Co. announces its Interim Financial Results for the period ending on 2025-06-30 ( Six Months ) | premargin

United Cooperative Assurance Co. announces its Interim Financial Results for the period ending on 2025-06-30 ( Six Months )

TadawulAugust 5, 2025View on exchange

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	211,278	216,793	-2.543	219,153	-3.593
Result of Insurance Services	-34,553	27,371	-	27,847	-
Net Profit (Loss) of The Insurance Results	-77,730	8,191	-	-22,485	245.697
Net Profit (Loss) of The Investment Results	2,773	3,605	-23.079	3,940	-29.619
Net Insurance Financing Expenses	-416	-2,087	-80.067	-1,183	-64.835
Net Profit (Loss), After Zakat, Attributable To Shareholders	-81,541	296	-	-23,320	249.661
Total Comprehensive Income	-81,541	296	-	-20,812	291.798
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	430,431	466,400	-7.712
Result of Insurance Services	-6,706	94,247	-
Net Profit (Loss) of The Insurance Results	-100,215	21,440	-
Net Profit (Loss) of The Investment Results	6,713	7,227	-7.112
Net Insurance Financing Expenses	-1,599	-2,055	-22.189
Net Profit (Loss), After Zakat, Attributable To Shareholders	-104,861	5,305	-
Total Comprehensive Income	-102,353	5,305	-
Total Shareholders Equity (after Deducting Minority Equity)	165,961	270,460	-38.637
Profit (Loss) per Share	-2.62	0.13
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-300,478	75
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the revenues during the current quarter compared to the same quarter of last year is	Insurance revenues for the current quarter amounted to SR 211,278 thousand, compared to SR 216,793 thousand for the same quarter of the previous year. This represents a decrease of 3%, which was principally driven by the decline in the earned premium.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Net loss after Zakat of SR 81,541 thousand for the current quarter, compared to a net profit of SR 296 thousand for the same quarter in 2024, which was principally driven by a 30% increase in insurance service expenses. Total Gross written premiums during the current quarter amounted to SR 263,552 thousand compared to SR 234,407 of the same quarter for the previous year, which represents an increase of 12%.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	Insurance revenues for the current quarter decreased by SR 7,875 thousand compared to the previous quarter, a decrease of 4%. as a result of the decline in the earned premium.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	Net loss after Zakat increased in the current quarter in comparison to the previous quarter of the current year, this was due to the increase in the insurance service expenses by SR 54,525 thousand, an increase of 29%. Total Gross written premiums during the current quarter amounted to SR 263,552 thousand compared to SAR 230,777 thousand of the previous quarter, an increase of 14%.
The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is	Insurance revenues for the current period amounted to SR 430,431 thousand, compared to SR 466,400 thousand for the same period of the previous year. This represents a decrease of 8%, which was principally driven by the decline in the earned premium.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Net loss after Zakat of SR 104,861 thousand for the current period, compared to a net profit of SR 5,305 thousand for the same period in 2024, which was principally driven by a 17% increase in insurance service expenses and a 28% increase in net expenses from reinsurance contracts. Total Gross written premiums during the current period amounted to SR 494,329 thousand compared to SR 626,202 thousand of the same period for the previous year, with a decrease of 21%.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	The external auditor’s report draws attention to note 1 to the interim condensed financial information which indicates that the Company had accumulated losses of Saudi Riyals 300.5 million as of 30 June 2025 (31 December 2024: Saudi Riyals 195.6 million). Further, the Company’s solvency margin is 6% as of 30 June 2025, which is below the minimum solvency requirements as mandated by the Insurance Authority (“IA”). The ability of the Company to improve its financial performance and meet the minimum solvency margin requirements is dependent on the favourable outcome and realisation of the Company’s planned measures and actions detailed further in note 1. These events and conditions, along with other matters as set forth in note 1 to the accompanying interim condensed financial information, indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Reclassification of Comparison Items	None
Additional Information	The earnings per share EPS/LPS calculated based on Net Profit/Loss after Zakat. Loss per share for the current period is SR 2.62 versus a profit per share of SR 0.13 for the same period of the previous year, which is calculated by dividing the net loss after Zakat of SR 104,861 thousand over the weighted average number of ordinary outstanding shares of 40,000K for the current period and a net profit after Zakat of SR 5,305 thousand over 40,000K shares for the same period of the previous year. Total comprehensive loss for the current period is SR 102,353 thousand compared to total comprehensive income for the same period from last year of SR 5,305 thousand. Total Shareholders’ Equity at the end of the current period is SR 165,961 thousand versus SR 270,460 thousand as at end of the same period of the previous year, a decrease of 39%. The accumulated losses at the end of the current period are SR 300,478 thousand, which is 75% of the paid-up Capital of SR 400,000 thousand based on the condensed interim Financial Statements for the period ended 30-06-2025. The major reason which caused this increase in the accumulated losses are the increase in insurance service expenses. Therefore, the company will apply the procedures and instructions for companies listed in Saudi Capital Market whose accumulated losses reached 50% or more of the Share Capital.