| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Insurance Revenues | 558,377 | 678,479 | -17.7 | ||
| Result of Insurance Services | -38,015 | -19,547 | 94.48 | ||
| Net Profit (Loss) of The Insurance Results | -88,301 | 33,872 | - | ||
| Net Profit (Loss) of The Investment Results | 27,147 | 26,155 | 3.79 | ||
| Net Insurance Financing Expenses | -3,186 | -3,220 | -1.05 | ||
| Net Profit (Loss), After Zakat, Attributable To Shareholders | -91,564 | 30,123 | - | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -80,376 | 49,347 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 269,896 | 254,326 | 6.12 | ||
| Profit (Loss) per Share | -3.05 | 1.23 | |||
| 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 | -101,222 | 33.74 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in revenues during the current year compared to the last year is | Insurance revenue decreased during the current year by SAR 120.10 million compared to the previous year, which amounting to SAR 558.38 million for the current year compared to SAR 678.48 million for the previous year, with a decrease of 17.70%. This decrease is mainly attributable to the increase in gross unearned premiums, specifically in motor and medical insurance segments. This comes despite an increase in gross written premiums during the current year by SAR 128.52 million, reaching to SAR 655.09 million for the current year compared to SAR 526.57 million for the previous year, with an increase of 24.41%. This increase was also driven by higher gross written premiums in the motor and medical insurance segments. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Net loss before Zakat attributable to shareholders of the Issuer for the current year amounted to SAR (90.04) million, compared to a net profit before Zakat attributable to shareholders of the Issuer of SAR 28.62 million for the previous year. Net loss after Zakat attributable to shareholders of the Issuer for the current year amounted to SAR (91.56) million, compared to a net profit after Zakat attributable to shareholders of the Issuer of SAR 30.12 million for the previous year. The reasons for the net loss after zakat for the current year, compared to the net profit after zakat for the previous year, are mainly due to the following: 1- A decrease in insurance revenue for the current year by SAR 120.10 million, with a decrease of 17.70% compared to the previous year, as a result of the increase in gross unearned premiums, specifically in motor and medical insurance segments. 2- In addition to the above, net incurred claims increased by SAR 11.96 million for the current year compared to the previous year. 3- Net technical reserves also increased by SAR 8.31 million for the current year compared to the previous year, mainly due to the increase in loss component reserve, which represents the liability for remaining coverage. 4- Zakat provision also increased by SAR 3.22 million for the current year compared to the previous year. 5- In addition, the Company recorded non-recurring expenses related to the merger transaction amounting to SAR 3.82 million for the current year compared to the previous year. This comes despite the Company saving in expenses of net reinsurance premiums, after deducting earned reinsurance commissions, by SAR 29.34 million for the current year compared to the previous year. Gross written premiums for the current year amounted to SAR 655.09 million compared to SAR 526.57 million for the previous year, with an increase of 24.41%. |
| Statement of the type of external auditor's report | Unmodified opinion |
| 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) | None |
| Reclassification of Comparison Items | During the year ended 31 December 2025, management of the Company reassessed the presentation of certain transactions and concluded that a reclassification is required to comply with the requirements of International Financial Reporting Standards that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”). Accordingly, management has restated the comparative statement of cash flows for the year 2024. where in accordance with International Accounting Standard 7 - Statement of Cash Flows (“IAS 7”), as endorsed in the Kingdom of Saudi Arabia, all cash received from commission income on financial assets not measured at FVTPL should be presented separately within operating activities in the statement of cash flows and commission income earned from such financial assets should be included as non cash transaction adjustment within operating activities. Previously, only commission income received from Sukuks which are measured at amortised cost was separately disclosed in investing activities, and commission income earned and received on other financial assets not measured at FVTPL were omitted. Management has corrected this error by separately presenting all commission income earned and received in operating activities which includes commission income received from Sukuks to ensure compliance with IAS 7. The reclassification had no impact on the net decrease in cash and cash equivalents in the statement of cash flows, statement of financial position, statement of comprehensive income, or statement of changes in equity. |
| Additional Information | The Company’s accumulated losses as of 31 December 2025 amounted to SAR (101.22) million, representing 33.74% of share capital. The main reasons that led to the accumulated losses are as follows: 1- A decrease in insurance revenue for the current year by SAR 120.10 million, with a decrease of 17.70% compared to the previous year, as a result of the increase in gross unearned premiums, specifically in motor and medical insurance segments. 2- In addition to the above, net incurred claims increased by SAR 11.96 million for the current year compared to the previous year. 3- Net technical reserves also increased by SAR 8.31 million for the current year compared to the previous year, mainly due to the increase in loss component reserve, which represents the liability for remaining coverage. 4- Zakat provision also increased by SAR 3.22 million for the current year compared to the previous year. 5- In addition, the Company recorded non-recurring expenses related to the merger transaction amounting to SAR 3.82 million for the current year compared to the previous year. This comes despite the Company saving in expenses of net reinsurance premiums, after deducting earned reinsurance commissions, by SAR 29.34 million for the current year compared to the previous year. The main components of the accumulated losses of SAR (101.22) million are as follows: a) Opening balance of SAR (5.61) million. b) Net loss after Zakat attributable to shareholders of the Issuer for the current year 2025 amounting to SAR (91.56) million. c) Expenses related to the share capital increase through rights issue, which commenced during 2024 and was completed at the beginning of 2025, amounting to SAR (4.05) million. Based on the above, the procedures and instructions of the Capital Market Authority applicable to the listed companies whose accumulated losses reach 20% or more of their share capital will be applied. Loss per share for the current year amounted to SAR (3.05) per share compared to earnings per share of SAR 1.23 per share for the previous year. This was calculated by dividing the net loss attributable to shareholders of the Issuer after Zakat of SAR (91.56) million by the weighted average number of ordinary shares outstanding of 30 million shares during the current year, and by dividing the net income attributable to shareholders of the Issuer after Zakat of SAR 30.12 million by the weighted average number of ordinary shares outstanding of 24.57 million shares for the previous year. Where earnings per share for the previous year have been adjusted based on the weighted average number of ordinary shares after taking into the consideration the increase in the Company’s share capital through the rights issue during 2024 and 2023. Total shareholders’ equity (no minority interest) at the end of the current year amounted to SAR 269.58 million compared to SAR 253.60 million at the end of the previous year, with an increase of 6.30%. Total equity at the end of the current year amounted to SAR 269.90 million compared to SAR 254.33 million at the end of the previous year, with an increase of 6.12%. Total comprehensive loss attributable to shareholders of the Issuer at the end of the current year amounted to SAR (80.38) million compared to total comprehensive income attributable to shareholders of the Issuer of SAR 49.35 million for the previous year. |
