| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Insurance Revenues | 858,313 | 1,049,578 | -18.22 | ||
| Result of Insurance Services | -27,709 | 266,442 | - | ||
| Net Profit (Loss) of The Insurance Results | -226,017 | 21,471 | - | ||
| Net Profit (Loss) of The Investment Results | 10,898 | 14,563 | -25.17 | ||
| Net Insurance Financing Expenses | -1,986 | -2,508 | -20.81 | ||
| Net Profit (Loss), After Zakat, Attributable To Shareholders | -256,220 | -15,055 | 1,601.89 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -243,735 | 3,159 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 24,579 | 268,314 | -90.84 | ||
| Profit (Loss) per Share | -6.41 | -0.38 | |||
| 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 | -451,837 | -112.96 | |
| 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 for the current year amounted to SAR 858,313 thousand, compared to SAR 1,049,578 thousand during the previous year, a decrease of 18.22%, which is principally due to decline in business. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The net loss after Zakat for the current year amounted to SAR 256,220 thousand, compared to a net loss after Zakat of SAR 15,055 thousand during the previous year. This was primarily due to the following factors: • Net loss of the insurance results for the current year amounted to SAR 226,017 thousand compared to a net profit of the insurance results amounted to SAR 21,471 during the previous year, due to the combined effect of increase in insurance service expenses and decrease in insurance revenue, mainly impacted by motor operating segment. • Net investment income for the current year reached SAR 10,898 thousand, down by 25.17% from SAR 14,563 thousand in the previous year. The drop is mainly due to the decrease in size of the investment portfolio. Gross Written Premiums (GWP) for the current year amounted to SAR 622,952 thousand, reflecting a 46.14% decrease compared to SAR 1,156,692 thousand in the previous year. |
| Statement of the type of external auditor's report | Conservation |
| 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 auditors draw attention to note 13 in the financial statements, the Company carries goodwill amounting to SAR 78.4 million as at 31 December 2025. Management performed an impairment assessment, with the support of an independent expert, and concluded that no impairment of goodwill is required. In our view, the impairment assessment, in particular the determination of the recoverable amount, is based on market capitalisation without sufficient adjustments or reconciliation, and is therefore not consistent with the requirements of IAS 36 Impairment of Assets and IFRS 13 Fair Value Measurement. In addition, limited consideration has been given to value in use based on future cash flows. Consequently, we are unable to agree with management’s conclusion that the carrying amount of goodwill is fully recoverable. Accordingly, the carrying amount of goodwill may be materially overstated. The impact of this matter on the financial statements has not been determined. The external auditors draw attention to note 1(d) in the financial statements which indicates that the Company incurred a net loss of SR 256.22 million for the year ended 31 December 2025 and had accumulated losses of SR 451.84 million as of 31 December 2025. These losses exceeded the Company’s share capital as at the year end, and it also reported negative net operating cash outflows of SR 183.28 million for the year end. These events and conditions, along with other matters as set forth in note 1 in the financial statements, indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. The external auditors opinion is not modified in respect of this matter. |
| Reclassification of Comparison Items | None |
| Additional Information | The loss per share (LPS) for the current year is SAR (6.41) per share versus SAR (0.38) per share for the previous year which is calculated by dividing the net loss for the year attributable to the shareholders after Zakat of SAR 256,220 thousand over the weighted average number of ordinary outstanding shares of 40,000 thousand for the current year and a net loss attributable to the shareholders after Zakat of SAR 15,055 thousand over 40,000 thousand shares for the previous year. Total comprehensive loss for the current year is SAR 243,735 thousand, compared to total comprehensive income of SAR 3,159 thousand in the previous year. Total shareholders’ equity as of the end of the current year is SAR 24,579 thousand, a decrease of 90.84% from SR 268,314 thousand at the end of the previous year. Referring to the fact that the Company's accumulated losses have reached 112.96% of its capital for the year ending December 31, 2025, the Company will continue to apply the procedures and instructions applicable to listed companies whose accumulated losses exceed 50% of their capital. In reference to the qualified opinion included in the auditor’s report concerning the impairment assessment of the Company’s goodwill as at 31 December 2025, the Company wishes to clarify the following: In accordance with the requirements of International Accounting Standard 36 “Impairment of Assets” and IFRS 13 "Fair Value Measurement", the company has proactively taken measures in this regard by appointing a Taqeem‑certified external valuation specialist company licensed by the Saudi Authority for Accredited Valuers, to perform an independent impairment assessment of goodwill. Based on the impairment assessment performed by the valuation specialist company, it was concluded that the recoverable amount of goodwill exceeded its carrying amount as at 31 December 2025 and, on this basis, the management concluded that no impairment of goodwill was required to be recognised in the financial statements. As disclosed in the auditor’s report, the qualified opinion arises from a difference in professional judgment of the management and its independent expert, with the auditors, regarding the application of the impairment assessment methodology. |
