Saudi Re announces 2012 financial results

Net income for the Twelve months before Zakat and tax is SR28,951,773 compared to net loss SR34,305,879 for the same period previous year. Net income for the Twelve months after Zakat and tax is SR8,984,174 compared to net loss SR54,423,325 for the same period previous year.

Earnings per share for the Twelve months is SR0.290, compared to loss per share of SR0.343 for the same period previous year.

Surplus in reinsurance operations for the Twelve months, excluding investment income from policyholders' investments, is SR8,636,509 compared to deficit SR37,386,230 for the same period previous year.

The Gross written premium (GWP), for the Twelve months is SR245,031,947 compared to SR159,609,384 for the same period previous year, an increase of 54%. The net written premiums (NWP), for the Twelve months is SR219,285,679 compared to SR91,533,718 for the same period previous year, an increase of 140%.

The net claims incurred for the Twelve months is SR92,238,426 compared to SR58,452,018 for the same period previous year, an increase of 58%.

The net investment income from policyholders' investments for the Twelve months is SR684,266, compared to SR303,091 for the same period previous year, an increase of 126%. The net investment income from shareholders' investments for the Twelve months is SR30,919,199 compared to SR20,978,668 for the same period previous year, an increase of 47%.

The net Income for the Twelve months is due to the increase in Net earned premium by 190% compared with the same period previous year, which had a direct impact in the underwriting results improvement, and the decrease in General and administrative expenses by 5% compared with the same period previous year, Also the net income from the shareholders investments portfolio increased by 47% compared with the same period previous year.

Certain comparative figures have been reclassified to conform to the presentation of current period.

Mr. Fahad Al-Hesni, MD-CEO of Saudi Re, said, "Saudi Re efforts to grow and diversify its portfolio have resulted in achieving a growth rate of 54% in GWP in 2012 recording SR245.03m. We remained focused on our technical performance and were able to mark a turnaround from a net loss of SR54.42m in 2011 to a net profit of SR8.98 in 2012 and a positive EPS of SR0.290 in 2012 compared to a negative EPS of SR0.343 in 2011. The 2012 results clearly reflect the positive performance in underwriting, investment and expense management."