Gulf Insurance Group (GIG), one of the leading insurance companies in the Middle East, announced its annual financial results for the period ending on 2023-12-31, showing a strong performance across its business segments.
The company reported an increase in insurance revenue by SR 84 million or +5.7% as compared to the previous year, reaching SR 1,559 million in 2023. This was mainly driven by the growth in Property and Casualty and Health segments, which accounted for 46% and 36% of the total insurance revenue, respectively.
The net profit before zakat and tax increased by SR 121 million or +1,660% as compared to the previous year, reaching SR 128 million in 2023. This was mainly attributed to the increase in insurance underwriting results/profits by SR 250 million due to Motor and Health segments, which was partially offset by net underwriting losses by SR 173 million in Property and Casualty segments. The net profit was also boosted by the increase in investment income by SR 32.2 million.
The Gulf Insurance Group adopted IFRS 17 (Insurance Contracts) and IFRS 9 (Financial Instruments), as endorsed in Saudi Arabia, starting 1 January 2023, with retrospective application. This has materially changed the presentation of the financial results for periods starting Q1 2023 onwards with the comparative periods restated under the new standards.
The earnings per share (EPS) for the current year was SR 2.45 per share versus SR 0.3 per share for the same period of the previous year, which was calculated by dividing the net income amount of SR 128,526 thousand over the weighted average number of ordinary outstanding shares of 52,500 thousand for the current period and SR 15,913 thousand over 52,500 thousand for the same period of the previous year.
During the year, the company issued bonus shares which resulted in an increase in the number of shares by 2.5 million. This resulted in an increase in the number of shares from 50 million to 52.5 million during 2023.
The total comprehensive income for the current year was SR 150,806 thousand compared to the total comprehensive loss of SR 57,948 thousand for the previous year, an increase of 360%.
The total shareholder equity as at the end of the current year was SR 1,064,840 thousand versus SR 939,034 thousand as at the end of the previous year, an increase of 13.4%.
Gulf Insurance Group board of directors expressed their satisfaction with the results and thanked the shareholders, customers, employees, and regulators for their continued support and trust. The board also reaffirmed its commitment to achieving the company’s strategic objectives and enhancing its competitive position in the market.
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