Allied Cooperative Insurance Group (ACIG) reported a net profit before Zakat of SAR 7.1 million for the fiscal year 2019, an increase of more than three-fold year-on-year (YoY), compared to SAR 2.4 million a year earlier.
Gross Written Premium (GWP)
Net Profit Before Zakat & Tax
The increase in profits is due to a rise in gross written premiums by 6%, net written premiums by 3%, net earned premiums by 7%, and reinsurance commission earned by 72%.
The company also cited lower policy acquisition cost by 15%, increase in profit of policyholders investments by 10%, and reversal of doubtful debts provision to SAR 227,000.
This was offset by an increase in net incurred claims by 11%, decrease in other underwriting income by 80%, and higher general and administrative expenses by 1%.
In Q4 2019, the insurer posted a net profit of SAR 2 million compared to a net loss of SAR 1.8 million in Q4 2018.