LIVA Insurance Co. announces its Annual Financial Results for the Period Ending on 2024-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Insurance Revenues | 446,127 | 513,629 | -13.14 | ||
| Result of Insurance Services | 95,575 | 80,276 | 19.06 | ||
| Net Profit (Loss) of The Insurance Results | 26,748 | 13,505 | 98.06 | ||
| Net Profit (Loss) of The Investment Results | 31,233 | 24,942 | 25.22 | ||
| Net Insurance Financing Expenses | -2,000 | -3,564 | -43.88 | ||
| Net Profit (Loss), After Zakat, Attributable To Shareholders | 32,761 | 11,258 | 191 | ||
| Total Comprehensive Income | 50,559 | 14,835 | 240.81 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 440,551 | 389,992 | 12.96 | ||
| Profit (Loss) per Share | 0.82 | 0.28 | |||
| 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 | -22,387 | 5.6 | |
| 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 | The insurance revenues for the current year decreased by SAR (67,502) thousand (13.14%) compared to the previous year. This decline was primarily driven by the motor line of business, as the company maintained underwriting discipline. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The company achieved a net income before zakat for the current year SAR 33,478 thousand compared to SAR 17,427 thousand for the last year, an improvement of 92.10%. While the net income after Zakat achieved is SAR 32,761 thousand during the current year compared to SAR 11,258 thousand for the last year, an improvement of 191%, this was achieved mainly due to the following reasons:
• Improvement of the net insurance service result during the current year by SAR 13,243 thousand i.e. 98.06%, mainly driven by a decrease in insurance expenses for the current year. • The zakat provision during the current year decreased by 88.38% amounted to (SAR 717) thousand compared to (SAR 6,169) thousand • The net expense from reinsurance contracts held during the current year amounted to (SAR 68,425) thousand compared to (SAR 86,688) thousand in the last year decreased by 21.07%. • The investment income grew during the year by 25.22% and amounted to SAR 31,233 thousand compared to SAR 24,942 thousands in the last year. • The net insurance finance expense during the current year amounted to (SAR 2,000) thousand compared to (SAR 3,564) thousand in the last year with a decrease of 43.88%. The overall improvement has been partially offset by an increase on other operating expenses amounted to (SAR 22,503) thousand during the current year compared to (SAR 17,456) thousand in the prior year, increased by 28.91%. |
| 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 | The management has re-evaluated the presentation of insurance surplus payable to policyholders in the interim condensed statement of financial position to determine if such balances have been presented appropriately in line with the requirements of IFRS as endorsed in the Kingdom of Saudi Arabia. The surplus is payable to policyholders and in accordance with IFRS 17, the cashflows are part of the insurance contract boundary and should therefore form part of the insurance expenses. The surplus attributed to the insurance operations amounting to Saudi Riyals 8,563 thousand as of 31 December 2023, which was previously classified as part of accrued expenses and other liabilities.
The Company has restated the comparative information for the year ended 31 December 2023 and the ‘share of surplus from insurance pool’ amounting to SAR 19 million, have been presented separately from ‘other income’ in the statement of income. As a result, the “Total insurance service result” and “Net insurance and investment results” line items for such period have increased by the same amount. However, this change has had no impact on the statement of financial position as at 31 December 2023, 1 January 2023 and the related statements of changes in equity and cash flows for the year then ended, net profit for the year attributable to the shareholders or the basic and diluted earnings per share for the year then ended. |
| Additional Information | • The total comprehensive income during the current year amounted to SAR 50,559 thousand compared to SAR 14,835 thousand in the last year with an improvement of 240.81%.
• The Earnings per share during the current year amounted to SAR 0.82 compared to SAR 0.28 during the last year. The calculation of Earnings Per Share is based on the net income after zakat and income tax attributable to shareholders divided by the number of shares. • The net profit after zakat and income tax attributable to shareholders for the current year amounted to SAR 32,761 thousand, with a total of 40,000 thousand shares as of 31-12-2024. In comparison, during the last year, the net profit after zakat and income tax attributable to shareholders was SAR 11,258 thousand, with the same number of shares, 40,000 thousand shares, as of 31-12-2023G. • The total shareholders’ equity (after deducting the minority’s equity) amounted to SAR 440,551 thousand compared to SAR 389,992 thousand for the last year with an increase of 12.96%. • The total accumulated losses at the end of the current year are (SAR 22,387 thousand), compared to an accumulated loss of( SAR 55,148 thousand) for the last year. The total accumulated losses at the end of the current period represent (5.60%) of the capital compared to (13.79%) in the prior year. |
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