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SNIC Insurance has posted a robust net profit of BD4.86 million attributable to the shareholders for the year ended December 31, 2023, representing a significant increase of 347 per cent compared to a loss of BD1.97 million for 2022.
The remarkable growth in net profit is primarily due to non-recurring gain, amounting to BD3.58m resulting from the reclassification of equity accounted investee, Wataniya Insurance Company, headquartered in Saudi Arabia, in which SNIC's stake was reduced from 25pc to 11.25pc due to a change in SNIC's investment strategy.
The investment portfolio generated an income of BD3m compared to a loss of BD1.5m in 2022.
The consolidated investment result demonstrated substantial growth, increasing by 601pc from a loss of BD1.25m to a profit of BD6.25m. This remarkable growth in the investment results boosted the shareholders' equity, which stood at BD21.30m, reflecting 30pc increase compared to BD16.44m in the previous year.
The insurance revenue reported by the company as of December 31, 2023 stood at BD12.63m, reflecting a decrease of 7pc compared to BD13.59m in 2022.
The insurance service result also experienced a decline, with a loss of BD0.58m compared to a loss of BD0.02m last year.
This decrease was primarily influenced by inflationary burdens in the medical and motor sectors, which had an adverse impact on portfolio performance.
To address this issue and align with the underwriting policy, proactive measures have been implemented to enhance technical performance and maintain competitiveness in the market.
SNIC Insurance general manager Khalid Al Shaikh expressed his satisfaction with the results that strengthened the company's financial position.
He said, "While the company stands on a strong financial position, we have placed several measures to improve the technical results and continue offering our customers with innovative modern solutions and seamless digital experience.
Mr Al Shaikh concluded: "As we continue to push the boundaries and embrace innovative technologies, I am confident that SNIC Insurance will continue fulfill the evolving needs of our customers and meet their growing expectations."
SNIC Insurance is an associate of Munich Re Group, the world's largest reinsurer and a subsidiary of EA Juffali & Brothers, a family-owned conglomerate operating in Saudi Arabia.
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