The profits of “Al -Ittihad Insurance” decreased to 49.13 million riyals in 2024

Al -Ittihad Cooperative Insurance Company’s profits in 2024 decreased by 47.7% to 49.13 million riyals, compared to 93.89 million riyals in 2023.
According to the company’s statement on the circulation of Saudi Arabia, the reason for the decrease in the net profit after Zakat is due to the decrease in the net profit of insurance results by 29% as a result of the decrease in the company’s share of the profits of the insurance vessels managed at the sector level, and the decrease in net profits of the investment results by 50%.
This was met with a decrease in the net financing expenses by 24%, and an increase in other unproductive revenues of 3.3 million riyals.
The reason for the decrease in the net comprehensive income in the current year compared to the previous year is due to the above -mentioned reasons, in addition to an increase in the fair value of the company’s investment in Najm Insurance Services Company (Najm) during the year 2024 with a lower amount than the restricted amount during the year 2023.
It should be noted that the decrease in the results of the investment during the current year compared to the previous year is the result of the re -clinic to the debts of a customer to sukuk as a result of the financial reorganization plan for this customer and after that a customized credit losses for these sukuk were registered with an amount of 34 million riyals that were previously registered with the same amount as the allocated credit losses on the city’s receivables that are classified under the umbrella of insurance revenues, meaning that there is no any Financial impact on the company’s profit is the result of re -classification of these receivables.