The profits of the “Arab Shield” decreased to 6.5 million riyals in the first quarter

The profits of the Arab Cooperative Insurance Company decreased in the first quarter of 2025 by 73% to 6.5 million riyals, compared to 23.9 million riyals in the same quarter of last year.
According to the company’s statement on Saudi Arabia’s circulation, the reason for the decrease in the profits before Zakat and the income tax for the current quarter is 19,725 million riyals, at a rate of 67% compared to the similar quarter of the previous year mainly to the following reasons:
– The increase in insurance revenues is an amount of 60,582 million riyals, compared to the same quarter of the previous year, by 16%.
– A decrease in the net reinsurance contracts expenses of 20,578 million riyals, compared to the same quarter of the previous year, with a decrease of 27%.
– An increase in insurance services expenses is 85,579 million riyals, compared to the same quarter of the previous year and an increase of 27%.
– The net investment income decreased by 10,051 million riyals, compared to the same quarter of the previous year, a decrease of 34%.
– The net insurance financing expenses increased by 521 riyals compared to the same quarter of the previous year, an increase of 23%.
– The decrease in the expenses of other operational operations is 2,733 riyals compared to the same quarter of the previous year, a decrease of 39%
Moreover, the total number of premiums increased by 229,764 riyals compared to the same quarter of the previous year, an increase of 37%.
The reason for the increase in profits before the zakat and the income tax for the current quarter is 3,044 riyals, at 44% compared to the previous quarter, mainly to the following reasons:
– Improved results of insurance services to reach 53,503 riyals compared to (14,663) riyals for the previous quarter, and this improvement is the result of an increase in insurance revenues at an amount of 56,677 riyals compared to the previous quarter by 14%. A decrease in insurance services expenses of 11,489 riyals compared to the previous quarter, a decrease of 3%. It was met by an increase in the net expenses of the re -insurance contracts, an amount of 54,820 riyals, compared to the previous quarter, by 4,070%.
– The net investment income decreased by 650 riyals compared to the previous quarter, with a decrease of 3%.
– The net insurance financing expenses increased by 3,565 riyals, compared to the previous quarter, an increase of 485%.
– The increase in the expenses of other operating operations is 6,087 riyals, compared to the previous quarter, an increase of 337 %.
Moreover, the total number of premiums increased by 332,075 riyals compared to the previous quarter by 65%.