Gulf National Union suffers losses of 16.9 million riyals in the third quarter
Gulf Union National Cooperative Insurance Company turned to a loss in the third quarter of 2025 of 16.9 million riyals, compared to profits of 11.5 million riyals in the same quarter of last year.
According to the company’s statement on the website "Saudi Arabia trading"The reason for the loss in the current quarter after Zakat, amounting to 16.9 million riyals, compared to profits amounting to 11.5 million riyals for the same quarter of the previous year, is due to losses in insurance services results amounting to 19.4 million riyals compared to a surplus in insurance services amounting to 7.2 million riyals for the similar quarter of the previous year.
This came as a result of an increase in insurance services expenses to 253.5 million riyals, compared to 193.8 million riyals for the similar quarter. From the previous year, that is, an increase of 59.7%, an increase of 30.8%.
The reasons included: an increase in net reinsurance contract expenses, which amounted to 24 million riyals for the current quarter, compared to 9 million riyals for the same quarter of the previous year, an increase of 15 million riyals, or a 167% increase.
The reasons included: an increase in net insurance financing expenses for the current quarter, which amounted to 3.5 million compared to 1.8 million riyals for the quarter. corresponding to the previous year, i.e. an increase of 1.7 million by 95%.
The reason for the decrease in the loss in the current quarter after zakat, amounting to 16.9 million riyals, compared to losses amounting to 27.9 million riyals for the previous quarter, is due to the decrease in the insurance services results deficit of 19.4 million riyals compared to 28.2 million riyals for the previous quarter, a decrease of 31%.
This came as a result of the decrease in insurance services expenses to 253.5 million riyals, compared to 263.4 million riyals for the previous quarter, i.e. a decrease of 4%.
The reasons included: a decrease in net reinsurance contract expenses, which amounted to 24 million for the current quarter compared to 25 million for the previous quarter, i.e. a decrease of 4%. Operating expenses also decreased for the current quarter, amounting to 5 million riyals compared to 8.9 million riyals for the previous quarter, i.e. a decrease of 44%.
The reason for the loss is For the current period (9 months), compared to the profits of the similar period of the previous year, the insurance services results reached a deficit of 88.3 million riyals for the current period compared to a surplus of 38.7 million riyals for the similar period of the previous year.
This came as a result of the increase in insurance services expenses, which amounted to 788.9 million riyals for the current period compared to 488.6 million riyals for the similar period of the previous year, i.e. an increase of 300.3 million riyals, by 61.5%,.
The reasons included: an increase in the expense of reinsurance contracts, which amounted to 65.7 million riyals for the current period, compared to 41.2 million riyals for the similar period of the previous year, by 59.5%. The net surplus share in insurance funds also decreased, reaching 2.7 million riyals for the current period, compared to 4.1 million riyals for the similar period of the previous year, a decrease of 1.4 million riyals, or 35%.
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