Salama Insurance profit falls 29% to SAR 21.5M profit in H1 2024, Q2 at SAR 11.4M

01/08/2024 Argaam Exclusive

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Salama Cooperative Insurance Co.’s profits dipped 29% to SAR 21.5 million in the first half of 2024, from SAR 30.3 million in the prior-year period.

Financials (M)

Item	6m 2023	6m 2024	Change‬
Gross Written Premium (GWP)	319.49	237.35	(25.7 %)
Insurance Revenues	404.82	365.33	(9.8 %)
Net Profit Before Zakat & Tax	32.30	23.48	(27.3 %)
Net Income	30.30	21.48	(29.1 %)
Average Shares	15.27	20.00	31.0 %
EPS (Riyals)	1.98	1.07	(45.9 %)

The first-half profits were hurt by a decline in revenue, mainly due to a drop in earned revenue. This is primarily due to a decline in gross written premiums (GWPs) for the current period in the company's compulsory vehicle insurance and health insurance sectors compared to the same period last year.

Moreover, net profit of the insurance results decreased by 0.60%, or SAR 0.14 million in H1 2024, compared to the same period of the previous year. Net insurance financing expenses increased in the current period by 39.86%, or SAR 0.56 million compared to the same period of 2023.

Other operating expenses increased by 30.08%, or SAR 3.73 in H1 2024, compared to the same period of the previous year.

Salama also reported a decrease of SAR 9.03 million in other revenues related to the share of surplus from the Hajj and Umrah coinsurance portfolios for the current period, compared to H1 2023.

The second-quarter net earnings fell 35% to SAR 11.4 million, from SAR 17.6 million in Q2 2023, due to a drop in revenue, mainly due to lower earned revenue and GWPs.

Net profit of the insurance results decreased by 02.93% year-on-year (YoY), while net insurance financing expenses saw a spike of 619.35%, or SAR 580,000 YoY. Other OpEx increased by 433.22% YoY.

Current Quarter Comparison (M)

Compared With The

Item	Q2 2023	Q2 2024	Change‬
Gross Written Premium (GWP)	153.64	103.39	(32.7 %)
Insurance Revenues	203.04	176.84	(12.9 %)
Net Profit Before Zakat & Tax	19.15	12.43	(35.1 %)
Net Income	17.65	11.43	(35.2 %)
Average Shares	15.27	20.00	31.0 %
EPS (Riyals)	1.16	0.57	(50.6 %)

Item	Q1 2024	Q2 2024	Change‬
Gross Written Premium (GWP)	133.96	103.39	(22.8 %)
Insurance Revenues	188.49	176.84	(6.2 %)
Net Profit Before Zakat & Tax	11.05	12.43	12.5 %
Net Income	10.05	11.43	13.7 %
Average Shares	20.00	20.00	-
EPS (Riyals)	0.50	0.57	13.7 %

Conversely, Salama’s bottom line jumped 13.7% on a sequential basis from SAR 10 million in Q1 2024.

Insurance Operations

Item	6m 2023	6m 2024	Change‬
Gross Written Premium (GWP)	319.49	237.35	(25.7 %)
Insurance Revenues	404.82	365.33	(9.8 %)
Insurance Services Income	22.75	22.61	(0.6 %)
Investment Income	10.23	14.57	42.4 %
Net Profit of Insurance Services and Investment	31.56	35.20	11.5 %

Shareholders’ equity, no minority interest, increased to SAR 226.46 million as of June 30, 2024, compared to SAR 91.15 million a year earlier.

Accumulated losses reached SAR 14.24 million by the end of the six-month period, representing 7.12% of the company’s capital.

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Financial results (Million)

Period	Net Income	Change	EPS(Riyal)	Net Profit Before Zakat & Tax	Change
Q1 2015	2.26	278.2 %	0.22	-	-
Q2 2015	1.69	(46.2 %)	0.17	-	-
Q3 2015	1.14	146.9 %	0.07	-	-
Q4 2015	(3.21)	(35.6 %)	(0.21)	-	-
2015	1.88	2.7 %	0.12	-	-
Q1 2016	1.25	(44.7 %)	0.08	-	-
Q2 2016	1.78	5.6 %	0.12	-	-
Q3 2016	7.49	555.0 %	0.49	-	-
Q4 2016	10.79	436.2 %	0.71	-	-
2016	21.30	1034.4 %	1.40	-	-
Q1 2017	12.93	935.8 %	0.85	14.18	-
Q2 2017	14.91	737.1 %	0.98	16.16	-
Q3 2017	20.78	177.5 %	1.36	22.03	-
Q4 2017	10.58	(1.9 %)	0.69	13.13	-
2017	59.19	177.8 %	3.88	65.49	-
Q1 2018	5.79	(55.2 %)	0.38	7.29	(48.6 %)
Q2 2018	7.53	(49.5 %)	0.49	9.03	(44.1 %)
Q3 2018	4.33	(79.2 %)	0.28	5.83	(73.5 %)
Q4 2018	(7.30)	(169.0 %)	(0.48)	(5.80)	(144.2 %)
2018	10.34	(82.5 %)	0.68	16.34	(75.0 %)
Q1 2019	(16.08)	(377.8 %)	(1.05)	(14.58)	(300.1 %)
Q2 2019	(36.88)	(589.9 %)	(2.42)	(35.38)	(491.9 %)
Q3 2019	(15.81)	(465.4 %)	(1.04)	(14.31)	(345.6 %)
Q4 2019	8.66	218.5 %	0.57	10.16	275.0 %
2019	(60.12)	(681.2 %)	(3.94)	(54.12)	(431.1 %)
Q1 2020	(26.90)	(67.3 %)	(1.76)	(25.40)	(74.2 %)
Q2 2020	31.20	184.6 %	2.04	32.70	192.4 %
Q3 2020	1.68	110.6 %	0.11	3.18	122.2 %
Q4 2020	0.95	(89.1 %)	0.06	2.45	(75.9 %)
2020	6.05	110.1 %	0.40	12.05	122.3 %
Q1 2021	(1.44)	94.7 %	(0.09)	0.06	100.3 %
Q2 2021	(1.42)	(104.6 %)	(0.09)	0.08	(99.8 %)
Q3 2021	(38.09)	(2364.8 %)	(2.50)	(38.09)	(1297.2 %)
Q4 2021	(71.46)	(7645.9 %)	(4.68)	(68.46)	(2897.7 %)
2021	(112.41)	(1958.0 %)	(7.36)	(106.41)	(983.1 %)
Q1 2022	(3.19)	(122.2 %)	(0.21)	(1.69)	(2742.2 %)
Q2 2022	(74.22)	(5,126.7 %)	(4.86)	(72.72)	(90998.8 %)
Q3 2022	(6.16)	83.8 %	(0.40)	(6.16)	83.8 %
Q4 2022	44.71	162.6 %	2.93	44.71	165.3 %
2022	(38.87)	65.4 %	(2.55)	(35.87)	66.3 %
Q1 2023	12.65	496.4 %	0.83	13.15	877.5 %
Q2 2023	17.65	123.8 %	1.16	19.15	126.3 %
Q3 2023	12.67	305.6 %	0.83	13.67	321.9 %
Q4 2023	8.33	(81.4 %)	0.42	9.33	(79.1 %)
2023	51.30	232.0 %	2.57	55.30	254.2 %
Q1 2024	10.05	(20.5 %)	0.50	11.05	(15.9 %)
Q2 2024	11.43	(35.2 %)	0.57	12.43	(35.1 %)

Period	Net Income	Change	EPS(Riyal)	Net Profit Before Zakat & Tax	Change
2014	1.83	104.3 %	0.18	-	-
2015	1.88	2.7 %	0.12	-	-
2016	21.30	1034.4 %	1.40	-	-
2017	59.19	177.8 %	3.88	65.49	-
2018	10.34	(82.5 %)	0.68	16.34	(75.0 %)
2019	(60.12)	(681.2 %)	(3.94)	(54.12)	(431.1 %)
2020	6.05	110.1 %	0.40	12.05	122.3 %
2021	(112.41)	(1958.0 %)	(7.36)	(106.41)	(983.1 %)
2022	(38.87)	65.4 %	(2.55)	(35.87)	66.3 %
2023	51.30	232.0 %	2.57	55.30	254.2 %

Insurance Operations Performance (M)

Compared With The

Period	Gross Written Premium (GWP)	Change	Insurance Services Income	Change	Net Profit of Insurance Services and Investment	Change
Q1 2015	113.68	29.2 %	-	-	-	-
Q2 2015	113.09	20.3 %	-	-	-	-
Q3 2015	84.80	13.3 %	-	-	-	-
Q4 2015	80.17	29.0 %	-	-	-	-
2015	391.74	22.8 %	-	-	-	-
Q1 2016	141.72	24.7 %	-	-	-	-
Q2 2016	141.49	25.1 %	-	-	-	-
Q3 2016	132.05	55.7 %	-	-	-	-
Q4 2016	156.10	94.7 %	-	-	-	-
2016	571.35	45.9 %	-	-	-	-
Q1 2017	227.88	60.8 %	-	-	-	-
Q2 2017	201.97	42.7 %	-	-	-	-
Q3 2017	158.98	20.4 %	-	-	-	-
Q4 2017	161.86	3.7 %	-	-	-	-
2017	750.69	31.4 %	-	-	-	-
Q1 2018	246.23	8.1 %	-	-	-	-
Q2 2018	224.27	11.0 %	-	-	-	-
Q3 2018	153.00	(3.8 %)	-	-	-	-
Q4 2018	111.48	(31.1 %)	-	-	-	-
2018	734.98	(2.1 %)	-	-	-	-
Q1 2019	150.96	(38.7 %)	-	-	-	-
Q2 2019	137.44	(38.7 %)	-	-	-	-
Q3 2019	95.16	(37.8 %)	-	-	-	-
Q4 2019	119.94	7.6 %	-	-	-	-
2019	503.50	(31.5 %)	-	-	-	-
Q1 2020	85.80	(43.2 %)	-	-	-	-
Q2 2020	96.62	(29.7 %)	-	-	-	-
Q3 2020	157.52	65.5 %	-	-	-	-
Q4 2020	87.68	(26.9 %)	-	-	-	-
2020	427.62	(15.1 %)	-	-	-	-
Q1 2021	118.24	37.8 %	-	-	-	-
Q2 2021	117.06	21.2 %	-	-	-	-
Q3 2021	125.32	(20.4 %)	-	-	-	-
Q4 2021	106.91	21.9 %	-	-	-	-
2021	467.53	9.3 %	-	-	-	-
Q1 2022	147.05	24.4 %	(2.15)	-	6.46	-
Q2 2022	192.78	64.7 %	(72.45)	-	(68.78)	-
Q3 2022	242.37	93.4 %	(15.31)	-	(12.83)	-
Q4 2022	209.91	96.3 %	51.91	-	56.76	-
2022	792.11	69.4 %	(38.00)	-	(18.39)	-
Q1 2023	165.85	12.8 %	11.56	637.3 %	15.63	142.0 %
Q2 2023	153.64	(20.3 %)	11.19	115.5 %	15.93	123.2 %
Q3 2023	268.09	10.6 %	14.68	195.9 %	21.15	264.8 %
Q4 2023	201.39	(4.1 %)	0.60	(98.8 %)	10.84	(80.9 %)
2023	788.97	(0.4 %)	38.04	200.1 %	63.55	445.6 %
Q1 2024	133.96	(19.2 %)	11.75	1.7 %	17.58	12.4 %
Q2 2024	103.39	(32.7 %)	10.87	(2.9 %)	17.63	10.6 %

Period	Gross Written Premium (GWP)	Change	Insurance Services Income	Change	Net Profit of Insurance Services and Investment	Change
2014	318.97	46.1 %	-	-	-	-
2015	391.74	22.8 %	-	-	-	-
2016	571.35	45.9 %	-	-	-	-
2017	750.69	31.4 %	-	-	-	-
2018	734.98	(2.1 %)	-	-	-	-
2019	503.50	(31.5 %)	-	-	-	-
2020	427.62	(15.1 %)	-	-	-	-
2021	467.53	9.3 %	-	-	-	-
2022	792.11	69.4 %	(38.00)	-	(18.39)	-
2023	788.97	(0.4 %)	38.04	200.1 %	63.55	445.6 %

Per Share Data (Riyal)

Compared With The

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
Q1 2015	10.11	0.35	0.35	2.89
Q2 2015	10.11	0.20	0.20	3.06
Q3 2015	15.27	0.18	0.18	11.47
Q4 2015	15.27	0.12	0.12	11.26
Q1 2016	15.27	0.06	0.06	11.34
Q2 2016	15.27	0.06	0.06	11.46
Q3 2016	15.27	0.48	0.48	11.95
Q4 2016	15.27	1.40	1.40	12.65
Q1 2017	15.27	2.16	2.16	13.50
Q2 2017	15.27	3.02	3.02	14.48
Q3 2017	15.27	3.89	3.89	15.84
Q4 2017	15.27	3.88	3.88	16.53
Q1 2018	15.27	3.41	3.41	16.91
Q2 2018	15.27	2.93	2.93	17.40
Q3 2018	15.27	1.85	1.85	17.69
Q4 2018	15.27	0.68	0.68	17.21
Q1 2019	15.27	(0.76)	(0.76)	16.16
Q2 2019	15.27	(3.66)	(3.66)	13.74
Q3 2019	15.27	(4.98)	(4.98)	12.70
Q4 2019	15.27	(3.94)	(3.94)	13.27
Q1 2020	15.27	(4.65)	(4.65)	11.51
Q2 2020	15.27	(0.19)	(0.19)	13.50
Q3 2020	15.27	0.96	0.96	13.61
Q4 2020	15.27	0.45	0.45	13.67
Q1 2021	15.27	2.12	2.12	13.59
Q2 2021	15.27	(0.01)	(0.01)	13.50
Q3 2021	15.27	(2.62)	(2.62)	11.00
Q4 2021	15.27	(7.36)	(7.36)	6.30
Q1 2022	15.27	(7.48)	(7.48)	7.41
Q2 2022	15.27	(12.25)	(12.25)	1.31
Q3 2022	15.27	(10.16)	(10.16)	0.91
Q4 2022	15.27	(2.55)	(2.55)	3.99
Q1 2023	15.27	(1.51)	(1.51)	4.81
Q2 2023	15.27	4.51	4.51	5.97
Q3 2023	15.27	5.74	5.74	6.80
Q4 2023	20.00	2.57	2.57	10.25
Q1 2024	20.00	2.44	2.44	10.75
Q2 2024	20.00	2.12	2.12	11.32

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
2014	10.11	0.18	0.18	2.67
2015	15.27	0.12	0.12	11.26
2016	15.27	1.40	1.40	12.65
2017	15.27	3.88	3.88	16.53
2018	15.27	0.68	0.68	17.21
2019	15.27	(3.94)	(3.94)	13.27
2020	15.27	0.40	0.40	13.67
2021	15.27	(7.36)	(7.36)	6.30
2022	15.27	(2.55)	(2.55)	3.99
2023	20.00	2.57	2.57	10.25

Multiple Ratios (End of Period Price)

Compared With The

Period	P/E	Adjusted P/E
Q1 2015	More than 100	More than 100
Q2 2015	More than 100	More than 100
Q3 2015	More than 100	More than 100
Q4 2015	More than 100	More than 100
Q1 2016	More than 100	More than 100
Q2 2016	More than 100	More than 100
Q3 2016	46.69	46.69
Q4 2016	18.95	18.95
Q1 2017	13.74	13.74
Q2 2017	11.75	11.75
Q3 2017	11.80	11.80
Q4 2017	13.74	13.74
Q1 2018	16.42	16.42
Q2 2018	15.61	15.61
Q3 2018	19.10	19.10
Q4 2018	49.77	49.77
Q1 2019	NEG	NEG
Q2 2019	NEG	NEG
Q3 2019	NEG	NEG
Q4 2019	NEG	NEG
Q1 2020	NEG	NEG
Q2 2020	NEG	NEG
Q3 2020	More than 100	More than 100
Q4 2020	More than 100	More than 100
Q1 2021	26.03	26.03
Q2 2021	NEG	NEG
Q3 2021	NEG	NEG
Q4 2021	NEG	NEG
Q1 2022	NEG	NEG
Q2 2022	NEG	NEG
Q3 2022	NEG	NEG
Q4 2022	NEG	NEG
Q1 2023	NEG	NEG
Q2 2023	4.85	4.85
Q3 2023	4.50	4.50
Q4 2023	7.56	7.56
Q1 2024	12.32	12.32
Q2 2024	12.71	12.71

Period	P/E	Adjusted P/E
2014	More than 100	More than 100
2015	More than 100	More than 100
2016	18.95	18.95
2017	13.74	13.74
2018	49.76	49.76
2019	NEG	NEG
2020	More than 100	More than 100
2021	NEG	NEG
2022	NEG	NEG
2023	7.56	7.56

Business Segments - Gross Premium Written (Million)

Compared With The

Period	Medical Insurance	Comprehensive Motor Insurance	Other classes
Q1 2015	10.62	95.01	8.06
Q2 2015	9.81	98.40	4.88
Q3 2015	3.76	76.81	4.22
Q4 2015	5.50	72.51	2.16
Q1 2016	10.78	123.59	7.35
Q2 2016	8.24	130.03	3.21
Q3 2016	4.08	123.46	4.52
Q4 2016	6.92	146.21	2.97
Q1 2017	26.25	193.06	8.57
Q2 2017	23.07	173.17	5.73
Q3 2017	12.71	138.97	7.31
Q4 2017	16.75	140.11	5.01
Q1 2018	19.22	217.89	9.12
Q2 2018	20.35	199.21	4.71
Q3 2018	50.62	98.48	3.90
Q4 2018	28.89	76.91	5.69
Q1 2019	23.47	122.14	5.36
Q2 2019	55.66	77.40	4.38
Q3 2019	21.12	69.11	4.75
Q4 2019	23.01	91.70	5.41
Q1 2020	21.09	58.55	6.16
Q2 2020	14.19	78.75	3.68
Q3 2020	28.63	122.32	6.58
Q4 2020	25.46	54.27	7.96
Q1 2021	19.78	89.20	9.26
Q2 2021	16.78	95.52	4.76
Q3 2021	25.37	92.14	7.81
Q4 2021	24.43	74.62	7.87
Q1 2022	29.94	108.46	8.65
Q2 2022	31.76	157.97	3.05
Q3 2022	40.23	195.49	6.65
Q4 2022	40.64	162.15	7.11
Q1 2023	37.14	119.15	9.57
Q2 2023	32.21	112.99	8.44
Q3 2023	34.39	214.26	19.44
Q4 2023	36.91	154.63	9.85
Q1 2024	32.26	84.35	17.35
Q2 2024	18.48	65.71	19.20

Period	Medical Insurance	Comprehensive Motor Insurance	Other classes
2014	37.21	263.67	18.10
2015	29.69	342.73	19.32
2016	30.02	523.29	18.05
2017	78.77	645.31	26.61
2018	119.08	592.48	23.43
2019	123.26	360.35	19.90
2020	89.36	313.90	24.37
2021	86.35	351.48	29.70
2022	142.58	624.07	25.46
2023	140.65	601.02	47.29

Financial Ratios

	Current
Market Cap (M)	420.80
Shares Outstanding (M)	20.00
EPS ( Riyal) (TTM)	1.79
Book Value (BV) ( Riyal)	11.62
Par Value ( Riyal)	10.00
Adjusted P/E (Last12)	11.79
P/E (TTM)	11.79
Price/Book	1.81
Return on Average Assets (%) (TTM)	4.8
Return on Average Equity (%) (TTM)	21.2
Return on Market Cap (%)	6.3

Salama Cooperative Insurance Co. (SALAMA)

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Salama Insurance profit falls 29% to SAR 21.5M profit in H1 2024, Q2 at SAR 11.4M

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Financials (M)

Current Quarter Comparison (M)

Insurance Operations

Financial results (Million)

Financial results (Million)

Insurance Operations Performance (M)

Insurance Operations Performance (M)

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Business Segments - Gross Premium Written (Million)

Revenue by Business Segment (Latest) 2024 Q2

Financial Ratios

Share Price

Salama Cooperative Insurance Co. (SALAMA)

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Salama Insurance profit falls 29% to SAR 21.5M profit in H1 2024, Q2 at SAR 11.4M

View other reports

Financials (M)

Current Quarter Comparison (M)

Insurance Operations

Financial results (Million)

Financial results (Million)

Insurance Operations Performance (M)

Insurance Operations Performance (M)

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Business Segments - Gross Premium Written (Million) Q2 2024

Revenue by Business Segment (Latest) 2024 Q2

Financial Ratios

Share Price

Salama Cooperative Insurance Co. (SALAMA)

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Business Segments - Gross Premium Written (Million)