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Salama Insurance Reports SAR 48.58M Loss in Q3 2025
SALAMA +0.42%
SALAMA 8050.SA | 9.64 | +0.42% |
On 2025-11-04 08:02:47 (Saudi Time), Salama Cooperative Insurance Co. announced its Interim financial results for the nine months ended on September 30, 2025. For the period, the company recorded revenue of SAR 409.34 million (down 24.6% YoY) and a net loss of SAR 48.58 million.
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Insurance Revenues | 136,729 | 177,581 | -23.004 | 140,731 | -2.843 |
| Result of Insurance Services | 2,907 | -116,529 | - | 15,619 | -81.388 |
| Net Profit (Loss) of The Insurance Results | -7,817 | 8,435 | - | -2,409 | 224.491 |
| Net Profit (Loss) of The Investment Results | 5,864 | 5,353 | 9.546 | 7,010 | -16.348 |
| Net Insurance Financing Expenses | -636 | -1,116 | -43.01 | -734 | -13.351 |
| Net Profit (Loss), After Zakat, Attributable To Shareholders | -9,448 | 5,888 | - | -3,711 | 154.594 |
| Total Comprehensive Income | -9,448 | 5,888 | - | -3,711 | 154.594 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
Year-on-Year Performance Drivers
Insurance revenues decreased by 24.6% YoY to SAR 409.34 million (USD 0.41 million) compared to SAR 542.91 million in the previous year, primarily due to increased gross unearned premiums, particularly in the motor insurance segment. The company's financial position shifted dramatically from a net profit of SAR 27.37 million in the previous year to a net loss of SAR 48.58 million (USD 0.05 million), despite a 7.42% increase in gross written premiums to SAR 437.5 million. This deterioration was mainly attributed to the significant increase in gross unearned premiums in the motor insurance segment, which negatively impacted the company's overall financial performance.
Quarter-on-Quarter Performance Drivers
QoQ insurance revenues decreased by 2.84% to SAR 136.73 million due to increased gross unearned premiums, primarily in the motor insurance segment. Net loss deepened by 154.59% to SAR 9.45 million compared to the previous quarter's loss of SAR 3.71 million, driven by increased gross unearned premiums and a SAR 1.14 million decrease in investment results due to lower rates of return. Despite this, gross written premiums increased significantly by 77.19% QoQ to SAR 174.21 million.
Other Items
Salama Cooperative Insurance Co.'s interim financial results for Q3 2025 show accumulated losses of SAR 58,238 thousand, representing 19.41% of capital. The external auditor issued an unmodified conclusion on the financial statements. Loss per share for the current period was SAR -1.62 compared to earnings of SAR 1.11 in the same period last year. Total shareholders' equity increased by 30.14% to SAR 303.47 million compared to the same period last year. The company disclosed a reclassification of comparative period information related to cash flow presentation of commission income to comply with IAS 7 requirements, which had no impact on net cash decrease or financial statements.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=91193&anCat=1&cs=8050&locale=arImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.
