Gulf Insurance Group — Earnings Release 2011

Jul 20, 2011

Further announcement from AXA Cooperative Insurance Company on the interim financial results for the period ended 30/6/2011. (Six Months)

8250 · 20/07/2011 08:41:39 · Announcement #22415 · View on Saudi Exchange

Further announcement from AXA Cooperative Insurance Company on the interim financial results for the period ended 30/6/2011. (Six Months)

It was stated in Item number 1 on the announcement that the company registered a net income for the second quarter ended June 30, 2011 of 1,153 thousand Riyals compared to a net loss of 62 thousand Riyals for the same quarter of previous year and compared to a net loss of 9,462 thousand Riyals for the previous quarter.

The company has recorded a profit in the second quarter of 2011 compared to a loss in the first quarter of 2011 due to reduction in the loss ratio. Quarter 1 was impacted by Jeddah flood losses in January. The expenses in quarter 2 are also lower since the first quarter was impacted by additional doubtful debts provisions of SAR 6.5M.

The profit in quarter 2 of 2011 compared to a loss in same quarter of last year is due to higher earned premium in the second year of operation, higher expense ratio in the first year due to low premium base and higher reinsurance commission in quarter 2 of 2011 from higher reinsurance cessions

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