SABB Takaful Company announced earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company’s net profit before zakat was SAR 2,515,000, compared to net loss before zakat of SAR 9,981,000 for the same quarter a year ago. Net written premiums were SAR 43,976,000, compared to SAR 40,131,000 for the same quarter a year ago. Net profit of shareholders capital investment was SAR 2,733,000, compared to SAR 1,426,000 for the same quarter a year ago. The main reason for the increase in net profit is the decrease in change in reserve for takaful activities during the quarter compared with the same quarter last year which included a material increase in Reserve for Takaful Activities as a result of changing the calculation methodology (by having the reserve for takaful activities equals to the available for sale investments). Also, the reasons for increase in net profit are due to increase in NWP by 9.6%, increase investment income by 77.4% (due to increase in profit margins for Murabaha deposits and Sukuks), decrease in policy acquisition costs by 51.6% and decrease in G&A by 30.8% as result of increasing the supervision and inspection cost accruals during the same quarter last year. For the full year, the company’s net profit before zakat was SAR 11,855,000 or SAR 0.35 per share compared to SAR 3,640,000 or SAR 0.11 per share a year ago. Net written premiums were SAR 156,214,000, compared to SAR 169,637,000 a year ago. Net profit of shareholders capital investment was SAR 9,356,000, compared to SAR 5,073,000 a year ago. The main reason for the increase in net profit is the decrease in change in reserve for takaful activities during the period compared with the same period last year which included a material increase in Reserve for Takaful Activities as a result of changing the calculation methodology (by having the reserve for takaful activities equals to the available for sale investments). Also, the reasons for increase in net profit are due to a marginal increase in Fees and commission income by 2.7%, decrease in policy acquisition costs by 17.4%, increase in investment income by 70.7% (due to increase in profit margins for Murabaha deposits and Sukuks) and decrease in G&A by 11% as result of increasing the supervision and inspection cost accruals during the same period last year. This is despite the decrease in NWP by 7.9%, increase in surrenders & maturities by 26.3% and increase in net claims incurred by 171% (due to increase in claims during the period and the release of a contingency reserve of SAR 5.1 million during the same period last year).