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00:00 We will talk about this topic with Mr. Hussam Abdelaziz Al-Qannas, CEO of the Saudi Cooperation
00:09 Security Union.
00:10 Welcome to our show on CNBC Arabic.
00:13 First, please tell us about the increase in capital, and how the company's plans and
00:20 actions will be used to increase capital in the coming period.
00:24 Welcome, ladies and gentlemen.
00:30 As you mentioned, yesterday, the company's capital was increased from 450 million to
00:41 500 million.
00:42 After the regulatory side was resolved, and there was a development on the subject yesterday,
00:50 the company's acceptance of the statement was not opposed by the Security Authority to
00:57 continue the subject with other parties related to it.
01:02 Of course, there will be an increase in capital through the expansion plan support, whether
01:09 it is in sales channels, whether it is in the actual channels or the digital sales channels,
01:16 and also to support the company's capital base and strengthen its financial guarantee,
01:22 which is called the Solvency Margin.
01:25 Of course, as the specialists know, this is a very important factor in the process of
01:31 supporting financial guarantee for any insurance company, and also to benefit from the current
01:37 interest rates, which we believe are relatively high at the moment, and therefore support
01:42 the company's non-operational returns, knowing that investment is a major part of the
01:47 activity of insurance companies, whether locally or globally, and therefore it is almost classified
01:53 as an operational return, not a non-operational one.
01:57 Mr. Hussam Al-Qarnas, I mean, there is no doubt that you are trying to seize opportunities
02:03 through this increase in this period.
02:06 Can we talk about the company from the inside, in terms of your insurance products, and what
02:13 is the greatest impact on the company's refusal of money, and to what extent can there be
02:21 development in this increase?
02:25 Of course, the company works from its foundation, almost in all types of insurance, whether it
02:35 is public insurance in various types, or health insurance, and we have several products,
02:41 or car insurance, and we also have several products that serve the end consumer, whether
02:47 the end consumer is individuals or companies.
02:51 Of course, for example, most companies in the market form mandatory insurance, or medical
02:59 insurance, and various car insurance, the larger the operating operations, and therefore,
03:07 of course, the focus is on all types of insurance.
03:13 And also, this is one of the company's strategies over the past few years, to achieve growth
03:20 in all indicators, whether it is indicators related to profitability, or indicators related
03:26 to production support, and the increase in production, and the support of different sales
03:33 channels.
03:34 Mr. Hussam, you talked about the increase in capital, but are there any other financial
03:40 channels that you currently have, or are you in debt, that you use this money for the
03:46 expansion operations in this context?
03:53 No, the company, since its foundation, has not only received funding in a debt-free way,
04:01 but it has also raised its capital through priorities.
04:10 This will be the fourth raise in capital, and it was all done through the remaining profits
04:19 of the company, and therefore, the company grows on its own through the profits it achieves,
04:27 and therefore, the transformation of these accumulated profits into capital over the past
04:33 years, since its establishment or licensing in 2009.
04:37 Good.
04:38 How much is the company's cash flow today?
04:45 The truth is that I do not have cash flow, but at the level of ownership rights, the company,
04:53 according to the latest announced financial figures, which are the third quarter of 2023,
05:01 has increased its ownership rights by 14%, from about 565 million to about 644 million.
05:09 And also, of course, the assets were also raised by a percentage, pardon me, the assets
05:19 had a slight decrease due to, of course, the decrease in investments in the previous period.
05:27 Profits rose by about 800, more than 800% from 2008.
05:32 Indeed, there was a double in your profits for the past nine months, but in light of this
05:38 change, we are waiting for the results of the last quarter.
05:41 In your opinion, today's expectations, I mean, do we also witness, in terms of the distribution
05:47 policy, how will it be?
05:49 Will it also be satisfactory to investors and better than the previous years?
05:53 Of course, the issue of distribution in general, whether it is cash distributions or through
06:00 a market grant, is of course a decision that remains with the board of directors and the
06:05 general association of the company.
06:08 But in general, of course, as we see today, the insurance sector is generally in the Kingdom
06:14 is heading towards a large expansion, towards greater mandatory insurances.
06:19 We saw in the past years how the trend was in the growth of the insurance sector and the
06:25 growth of the sectors in general and the growth of mandatory insurances.
06:28 Are there any government contracts with the company?
06:30 Have any agreements been drawn with the Saudi government regarding insurance?
06:35 For example, all companies in the market ultimately have clients from ministries and government
06:45 bodies and from commercial companies and individuals.
06:49 Nothing has been announced due to its size, meaning as government contracts, but it may
06:56 be in the near future.
07:00 But we have government contracts and we have all kinds of clients, whether they are commercial
07:07 companies or individuals.
07:09 Thank you, Mr. Hussam Abdelaziz Al-Ghannas, CEO of the United Nations Cooperation Insurance
07:16 Company.
07:17 Thank you for being with us.