Riyadh – Mubasher: Weqaya Takaful Insurance and Reinsurance announced that its accumulated losses reached SAR 298.14 million by the end of 2015, representing 149% of capital.
The company attributed the high accumulated losses to higher technical provisions in 2013, according to a bourse filing on Wednesday.
Stoppage of issuing or renewing any insurance policies by the company as per the Saudi Arabian Monetary Authority’s (SAMA) decision on 27 August 2014 also contributed to the rise of accumulated losses.
In 2014, the company liquidated all its investments which played a role in higher accumulated losses as well, the statement added.
Accumulated losses were attributable to the disapproval of the company’s request to increase its capital, in addition to higher claims incurred during 2014 and 2015.
Weqaya noted that it will apply a number of procedures and instructions issued by the Capital Market Authority (CMA) concerning the listed companies of which accumulated losses reached 20% or more of capital as of 22 April.
