Enaya says accumulated losses hit 40% of capital

Saudi Enaya Cooperative Insurance Co.’s accumulated losses have reached 40 percent of capital based on unaudited financial results issued on July 31, 2019.

The losses stand at SAR 120 million, or 40 percent of the firm’s capital of SAR 300 million, it said in a statement to Tadawul.

The insurer attributed the losses to an increase in technical reserves as recommended by its actuary to meet the potential claims for 2018.

This year’s performance in addition to several operational reforms should offset the losses and enhance results in the coming period, the company said.

Saudi Enaya will be subject to Capital Market Authority (CMA) regulations regarding companies with accumulated losses reaching 20 percent of capital or more, it added.