United Cooperative’s accrued losses exceed 50% of capital

United Cooperative Assurance Co. said on Tuesday that its accumulated losses reached SAR 160.5 million in 2014, or 57.3 percent of capital.

Based on regulations set by Saudi Arabia’s market regulator, the bourse-listed insurer will now have to disclose to its investors steps being taken to decrease losses, as well as publish monthly financial results.

The company said in a separate statement that audited results showed losses of SAR 80 million, or SAR 2.87 a share during 2014, compared to SAR 78.3 million the previous year. 

In its unaudited financials, United had recorded additional losses of SAR 25.2 million, mainly due to a SAR 25 million increase in provisions. 

Audited fourth quarter losses in 2014 were SAR 74.9 million, compared to unaudited preliminary losses of SAR 60.5 million.

Last week, United got the go-ahead from Saudi’s market regulator to increase its capital to SAR 490 million.