Amana Cooperative Insurance Co. said its accumulated losses fell to 34.77% of capital as of March 31, 2020.
The decline in losses was attributed to a 7% increase in gross written premiums and a 69% increase in gross revenue compared to Q1 2019, the company said in a bourse filing.
The change in doubtful debt calculation method as per the Saudi Arabian Monetary Authority’s (SAMA) circular was also cited among the reasons for cutting accumulated losses where doubtful debt provisions are calculated based on the outstanding installments.
According to data compiled by Argaam, the insurer clarified in its Q1 2020 financial statements that it has changed the method of calculating allowance for doubtful debts, from the date of starting the insurance policies to the due date of the installments, according to the payment terms mutually agreed with the clients and in accordance with the regulatory guidelines and the company's policies and procedures, which led to a decrease in the allowance for doubtful debts of SAR 4.65 million.
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