Gulf General’s accumulated losses reach 54.04% of capital

Logo of Gulf General Cooperative Insurance Co.

Gulf General Cooperative Insurance Co. announced that its accumulated losses amounted to 54.04% of capital as of March 31, 2025.

The accumulated losses attributable to the company's shareholders increased to SAR 162.12 million as of March 31, 2025. This was due to higher insurance service expenses, a decrease in investment income results, and elevated operating expenses, according to a Tadawul filing today, May 11.

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The company also stressed its commitment to exerting utmost efforts in implementing the board-approved corrective plan to address its financial position and solvency margin, while trimming general and administrative expenses. This is besides efforts to curtail losses in the individual motor insurance segment while also developing sales through digital channels in a bid to improve cost efficiency.

The deadline for the board of directors to publish recommendations for addressing Gulf General’s accumulated losses is July 5. The board also has until Nov. 2 to issue the EGM invitation to consider the company’s continuation.

Procedures and regulations applicable on Saudi-listed companies with their accumulated losses reaching 20% or more of capital will apply, it added.

The management is committed to comply with the relevant laws and regulations with regard to companies whose losses exceed 50% of the capital in terms of disclosure and preservation of shareholders' rights and interests.

The above dates are set according to the provisions of Article (132) of the Companies Law.