ACIG says accumulated loss at 51.97% of capital

ACIG attributes accumulated losses to technical and operational factors

Allied Cooperative Insurance Group (ACIG) said its accumulated losses reached 51.97% of capital, as per preliminary financial results for the period ended on March 31, 2026, according to a statement to Tadawul.

The accumulated losses of SAR 151.24 million were attributed to technical and operational factors, including the rise in net incurred claims in some insurance segments, particularly motor insurance.

The insurer also noted an increase in technical provisions according to regulatory and actuarial requirements, which affected the results of the current period. In addition, it cited higher operating expenses due to the development of technical systems and the enhancement of digital infrastructure efficiency.

The company is currently working on implementing a comprehensive plan to address the financial situation and enhance solvency margins through reviewing pricing policies and technical risks in collaboration with the actuarial department, in addition to expanding balanced-performance products and diversifying the insurance portfolio.

ACIG also highlighted boosting efficiency of claims management and enhancing digital transformation to improve service levels and cost control.

The management confirmed it continues to implement the approved corrective measures, ensuring compliance with regulatory requirements and achieving financial sustainability in the upcoming periods

Procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reach 20% or more out of the capital thereof will be applied.

The company's management is committed to the required procedures, regulations, and relevant rules concerning companies whose losses have exceeded 50% of their capital in terms of disclosure and safeguarding the rights and interests of shareholders.