Al-Etihad Insurance's accumulated losses reach 50.4% of capital

Logo of Al-Etihad Cooperative Insurance Co.

Al-Etihad Cooperative Insurance Co. announced that its accumulated losses reached SAR 251.97 million, representing 50.4% of its SAR 500 million capital, according to its 9M 2026 financial statements.

In a statement to Tadawul today, Nov. 5, the insurer attributed the accumulated losses mainly to continued losses in net insurance results.

The company is implementing a comprehensive corrective plan to address its financial position and improve operating performance. The board will submit its recommendations to the extraordinary general assembly (EGM) within the statutory timeframe.

The company set Jan. 3, 2027, as the deadline for the board to disclose its recommendations regarding the accumulated losses and May 3, 2027, as the deadline for calling an EGM to consider whether the company should continue operating.

Al-Etihad Insurance noted that these deadlines align with Article 132 of the Companies Law, which requires a company's board to disclose when accumulated losses reach half of its issued capital, along with its recommendations, within 60 days of becoming aware of the situation.

The board must also call an EGM within 180 days of becoming aware of the losses.

The insurer confirmed that it will comply with the procedures and instructions applicable to companies listed on the Saudi Exchange whose accumulated losses reach 20% or more of their capital.

Al-Etihad Insurance will continue taking the necessary measures to address accumulated losses and improve its financial and operational performance, the statement said.