The Saudi Capital Market Authority (CMA) decided to place a trading halt on the shares of Solidarity Saudi Takaful Co. for two hours on Monday after the company's accumulated losses reached SAR 340.6 million, or 61.37 percent of its capital.
Order maintenance will start at 12:30 pm.
The regulator will also put a yellow flag on the company’s name on Tadawul’s website.
The insurer said these losses were mainly attributed to higher technical provisions that accounted for 67 percent of total losses.
These losses were unrealized and took the form of provisions for expected claims going forward, Solidarity said in a statement on Tadawul.
According to CMA regulations, the company must now disclose its monthly financial statements within 10 days from the end of each financial period.
It is also required to disclose any adjustments to its status promptly.
Solidarity said it will report its financial results upon completing the regulatory procedures.
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