Alinma Tokio Marine Co. (Alinma Tokio M) accumulated losses for fiscal year 2016 stood at SAR 158.3 million, accounting for 35.19 percent of capital, the company said in a statement.
The Saudi insurer attributed these losses to pre-operating costs and the accumulated claims.
Last March, Alinma obtained the approval of the Saudi Arabian Monetary Authority (SAMA) on its request to reduce its capital by 33.3 percent from SAR 450 million to SAR 300 million.
The move, if approved by the insurer’s extraordinary general assembly, would cut the company’s accumulated losses from 35.19 percent to 2.78 percent of paid-in capital.
The insurer will be subject to the Capital Market Authority’s new rules governing listed companies with accumulated losses of over 20 percent of their capital, as of April 22, 2017.
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