Saudi Indian Company for Cooperative Insurance (Wafa Insurance) has incurred SAR 83.3 million in accumulated losses, accounting for 40.6 percent of capital, the company said in a statement to Saudi bourse, Tadawul.
These losses were driven by a 239.6 percent year-on-year surge in net claims for 2015, due to an increase by SAR 99.7 million in technical provisions.
Wafa mapped out a number of restructuring procedures to boost growth and curb losses, including cutting capital, increasing productivity, introducing new products, raising the client base and reducing the fixed expenses through restructuring the operating activities.
The Saudi insurer will be subject to the CMA’s new rules governing listed companies with accumulated losses of more than 20 percent of their capital, as of April 22, 2017.
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