Mediterranean & Gulf Insurance & Reinsurance Co. (MedGulf) has recorded SAR 733.970 million in accumulated losses, accounting for 73.4 percent of capital, the company said in a statement to Saudi bourse, Tadawul.
These losses were driven by a 60.5 percent drop in net premiums and an increase in bad debt provisions by SAR 358 million.
Also, lower profit from shareholder investments was attributed to a 54.8 percent tumble in commissions’ income as well as lower profit from available-for-sale investments.
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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