Tawuniya advised to increase technical reserves

The Company for Cooperative Insurance (Tawuniya) has been advised by an actuarial expert to increase its technical reserves to meet potential claims, the insurer said in a statement to Tadawul.

Adopting the recommendation is expected to negatively impact the firm’s financial results for the fiscal year 2017, it added.

Tawuniya will appoint an independent auditor to validate the reserves’ amount and the financial impact, and include the details in its 2017 financial statement.

The impact of additional technical reserves will be limited to the income statement of the year’s insurance operations, and will not affect the strength of the company’s financial position or cash flows, the statement added.