The accumulated losses of Saudi Enaya Cooperative Insurance Company deepened to SAR 120 million or 40% of the company’s capital that is valued at SAR 300 million, according to the company’s unaudited financial statements dated 31 July 2019.
The company attributed the losses to higher technical precautions executed as per the actuary’s recommendations on dealing with the potential claims of written documents of 2018, Saudi Enaya disclosed on Tuesday.
The financial results of fiscal year 2019 along with other operating modifications may help limit the losses and improve the coming results, the company predicted.
The procedures and instructions of the listed companies whose accumulated losses exceed 20% of capital will be applied on Saudi Enaya, according to the disclosure.
It is worth noting that during April 2019, Saudi Enaya’s accumulated losses plunged to SAR 45.67 million representing 15.2% of capital, after increasing the firm’s capital through issuing preemptive rights worth SAR 200 million.