Saudi Enaya accumulated losses exceed 50% of capital

Saudi Enaya Cooperative Insurance Company (Saudi Enaya) on Tuesday said accumulated losses have exceeded 50 percent of capital based on unaudited financial results of Q1 2018.

The losses stand at about SAR 149 million, or 74.50 percent of the firm’s capital of SAR 200 million, it said in a statement to Tadawul.

The insurer attributed the losses to the increase in technical reserves as recommended by its actuary to meet the potential claims.

Saudi Enaya will be subject to Capital Market Authority (CMA) regulations regarding companies with accumulated losses exceeding 20 percent of capital.

In March, the insurer said it technical reserves will increase by SAR 490,000 based on a recommendation from the appointed actuary.