ACIG says accumulated losses reach 82.28% of capital

Logo of Allied Cooperative Insurance Group

Allied Cooperative Insurance Group (ACIG) said, on March 29, that accumulated losses reached 82.28% of total capital, amounting to SAR 116.02 million, according to a statement to Tadawul.

The accumulated losses were primarily attributed to an increase in net claims incurred and policies acquisition costs, the statement said. ACIG also cited lower net profit from investments of policyholders and shareholders’ funds.

These losses were based on the company’s previous capital of SAR 141 million. The capital increase, approved by ACIG shareholders in December 2021, was not reflected on its 2021 financial results.

The capital increase to SAR 291 million will be reflected on Q1 2022 financial statements, ACIG added.

In December 2021, ACIG shareholders approved the board of directors’ recommendation to increase capital to SAR 291 million from SAR 141 million through a SAR 150 million rights issue.

The procedures and instructions related to listed companies with accumulated losses amounting to 20% or more of its share capital will apply.