Amana Insurance’s accumulated losses reach 54.9% of capital

Logo of Amana Cooperative Insurance Co.

Amana Cooperative Insurance Co.’s accumulated losses reached SAR 236.06 million as of Sept. 30, 2026, representing 54.9% of its capital.

In a statement to Tadawul, the company attributed the increase in accumulated losses mainly to technical and operational factors, most notably higher operating costs not directly attributable to insurance contracts and a decline in insurance service results due to higher total incurred claims and directly attributable expenses.

The company said its board recommended on Aug. 10 reducing capital from SAR 430 million to SAR 301 million to write off part of the accumulated losses.

The reduction remains subject to approval by shareholders at the extraordinary general meeting (EGM), the Capital Market Authority (CMA), the Insurance Authority (IA), and other relevant regulatory bodies.

Its plan to address its financial position and strengthen its solvency margin includes improving operational efficiency, reviewing pricing policies and technical risks in coordination with the actuarial department, investing in technology and expanding digital channels, as well as expanding its range of products with balanced performance and diversifying its insurance portfolio.

The company said the board’s deadline to disclose its recommendations regarding the accumulated losses is Jan. 2, 2027, while the final date to call an EGM to consider the company’s continuation is May 2, 2027.

Amana Insurance confirmed that it will apply the procedures and instructions for listed companies whose accumulated losses reach 20% or more of capital, in addition to complying with the requirements for companies whose accumulated losses exceed 50% of capital.

According to Argaam data, the company reported a Q3 2026 loss of SAR 25.02 million.