MetLife AIG ANB’s accumulated losses exceed 50% of capital

MetLife AIG ANB Cooperative Insurance Co. announced that based on unaudited financial results of February 2018, accumulated losses have exceeded 50 percent of capital.

The losses stand at about SAR 180.7 million, or 51.6 percent of the firm’s capital of SAR 350 million.

The insurer attributed the losses to high general and administrative expenses and reporting an unexpected loss in Q4 2017 from the medical insurance business.

MetLife AIG ANB will be subject to Capital Market Authority (CMA) regulations concerning companies with accumulated losses exceeding 20 percent of capital.

The CMA on Sunday approved the company’s request to reduce its capital from SAR 350 million to SAR 180 million, leading to a decrease in the number of shares from 35 million to 18 million.

Last month, the insurer’s board of directors had recommended the 48.57 percent capital reduction, with the aim to restructure the company’s capital to offset SAR 170 million in accumulated losses, Argaam previously reported.