MEDGULF sees loss at over 10% of net assets, potential impact on solvency

Logo of Mediterranean and Gulf Insurance and Reinsurance Co.

Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) said that net loss is likely to exceed 10% of its net assets, based on an analysis of the company’s pre-audited balance sheet for Q4 2022 by management and actuarial teams. 

If realized, this loss may adversely impact MEDGULF’s solvency under the Saudi Central Bank (SAMA) regulations, the insurer said in a statement to Tadawul. 

The review of the financial reports is still ongoing by internal and external advisors and auditors. 

MEDGULF is holding discussions with SAMA to assess the impact of any potential deterioration of its solvency on its activities, the statement said, adding that the company is considering any actions that may be required to fulfill SAMA obligations. 

The announcement aligns with the company’s keenness on full transparency with the shareholders, it noted. 

The details of the financial impact will be outlined in the disclosures of the audited financial statements for 2022, which will be published after auditing and approval on the Saudi Exchange (Tadawul) website, according to the relevant rules and regulations. 

The company will announce all material developments in due course, the statement noted. 

Tadawul halted trading on MEDGULF for one session on Feb. 12, upon the company’s request, Argaam reported.