Wafa says losses exceed 50% of capital

Saudi Indian Cooperative Insurance Co.’s (Wafa Insurance) accumulated losses rose to SAR 58.06 million representing 58.06 percent of its capital of SAR 100 million as sales remain weak, according to the company’s unaudited financial statements for Q2 2018.

The Capital Market Authority’s (CMA) instructions for listed companies whose accumulated losses amounted to 20 percent or more of capital will now apply to Wafa, the insurer said in a statement to Tadawul.

The firm said it notified its board of directors on July 28.

An extraordinary general assembly meeting will be schedule latest by September 11 to address the situation to avoid dissolving the company, in accordance with the company’s law.