Al Sagr Cooperative Insurance Company reduced its losses to record 26.8 million riyals at the end of the first quarter of this year, compared to losses of 41.38 million riyals in the same period last year.
According to Arab Net, the company explained in a statement that the reason for the decrease in losses during the first three months of 2022 compared to the same period in 2021 is due to the increase in net premiums earned by 19.4 million riyals (26%), and an increase in investment and other revenues by an amount of 6.2 million riyals (92%).
The company attributed the reason for the increase in losses during the first quarter of 2022 compared with the previous quarter to an increase in net claims incurred by an amount of 9.2 million riyals (10.17%), an increase in additional insurance premium reserves and other technical precautions by an amount of 8.3 million (508%), as well as a decrease in Investment and other income amounted to 15.5 million riyals (54%).
The company stated that shareholders' equity (there are no minority rights) at the end of the period amounted to 179.584 million riyals, compared to 249.045 million riyals at the end of the same period last year.
The company pointed out that the accumulated losses at the end of the current period amounted to 223.791 million riyals, or 55.95% of the capital.
Al-Saqr Insurance Company announced yesterday that it had received a letter from the Saudi Central Bank, including approval to reduce the company's capital by 260 million riyals, so that the capital becomes 140 million riyals after the reduction.
This comes after the board of directors' recommendation to reduce the company's capital.
The company will continue to fulfill all the requirements of the official authorities, and announce any developments, if they become available.
It is worth mentioning that the two Gulf Union National Cooperative Insurance Company and Al Sagr Insurance Company signed a non-binding memorandum of understanding to assess the feasibility of the merger together.
The two companies indicated that the work of the memorandum of understanding ends when they sign the merger agreement or after a period of nine months from the date of the memorandum of understanding, whichever comes first.
In the event that the merger agreement is signed, the deal will be completed by a share exchange method, whereby Gulf Union National Company will issue new shares to the shareholders of Al Sagr Insurance Company in exchange for all the issued shares in Al Sagr Insurance Company upon completion of the merger.
