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Gulf Union accumulated losses reach 33% of capital

Gulf Union accumulated losses reach 33% of capital
Losses reached SAR 74 million by the end of last year - (Photo Credit: Arabianeye-Reuters)
GULF UNION ALAHLIA
8120
89.33% 23.78 11.22

Riyadh - Mubasher: Gulf Union Cooperative Insurance reported that its accumulated losses have reached SAR 73.6 million, representing 33.55% of the company’s capital, according to the financial results of 2016.

The company said in a statement to the Saudi Stock Exchange (Tadawul) that losses are attributed to the increase in provisions.

Gulf Union reiterated its commitment to the guidelines of the Saudi Capital Market Authority (CMA) for companies with accumulated losses ranging between 20% and 35% of total capital.

In March, the company appointed Alawwal Capital as the financial advisor for its capital reduction by 31.82% from SAR 220 million to SAR 150 million, as recommended by the company’s board of directors.

The capital cut proposal targets the restructure of the capital to be in line with the New Companies Law.

The insurance company received the Saudi Arabian Monetary Agency's (SAMA) approval in October on decreasing its capital.