ACIG Announces its Accumulated Losses Reaching 82.28% of Capital

The Allied Cooperative Insurance Group (ACIG) announced on Wednesday that its accumulated losses reached 82.28% of the capital, amounting to SR116,015 thousand.

Major Reasons Leading to the Losses;

• Increase in the net incurred claims.
• Decrease in net profits from investments of policyholders’ funds.
• Decrease in net profits from the investments of shareholders’ funds.
• Increase of policy acquisition cost.

Procedures and instructions applicable on companies listed in Saudi Capital Market whose accumulated losses reach 20% or more out of the capital thereof will be applied.

The company clarified to our valued shareholders that the percentage of accumulated losses has been calculated from the previous capital, which amounts to SR141 million.

“We want also to point out that on 29.12.2021, a capital increase of SR150 million was approved by the Extraordinary General Assembly, bearing in mind that this increase was not reflected in the annual financial statements ending on 31.12.2021. This increase in capital will be reflected in the preliminary financial statements for the financial period ending on 31-03-2022, bringing the company’s capital in the financial statements to SR291 million”, the company concluded.