Weqaya attributes accumulated losses to provisions, claims

The accumulated losses of Weqaya Takaful Insurance and Reinsurance Co. stood at SAR 298.14 million, or 149 percent of its capital, the company said in a statement to Tadawul on Wednesday.

The insurer incurred these losses due to the technical provisions allocated at the end of 2013, and liquidation of its investments in 2014 upon request of the Saudi Arabian Monetary Authority (SAMA), the kingdom’s central bank and insurance sector regulator.

The company has been also suspended from issuing or renewing insurance policies since 27 August, 2014 by SAMA, and faced delays in obtaining regulatory approvals for increasing capital until May 17, 2016, though its request was submitted in April 2014.

Meanwhile, there were higher claims submitted in fiscal years 2014 and 2015, Weqaya added.

Weqaya will be subject to the Saudi Capital Market Authority’s (CMA) policy that governs listed companies with accumulated losses of 20 percent minimum, starting from April 22.