Malath advised to increase technical reserves

Malath Cooperative Insurance Co. has been advised by an actuarial expert to increase its technical reserves to meet potential claims, the insurer said in a statement to Tadawul.

Adopting the recommendation is expected to negatively impact the firm’s financial results for the fiscal year 2017, it added.

Malath will review the amount of reserves required and the financial impact, and include the details in its 2017 results.

The impact of additional technical reserves will be limited to the income statement of the year’s insurance operations, and will not affect the company’s financial position or cash flows, the statement added.