Gulf Union Alahlia says accumulated losses down to 12.14% of capital after using premium share balance of SAR 89.5 mln

Logo of Gulf Union Alahlia Cooperative Insurance Co.

Gulf Union Alahlia Cooperative Insurance Co. said that its accumulated losses fell to 12.14% of capital after using the entire share premium balance of SAR 89.5 million to offset accumulated losses.

Accumulated losses reached SAR 117.3 million before reduction, representing 51.13% of capital as of March 31, 2021. Losses were cut to SAR 27.9 million after reduction, the company explained in a bourse filing.

The step followed the general assembly’s approval, on June 29, to use the entire balance of the share premium, amounting to SAR 89.5 million, to reduce part of the accumulated losses.

The insurer said that using the entire balance of the share premium will not have an impact on its cash position. In addition, there will be no impact on the net shareholders' equity and the company’s liabilities.

Accordingly, this announcement excludes the company from the scope of application of Article 150 due to the decrease in losses to less than 50% of the capital.