MEDGULF's accumulated losses reach 44.08% of capital as of 2022

Logo of The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF)

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) announced that its accumulated losses reached SAR 462.82 million, standing at 44.08% of its SAR 1.05 billion paid-in capital as of Dec. 31, 2022.

In a statement to Tadawul, MEDGULF attributed these losses to an increase in net claims incurred during 2022 on its major lines of business, health and motor insurance. It also cited high claims on a lower earned premium basis, and market pricing conditions.

These factors together led to a high loss ratio which, jointly with a high-cost base affected the 2022 net results, as disclosed in the annual financial statements, the insurance services provider added.

MEDGULF will take all the necessary underwriting, cost-related and capital-driven measures in order to restore its financial position.

Procedures for listed companies with accumulated losses of 20% or more of capital will apply, the statement added.