Saudi Enaya shareholders to discuss accumulated losses by June 17

Saudi Enaya Cooperative Insurance Co.’s (Enaya) board of directors should convene an extraordinary general assembly meeting latest by May 27 to discuss the company’s accumulated losses, the insurer said in a bourse filing.

In case the meeting is not held by June 17, or shareholders failed to decide over the matter, the company would be liquidated by virtue of law.

Saudi Enaya recently said that accumulated losses exceeded 50 percent of capital based on unaudited financial results of Q1 2018.

The losses stand at about SAR 149 million, or 74.50 percent of the firm’s capital of SAR 200 million. The insurer attributed the losses to the increase in technical reserves as recommended by its actuary to meet the potential claims.