SAUDI ARABIA: MetLife AIG ANB Cooperative Insurance Company has announced in a bourse filing that based on the unaudited financial results of February 2018, the percentage of the accumulated losses amounted to SAR180.67 million (US$48.16 million) equivalent to 51.62% of the company’s capital of SAR350 million (US$93.29 million).
The accumulation in losses is attributed to high administrative and general expenses in addition to the unexpected loss in the fourth quarter of 2017 in relation to the medical line of business. Therefore, the company shall be subject to the procedures and instructions issued by the Capital Market Authority (CMA) and related to listed companies with accumulated losses reaching 20% or more of their share capital.
The board of directors has been authorized by the CMA to reduce the company’s capital by 48.57% to offset SAR170 million (US$45.31 million) of the accumulated losses. An extraordinary general assembly will be convened to continue with process of capital reduction.