https://arab.news/zyqfu
- Q1 net loss fell to SR39.9 million from SR58.4 million a year earlier
- Accumulated net loss has exceeded 35 percent of capital
RIYADH: Al Sagr Cooperative Insurance Co. posted a narrower first-quarter loss as it worked to turn around its loss-making medical portfolio.
Net losses fell to SR39.9 million ($10.6 million) from SR58.4 million in the first quarter of 2020, but were higher than the SR30.3 million loss reported for the final quarter of last year, Al Sagr said in a filing to the Saudi stock exchange.
Gross written premiums dropped 29 percent from a year earlier to SR68.8 million and by 10.5 percent from the prior quarter.
“The main reason for reaching this level of accumulated losses since 2019 is the deterioration of performance and management of the health insurance portfolio which has resulted in substantial increase in the medical portfolio’s net claims and other benefits incurred,” Al Sagr said in the filing. “Hence, the company will be subject to Capital Market Authority’s (CMA) regulations regarding listed companies with accumulated losses exceeding 35 percent of capital or more.”
The company started a comprehensive review of its medical portfolio in the third quarter of 2020 and has already begun to implement its turnaround plan, it said, predicting an improved performance for the company toward the end of this year.