RIYADH: Salama Cooperative Insurance Co. has swung to loss during the first half of 2022, after incurring claims from insurance operations leading to 993 percent higher losses.
The insurer suffered a net loss before Zakat of SR67 million ($18 million), after making a profit of SR144 million in the prior-year period, a bourse filing showed.
It cited a rise in net claims incurred by 50 percent and operating expenses by 53 percent, as well as a decline in profit of shareholder investments by 49 percent.
Most recently, Salama’s board proposed raising capital from SR100 million to SR300 million, after its shareholders approved a 60 percent capital cut.
To offset accumulated losses, the Saudi-listed firm will first reduce its capital from SR250 million to SR100 million by canceling 15 million shares.
