Al Sagr gets IA nod to use SAR 8.9M reserve against losses

Al Sagr Cooperative Insurance Co. received Insurance Authority approval on July 15 to apply its entire statutory reserve of SAR 8.9 million toward reducing accumulated losses. The regulator's green light lets the company draw down the reserve, which had been set aside under Saudi insurance regulations, to shrink a deficit on its balance sheet. Al Sagr did not disclose the current size of its accumulated losses or how much of the reserve it plans to use immediately. The company said in a filing on the Saudi Exchange that the IA's decision is effective from the date of the approval. No further details on the timeline or any remaining shortfall were provided.