United Insurance Company remains mired in uncertainty over its survival as an ongoing financial concern, despite trimming losses for the first quarter of the year.
The Ras Al Khaimah-based insurer yesterday announced a first-quarter loss of Dh7.1 million compared with a loss of Dh9.1m a year earlier, thanks to a Dh3.5m gain on the sale of some of its investments during the first three months of the year.
The gain only partially masked decreases in net insurance premium revenue and increasing underwriting losses.
United Insurance remains in dire financial straits, its accumulated losses deepening to Dh80.5m at the end of March, compared with Dh14.3m at the a year earlier.
The insurer has since September been in breach of UAE companies law that requires a company’s accumulated losses not to exceed 50 per cent or be less than its share capital.
In such circumstances, the company is required by law to hold an extraordinary general meeting to determine whether it should cease operations.
“The board of directors has commenced an assessment in relation to the capital requirement of the company, and after reviewing the options will convene an extraordinary general meeting after meeting the necessary legal and regulatory requirements,” the company said.
The insurer's stocks have not traded since April last year, and the shares remained unchanged yesterday on the Abu Dhabi Securities Exchange at Dh2 each.
jeverington@thenational.ae
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