Muscat - Dhofar Insurance Co announced that it received a letter from the Capital Market Authority (CMA) instructing the company to suspend some activities effective from January 2018 unless the solvency margin deficit is resolved.
The company’s board of directors on Monday called for an emergency meeting of major shareholders to discuss the financial position of Dhofar Insurance.
‘The major shareholders expressed their full and immediate commitment to support the company by injecting necessary funds to restructure the company’s capital and to resolve the solvency margin deficit in compliance with the CMA letter’, Dhofar Insurance said in a disclosure to the Muscat Securities Market on Tuesday.
Dhofar Insurance’s board has instructed the company to complete the formalities for convening a second extraordinary general meeting (EGM) to discuss and approve the proposed financial restructuring. The EGM is expected to be held in the second week of January 2018, the company said.
The loss-making company reported a 21 per cent decline in gross written premium for the nine months ended September 30, 2017 to RO36.03mn compared with RO45.63mn in the same period of 2016. Dhofar Insurance reported a net loss of RO794,635 in the first nine months of 2017 compared with a net loss of RO6.47mn in the same period of 2016.
