The board of Dubai’s Islamic Arab Insurance (Salama) has recommended a capital reduction of AED398 million ($108 million) to write off accumulated losses.

The share capital after reduction will be AED 790 million, down from AED 1.21 billion, the company said in a statement to the Dubai Financial Market on Monday.

The recommendation will be presented at the company’s upcoming general assembly meeting following approval from the Securities & Commodities Authority (SCA) and the Central Bank of the UAE (CBUAE).

The company, which has yet to publish its second quarter 2022 financial results, reported a profit of AED15 million with total assets of AED4.64 billion in the first quarter, with accumulated losses at AED 362 million as of March 31, 2022.

(Writing by Imogen Lillywhite; editing by Cleofe Maceda)