Abu Dhabi-listed Methaq Takaful Insurance Company reported on Friday that its accumulated losses have reached more than AED73.8 million ($20 million), largely due to fluctuations in financial markets and fair value of real estate.

The losses as of the second quarter of the year, representing nearly half (49.2%) of the capital, have also been partly due to extreme competition in the market and high operating costs, the Islamic insurer said in a statement posted on the Abu Dhabi Securities Exchange (ADX).

"The accumulated losses have been continued since 2011, mainly due to the loss of the fair value of the financial and real estate investments amounting to 47 million dirhams due to the fluctuations...," the statement said.

The company said it has started working to cut down on operating costs.

It also noted that the company's directors consider the losses to be temporary, adding that Methaq Takaful is expected to generate profits from its "future takaful operations".

(Writing by Cleofe Maceda; editing by Mily Chakrabarty)