Dubai-listed takaful insurer Arabian Scandinavian Insurance Company (Ascana) has reduced its accumulated losses to AED 48.4 million ($13.17 million), representing 31.4% of the paid-up capital.

The decline in accumulated losses have been due to improved financial performance during the first quarter of the year, which recorded a net profit of AED 3.1 million, according to a disclosure on the Dubai Financial Market (DFM).

“During 1Q 2024, accumulated losses [were] reduced by AED 3.06 million due to a profitable quarter for the current reporting year,” the company, which has rebranded as Sukoon Takaful, said.

“The initial move to accumulated loss position during [the] year 2023 was predominantly due to adverse experience in motor and medical businesses prior to [the second half of] 2023.”

The company said it had identified inefficiencies and implemented strategic measures to address the losses.

In May last year, the company was acquired by Sukoon Insurance Company with majority shareholding of 93.04%.

(Writing by Cleofe Maceda; editing by Seban Scaria)