BANJA LUKA (Bosnia and Herzegovina), August 30 (SeeNews) – Bosnian insurance company Krajina Osiguranje said on Tuesday it turned to a net loss of 7.8 million marka ($4.5 million/4 million euro) in the first half of 2016 from a slim profit of 2,400 marka a year earlier.
Operating income dropped by an annual 13.1% to 5.2 million marka in January-June while operating costs jumped to 12.4 million marka from 5.8 million marka, its financial statement filed with the Banja Luka Stock Exchange indicated.
In July, the Insurance Agency of Bosnia’s Serb Republic said it has instated an interim administrator at Krajina Osiguranje for a period of three months.
According to local media, the agency has suspended all functions of the insurer's administration, supervisory board and audit committee because of a series of illegal acts committed by the new owners - Indian nationals Naveen Aggarwal and Gupta Neete, who earlier this year acquired a 50.5% stake in the company.
The Serb Republic's state share fund holds a 34.9% stake in the insurer.
Krajina Osiguranje is based in Banja Luka, in the Serb Republic, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Muslim-Croat Federation.
(1 euro=1.95583 marka)