Reference is made to SAMA's announcement on its website dated 18/11/1436H (2/9/2015) on its conditional approval to the request received from Sanad Cooperative Insurance Company to increase its capital, SAMA would like to announce that it has approved the request after the company's fulfilment of SAMA's basic requirements to obtain such approval. However, the company should meet other authorities' requirements.

SAMA would also like to assert that its approval to capital increase requests of insurance companies does not constitute an endorsement of the feasibility of investment in their equities or subscription to their rights offerings. Rather, it only means that the necessary requirements to obtain SAMA's approval have been met. In addition, SAMA calls on all shareholders in such companies to study and analyze the prospectuses issued by these companies and approved by Capital Market Authority in order to make the appropriate decision on subscription.