Reference is made to SAMA's announcement on 29/11/2016 about the rejection of the application submitted by Malath Insurance & Re-insurance Company to  increase its capital due to its failure to meet the necessary requirements, SAMA would like to announce that it has received a new capital increase application from the company, and it has identified a list of requirements to be met by the company in order for the request to be approved, including submitting an updated five-year business plan. Upon reviewing the updated business plan, SAMA has decided to approve the application and the company should meet the requirements of other official entities.

SAMA would also like to stress that its approval of capital increase applications submitted by insurance companies should never be construed as a recommendation for investment in or subscription to rights issues of such companies. Rather, SAMA's approvals mean that the requirements for the approvals have been met, and these companies' boards of directors and senior management are responsible for implementing the business plan.

SAMA also urges all shareholders to fully review and analyze the capital increase prospectuses issued by the companies and approved by Capital Market Authority to make an appropriate decision on subscription to rights issues.