​Reference is made to Saudi Enaya Cooperative Insurance Company’s (Enaya) announcements posted on the Saudi Stock Exchange website (TADAWUL), the first one of which was issued on 22/08/1439H as Enaya disclosed that its accumulated losses had exceeded 50% of its paid-up capital, SAR 200 million, reaching 74.5%. The second announcement was made on 29/08/1439H as Enaya disclosed that it had received SAMA’s approval on the reduction of its capital. Following this capital reduction, Enaya had the minimum level of capital required for carrying out insurance activities, as stipulated in Article 3 of the Cooperative Insurance Companies Control Law. Thus, its accumulated losses constituted 49% of the capital.

SAMA plays a regulatory and supervisory role over the insurance sector and performs responsibilities to protect the rights of insureds and beneficiaries of insurance. Therefore, given that Enaya’s financial data included in its financial reports for the first quarter of 2018 have shown a significant decrease in the company’s actual solvency margin, which indicates that it failed to meet the solvency margin required, and in accordance with Article 19 of the Cooperative Insurance Companies Control Law issued by Royal Decree No. M/32 dated 02/06/1424H and Article 68 of the Implementing Regulations of the Cooperative Insurance Companies Control Law issued by Ministerial Resolution No. 1/596 dated 01/03/1425H, SAMA would like to announce that it has decided to suspend Enaya from issuing or renewing any insurance policy as of Sunday 12/09/1439H (27/05/2018).

​SAMA asserts that the suspension decision does not relieve Enaya of its obligations under its effective insurance policies or claims arising from such policies. SAMA also affirms that it will not lift the suspension unless it is proved that the company has successfully amended its margin of solvency according to the requirements provided for in the Implementing Regulations of the Cooperative Insurance Companies Control Law.

Furthermore, SAMA calls upon all in​sureds and beneficiaries to not compromise their rights and to contact their company in this regard. In the event that the company does not cooperate, insureds and beneficiaries should not hesitate to file a complaint with the Consumer Protection Department through SAMAcares.sa or by contacting Toll-Free Number 8001256666.