SAMA Decides on the Arabia Insurance Cooperative Company’s Capital Increase Request

Reference is made to its announcement dated 23/6/1435H on requests received from a number of insurance companies to increase their capitals, and whereas it has rejected the Arabia Insurance Cooperative Company’s request, SAMA would like to announce that the Arabia Insurance Cooperative Company has submitted a new request. After reviewing its submitted capital increase request and work plan, SAMA decided to approve the request. However, the Arabia Insurance Cooperative Company should fulfill other competent authorities’ requirements as well as the approval’s subsequent requirements within the next three months. In case the company fails to satisfy such requirements, SAMA will withdraw its approval.

SAMA would also like to assert that its approval of insurance companies' requests to increase their capitals 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 and the implementation of the work plans is the responsibility of the boards of directors and senior managements of these companies. SAMA calls on all shareholders in such companies to study and analyze the prospectuses issued by them.