Logo of Al Sagr Cooperative Insurance Co.
Al Sagr Cooperative Insurance Co. announced today, Dec. 10, receiving the approval of the Insurance Authority (IA) on increasing its capital from SAR 140 million to SAR 300 million through a rights issue, according to a statement to Tadawul.
The letter also included the authority’s approval to amend the capital article in the company’s bylaws in accordance with the new capital. The authority’s approval is valid for a period of one year from the date of the letter to complete the capital hike.
The company also noted that it is difficult to determine the expected completion date for this event, saying that there are no associated costs. Al Sagr said the related financial impact, if any, will be announced later, adding that it will have to fulfill all the requirements of other relevant official authorities.
The company’s board recommended, on Sept. 13, raising capital to SAR 300 million through a SAR 160 million rights offering. This will help Al Sagr comply with the minimum capital requirements for insurance companies, as well as support future plans and solvency margin, according to Argaam’s data.
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