Sanad unveils details of SAMA’s ‘final notice’

Sanad Cooperative Insurance received yesterday a ‘final notice’ from Saudi Arabian Monetary Agency (SAMA) detailing the reasons of SAMA’s assignment of external auditor to review Sanad’s position:

1. Sanad’s worsening financial position with accumulated losses reaching 74.77 percent of capital, by the end of the first quarter of 2014.
2. The company’s failure to meet capital adequacy ratio.
3. Failure to apply the pricing structure set by the actuary.
4. Board’s failure to form a review committee.
5. The risk manager position remaining vacant.
6. Retaining vacant senior management positions.
7. Failure to inform SAMA of chairman’s resignation.
8. Overlapping responsibilities between the board and executive management.
9. The rising volume of debtor accounts and poor collection of premiums.

SAMA prompted the company to pursue the following procedures:

1. Submit detailed plan for restructuring the company and improving capital adequacy ratios, by no later than Sunday 16/9/1435 Hijri.
2. Submit a specific plan for filling vacant positions on the board, its committees and executive management, by no later than Sunday 16/9/1435 Hijri.
3. Submit certified documents from competent authorities by no later than Sunday 16/9/1435 Hijri.