Logo of Gulf General Cooperative Insurance Co.
Gulf General Cooperative Insurance Co.’s board of directors confirmed, on July 3, that it is actively working to implement corrective measures to address accumulated losses, which have reached 54%, while also considering all other potential options, according to a statement to
Tadawul.
The Saudi insurer’s board of directors took several decisions in this regard as follows:
Reaffirming its recommendation to proceed with the corrective action plans, while intensifying efforts to improve pricing and streamline costs.
Considering all other potential options, including, but not limited to, increasing the company’s capital, either through a rights issue to existing shareholders or by issuing new shares with the suspension of pre-emptive rights for strategic investors or current shareholders.
Continuing to evaluate all possible capital enhancement plans to safeguard and grow shareholder interests.
The board is committed to inviting shareholders for an extraordinary general meeting (EGM) within the regulatory deadline to review the company’s going concern plans. Any future developments will be disclosed in due course.
Earlier in May, the company’s accumulated losses reached 54.04% of its capital as of March 31, 2025, on a rise in insurance service expenses, a decline in investment income, and higher operating costs, according to Argaam data.
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