UCA decides to file for financial restructuring

UCA said the move aims to protect the rights of shareholders and creditors

United Cooperative Assurance Co. (UCA) announced that one of its creditors has petitioned the Commercial Court in Riyadh to initiate liquidation proceedings against the company.

The commencement of the proceedings remains subject to the decision of the competent court in accordance with the Bankruptcy Law and its Implementing Regulations.

In a statement to Tadawul, the company added that it will take the necessary measures regarding the request in a manner that contributes to reaching an agreement with creditors and restructuring the company’s business to ensure continuity of operations.

In a separate statement to Tadawul, the company announced that the board of directors issued a written resolution today, Sept. 10, to file a request with the competent Commercial Court to initiate financial reorganization proceedings.

The company said the board also resolved to authorize the Chairman, Acting CEO, and executive management to take the necessary statutory measures to implement the resolution in accordance with the regulations of the competent authorities.

The company said the move aims to protect the rights of shareholders and creditors and ensure business continuity.

According to data available on Argaam, the IA has suspended the company from issuing or renewing insurance policies for all motor insurance products, including comprehensive motor insurance policies, effective Feb. 19, for failing to take the necessary due care to rectify its position, which affected the services provided to policyholders and beneficiaries.

The company expected the decision to have a negative impact on its financial results in 2026. As of today, the company has not announced the lifting of that regulatory suspension.

The company’s accumulated losses reached SAR 459.57 million, equivalent to 115% of its capital, as of Q2 2026.