Riyadh court accepts UCA liquidation application

Logo of United Cooperative Assurance Co. (UCA)

United Cooperative Assurance Co. (UCA) said the Commercial Court in Riyadh has accepted an application filed by one of the company’s creditors to commence liquidation proceedings.

The application has been registered with the court and will be considered in accordance with the applicable laws, regulations, and statutory procedures, UCA said in a Tadawul filing.

The company affirmed that the court’s acceptance of the application does not constitute a final judgment or decision to liquidate UCA, nor does it mean that a ruling has been issued to commence liquidation proceedings.

Instead, it marks the start of the judicial review of the creditor’s application under the Bankruptcy Law, its executive regulations, and relevant statutory procedures.

UCA said the application will go through the established judicial and statutory stages and procedures, including allowing relevant parties to exercise their legal rights, pending the competent court’s decision on whether to commence liquidation proceedings or take any other action permitted under the law.

The company said it will continue to take the necessary regulatory and legal measures to protect its interests, shareholders, and stakeholders. It added that it will disclose any material developments in line with regulatory requirements.

UCA said on Sept. 10 that one of its creditors had filed an application with the Riyadh Commercial Court to initiate liquidation proceedings against the company, according to Argaam data.

The Capital Market Authority (CMA) decided to suspend trading in UCA shares starting today, Sept. 13. The suspension is pending the CMA’s decision on the liquidation application, following the Commercial Court’s decision to accept or reject the commencement of liquidation proceedings against the company.

The Insurance Authority earlier suspended UCA from issuing or renewing insurance policies for all motor insurance products, including comprehensive motor insurance, effective Feb. 19, after the company failed to take the necessary measures to rectify its position, affecting services provided to policyholders and beneficiaries.

UCA’s accumulated losses reached SAR 459.57 million, equivalent to 115% of its capital, as of the second quarter of 2026.