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:
- Sanad’s worsening financial position with accumulated losses reaching 74.77 percent of capital, by the end of the first quarter of 2014.
- The company’s failure to meet capital adequacy ratio.
- Failure to apply the pricing structure set by the actuary.
- Board’s failure to form a review committee.
- The risk manager position remaining vacant.
- Retaining vacant senior management positions.
- Failure to inform SAMA of chairman’s resignation.
- Overlapping responsibilities between the board and executive management.
- The rising volume of debtor accounts and poor collection of premiums.
SAMA prompted the company to pursue the following procedures:
- Submit detailed plan for restructuring the company and improving capital adequacy ratios, by no later than Sunday 16/9/1435 Hijri.
- 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.
- Submit certified documents from competent authorities by no later than Sunday 16/9/1435 Hijri.
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