Malath Cooperative Insurance and Reinsurance Co. has been asked by the Saudi Arabian Monetary Authority (SAMA) to resolve its financial issues according to Article 150 of the companies’ law by March 5, 2017, the company said in a statement to Tadawul.
The insurer’s accumulated losses accounted for more than 50 percent of capital as of 2016-end.
The insurer said as a step towards resolving the issues, it has submitted an application to the Capital Market Authority (CMA) reduce capital.
In October, the company’s board of directors recommended a 60 percent capital cut to SAR 120 million from SAR 300 million (1.8 shares for each 3 outstanding shares).
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