Amana Insurance plans capital cut to boost solvency margin
Amana Cooperative Insurance Co.’s shareholders approved on Sunday a 56.25 percent capital reduction to SAR 140 million from SAR 320 million by writing off 56.25 percent of outstanding shares, or 1.125 shares for every two shares, the company said in a statement toTadawul.
The stock fluctuation limit on Monday will be based on a share price of SAR 20.85.
In September, the insurer’s board of directors recommended a capital cut,Argaam earlier reported.
After the reduction, the company will increase capital by SAR 100 million through a rights issue to boost its solvency margin and support future activities.