Amana Insurance gets initial approval for capital hike

Amana Cooperative Insurance Co. obtained on Wednesday initial approval from the Saudi Arabian Monetary Authority (SAMA) for its proposed SAR 100 million capital hike, the insurer said in a bourse statement.

SAMA’s final approval is subject to an unconditional and irrevocable undertaking by a licensed brokerage firm to cover the entire rights issue of the capital hike.

In September last year, Amana Insurance’s board recommended a SAR 100 million rights issue, in order to boost solvency margin and support future activities.

The insurer last month submitted its capital increase request to the SAMA for approval.