ACIG directed by IA to meet minimum paid-up capital requirement

Logo of Allied Cooperative Insurance Group (ACIG) 

Allied Cooperative Insurance Group (ACIG) was directed by the Insurance Authority (IA) on July 15 to submit a corrective plan within 10 business days, outlining the steps it will take to comply with the minimum paid-up capital requirement for insurance companies.

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In a statement to Tadawul, the company noted that the minimum paid-up capital for insurance companies must not be less than SAR 300 million. This follows the announcement of the results of the extraordinary general meeting (EGM) held on June 22, in which shareholders voted against the proposed capital increase.

The insurer added that it will announce any future developments in due course.

According to Argaam data, ACIG shareholders rejected the board's recommendation to increase capital via a rights issue worth SAR 209 million during an EGM on June 22.

The capital hike aimed to support the company’s plans, enhance solvency margin, and boost investment income.

ACIG’s accumulated losses in Q1 2025 amounted to SAR 78.60 million, representing 27.01% of its capital.