MEDGULF to be in solid position by year end, eyes 15% market share in 5 years: CEO

Logo of MEDGULF

Mediterranean and Gulf Insurance and Reinsurance Co.'s (MEDGULF) Q3 2021 financial results were surprising, Chief Executive Officer (CEO) Goetz Kuras told Al-Arabiya.net, adding that the insurer’s position will be solid by the end of the year, in order to start the next year without any surprises.

“We’ll end this year with slightly lower revenue compared to the last year. Amid the company’s restructuring process, profit will continue fluctuating, but certainty on profit will be clear upon the completion of the restructuring process,” Kuras said.

MEDGULF aims to raise its market share to 15% in the next five years from current 7%. The higher market share will be attained in line with the company’s restructuring process and injected investments to enhance its market position.

The company plans to invest over SAR 60 million next year, to support its infrastructure and attract new capacities, Kuras added, noting that subscription process to the right issue is good.

MEDGULF launched its rights issue today, Nov. 22, to raise its capital to SAR 1.050 billion from SAR 700 million and offset accumulated losses.

It sustained net losses of SAR 11.8 million in the nine-month period ended Sept. 30, 2021, against net profits of SAR 30.8 million a year earlier. The third-quarter net losses reached SAR 25.6 million, Argaam earlier reported.