Sipchem, CHUBB Arabia settle SAR 53mln claim over Hail plant fire

Logo of Sahara International Petrochemical Co. (Sipchem)

Sahara International Petrochemical Co. (Sipchem) and CHUBB Arabia Cooperative Insurance Co. reached, on June 27, a full and final settlement of SAR 53 million for the entire damage and losses caused by a fire incident at Hail factory of Sipchem’s subsidiary, Saudi Specialized Products Co. (Wahaj).

In a statement to Tadawul, Sipchem indicated that the final settlement will have a positive impact on its financials during Q2 2024. It does not expect that this incident will result in a negative financial impact on the results.

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In a separate statement, Chubb Arabia clarified that the losses resulting from this accident have been reinsured with the reinsurers in accordance with the rules, with the company’s maximum liability for this claim amounting only to SAR 2.8 million. The insurer also noted that a provision has already been set aside for the claim in 2023 and will not impact this year’s financials.

In August 2022, Sipchem announced that a fire broke out in a factory of its Hail-based subsidiary during the trial run period, Argaam earlier reported.

In the same month, CHUBB Arabia said it received a claim notification from Sipchem on the fire incident.