Al-Etihad OKs Hadeed’s request for insurance policy cancellation

Logo of Al-Etihad Cooperative Insurance Co. 

Al-Etihad Cooperative Insurance Co. announced that Saudi Iron and Steel Co. (Hadeed) requested the cancellation of its employee health insurance policy, effective Dec. 17.

The company approved the request and set the cancellation date as of today, Dec. 11, 2024, citing Hadeed’s non-compliance with the contract terms, ensuring the protection of its rights and shareholder interests, according to a statement on Tadawul.

Al-Etihad stated it is pursuing collection of unpaid premiums for the elapsed contract period as per the agreement and will take all necessary legal steps to secure the company’s and shareholders’ rights.

The sales impact is estimated at 5.5% of gross written premiums based on the 2023 financials, with no material effect expected on net insurance results.

In July, Al-Etihad received a mandate from Hadeed to provide cooperative health insurance for its employees, according to Argaam’s data.