Wafa Insurance shares hit record low since debut

Shares of Saudi Indian Company for Cooperative Insurance (Wafa Insurance) have dropped by more than 6 percent to hit their lowest level since debut at SAR 10.10 during today’s session.

This came after the Capital Market Authority (CMA) said on Monday that Wafa Insurance will be terminated on Sept.11, under the Saudi Companies Law if it fails to hold an extraordinary general assembly meeting within 45 days from the date its board of directors were informed of losses.

In a separate statement, the Saudi Arabian Monetary Authority (SAMA) said Wafa is not allowed to cut capital, as its losses account for the minimum limit of capital required for carrying out insurance business.