SAMA directs Salama to meet solvency margin requirements

Salama Cooperative Insurance Co. received on Nov. 20 a letter from the Saudi Arabian Monetary Authority (SAMA) informing the decline of actual solvency margins below the required level, the company said in a statement to Tadawul.

The insurer was directed by SAMA to set out a corrective plan and liquidate some assets to meet the solvency margin requirements.

Salama’s statutory deposit should be raised to 15% of capital and a relevant report shall be submitted to SAMA within one month in this regard, the statement said.

Salama is also required to enhance collections to improve its solvency margin level.

The company will announce updates later on, the statement added.