MEDGULF enters final settlement with former CEO for SAR 59 mln; to collect remaining amount from reinsurers

Logo of MEDGULF

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) entered into a final settlement agreement with the previous Managing Director (MD) and CEO regarding the lawsuit filed against him, with a total amount of SAR 59 million.

The company said in a bourse filing that this is in addition to assisting in collecting the outstanding amount from reinsurers.

The company will announce any material developments in due course.

According to data compiled by Argaam, in November 2017, MEDGULF submitted a request to file a claim against a former executive of the company, who also held the position of CEO and MD. The company requested a refund of unlawful money obtained by the executive and a compensation for losses resulting from his actions.

In August 2019, the commercial court in Riyadh ordered the former MD and CEO of MEDGULF to pay to the company an amount of SAR 152.7 million in the lawsuit raised against him.

In September 2020, the court of appeal in Riyadh canceled a previous ruling by the commercial court against the executive due to lack of jurisdiction.