Salama receives SAMA letter on decline of solvency margin

Logo of Salama Cooperative Insurance

Salama Cooperative Insurance Co. received, on April 20, a letter from the Saudi Central Bank (SAMA) regarding the decline of actual solvency margin, compared to the required level, as per the requirements of Article 66 of the Executive Regulations of the Cooperative Insurance Companies Control Law.

In a statement to Tadawul, Salama said SAMA’s letter directed the submission of a corrective plan to the central bank explaining the steps the insurer will take to improve its financial solvency for approval within 15 business days from the date of the letter.

Accordingly, Salama vows to submit the appropriate procedures to SAMA in order to raise the solvency margin to the required level.

The insurer will make any developments in this regard in due course, it noted.