Gulf General gets SAMA's nod on 40% capital cut, appoints financial advisor

Logo of Gulf General Cooperative Insurance Company

Gulf General Cooperative Insurance Co. received, on Nov. 22, the approval of the Saudi Central Bank (SAMA) on its request to reduce capital by SAR 200 million, or 40%, to SAR 300 million, according to a Tadawul filing.  

There is no financial impact on the company to date, Gulf General said, adding that the move is pending the approval of the competent authorities and the extraordinary general meeting (EGM).  

Gulf General remains committed to fulfilling all requirements set by official authorities and any future updates on this matter will be duly communicated.  

In a separate statement, the insurer announced the appointment of Yaqeen Capital as the financial advisor for the capital cut process aimed at offsetting accumulated losses.  

The company will provide further details upon submitting the capital reduction file to the Capital Market Authority (CMA), with subsequent developments to be disclosed in due course.  

Earlier this month, the insurer's board of directors recommended a 40% capital reduction from SAR 500 million to SAR 300 million by writing off 20 million shares to offset the accumulated losses, according to Argaam’s data.