Gulf Union to resubmit request for capital hike

Gulf Union Cooperative Insurance Co. (Gulf Union) said that it will soon resubmit a request for its capital raise to the Saudi Arabian Monetary Agency (SAMA) after it reached an agreement with one of its strategic partners following a financial dispute in the second quarter.

This time around, the insurer will include the amount required to cover the minimum margin solvency ratio, it said on Thursday in a statement to the Saudi bourse.

It also pledged to submit a five-year business plan in order to meet requirements set by SAMA, the kingdom’s central bank.

Argaam reported in April that the central bank denied the company’s plan for a capital raise after it failed to meet regulatory requirements.