Weqaya Insurance amends capital raise proposal to SAR 600 mln

Weqaya Takaful Insurance and Reinsurance Company’s board of directors amended its capital raise recommendation from SAR 400 million to SAR 600 million.

The increase was necessary to meet the solvency margin required by the Saudi Arabian Monetary Agency (SAMA), the company said on Sunday.

The capital raise is still conditional upon obtaining regulatory approvals.

Weqaya’s shares have been halted since its accumulated losses exceeded 75 percent of its capital, according to data compiled by Argaam.

Saudi insurers such as Wafa, AICC, United Assurance, and Alinma Tokio Marine have recently raised their capitals through rights issues in an attempt to offset accumulated losses.