Gulf Union cancels capital reduction due to economic instability

Gulf Union Cooperative Insurance Co. has decided to withdraw its capital reduction request submitted earlier to the Capital Market Authority (CMA), the insurer said in a statement Wednesday.

The company based its decision on a recommendation made by Aljazira Capital, its financial advisor, due to current market conditions.

The request may be submitted again later this year to the market regulator.

In January, Gulf Union submitted the request to cut its capital by SAR 90 million in an attempt to offset accumulated losses.