Malath Insurance submits capital hike request to CMA

Malath Cooperative Insurance Co. has submitted a request to increase capital through a rights issue to the Saudi Capital Market Authority (CMA), the company said in a statement to Tadawul on Thursday.

The company’s board of directors recommended in December a SAR 380 million capital hike through a rights issue, for which it received approval from the Saudi Arabian Monetary Authority (SAMA) the following month.

In a separate statement, Malath Insurance said that its accumulated losses have reached SAR 25.7 million, or 21.4 percent of capital, as of March 31, 2017.

The accumulated losses were due to an increase in net claims for 2016 including higher provisions.

The insurer will be subject to the CMA’s new rules governing companies with accumulated losses reaching 20-35 percent of capital, the statement said.