Chubb Arabia approves dividend freeze for FY16

Chubb Arabia Cooperative Insurance Co.’s general assembly approved on Wednesday the board’s recommendation to withhold dividend for fiscal year 2016, the insurer said in a statement on Tadawul.

The decision aims at supporting the company’s future growth and improving solvency margin.

In a separate statement on the Saudi bourse, Chubb Arabia said that its capital hike request is still under study by authorities.

The company will disclose any updates on the matter as they occur.

In April, the insurer’s board of directors had recommended doubling capital to SAR 200 million via the issue of 1:1 bonus shares. Accordingly, the number of shares would increase from 10 million to 20 million.