Wafa Insurance invests SAR 90.6 mln to boost solvency margin

Saudi Indian Co. for Cooperative Insurance (Wafa Insurance) used the remaining SAR 90.6 million of its rights issue proceeds to boost its solvency margin, the insurer said in a statement to Tadawul.

The amount was invested as Murabaha Term Deposit with a local bank.

Total proceeds from the rights issue that took place in April 2015 amounted to SAR 105 million.

The rights issue expenses totaled SAR 3.9 million, while total net proceeds reached SAR 101 million.

A difference of SAR 1.1 million was observed in capital increase costs, which were originally estimated at SAR 5 million as stated in the prospectus, the company added.

Wafa invested SAR 10.5 million in the statutory deposit, in line with the capital increase requirements.