Riyadh – Mubasher: Al Etihad Cooperative Insurance Co’s shareholders approved a 45.4% capital increase during an extraordinary general assembly meeting held on 19 June.
The company will raise its capital to SAR 400 million instead of SAR 275 million and the shares will be increased to 40 million from 27.5 million, according to a statement to the Saudi Stock Exchange (Tadawul) on Thursday.
The move aims at supporting the firm’s capital base, improving its ability to afford a greater share of premiums and planning new insurance products while maintaining an adequate solvency margin to withstand expansion plans in the near future.
The Saudi-based insurer noted that the capital increase will be financed via capitalising SAR 95.7 million from retained earnings account and SAR 29.3 million from the statutory reserve.
