Riyadh - Mubasher: Amana Cooperative Insurance said that it started to resolve its issues as per Article 150 of the Companies Law, through a capital decrease.
On Monday, Amana received a letter from the Saudi Arabian Monetary Agency (SAMA) directing it to resolve its issues in a period not to exceed 5 March, according to a bourse filing on Tuesday.
In case the insurer failed to resolve its situation, SAMA will take the regulatory procedures stated in the monitoring system of the cooperative insurance firms.
The company’s board recommended reducing the capital by SAR 180 million to reach SAR 140 million and it received the approval of SAMA and the Capital Market Authority (CMA).
Aman’s accumulated losses reached SAR 188.72 million by the end of December, representing 58.97% of the total capital which totals SAR 320 million.
