Riyadh – Mubasher: Amana Cooperative Insurance received a letter from Saudi Arabian Monetary Agency (SAMA) obliging the company to make a plan to meet the solvency margin requirements no later than 29 December, 2016.
The company’s board shall hold an emergency meeting to discuss the reasons behind the financial deterioration, as per SAMA request, according to a bourse filing on Wednesday.
In case the company did not fulfil the requirements, SAMA will take all the legal actions against the company to protect clients’ rights, the statement said.
SAMA’s decision came after the agency gave the company an interval to meet solvency margin requirements but the financial statements by 30 September, 2016 revealed a decrease in the margin below the required 75%, adding to suffering accumulated losses of 65% of capital.
Saudi Arabian Monetary Agency (SAMA) approved on 27 October the capital reduction of Amana from SAR 320 million to SAR 140 million.
