Riyadh – Mubasher: Gulf Union Cooperative Insurance received a letter from Saudi Arabian Monetary Agency (SAMA) requiring to make a plan to meet the solvency margin requirements no later than 5 January, 2017.
The agency also required that the company shall increase its regulatory deposit to 15% of the paid up capital from10% 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.
In October, SAMA approved reducing the company's capital from SAR 90 million to the sum by which the company can offset its accumulated losses completely.
The company's board proposed reducing capital by nearly 40.9% (SAR 90 million) to SAR 130 million from SAR 220 million.
