Saudi Arabia: Sanad applies for KSA's first voluntary liquidation

Source: Middle East Insurance Review | Apr 2017

In the first of its kind move in the Saudi insurance sector, Sanad Cooperative Insurance (Sanad) has applied for voluntary liquidation after losing more than 50% of its capital.

Sanad disclosed this in a statement on the Saudi stock exchange website (Tadawul) on 9 March, in which it said that it had informed the Saudi Arabian Monetary Authority (SAMA) of its decision on voluntary liquidation.

Sanad will call for an extraordinary general meeting to convene and vote on this proposed move.

The company’s financial statements on Tadawul show that accumulated losses amounted to around SAR166 million (US$44.3 million) by the end of 2015, accounting for around 83% of the company’s SAR200-million capital.

At the end of 2016, the company suffered pre-zakat net losses of SAR8.3 million. The insurer ended January 2017 with a pre-zakat net loss of SAR1.4 million even though it had not written any business during that month.

SAR1 = US$0.27

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