Saudi Arabia: AXA Insurance allocates $33 mln to boost investments
Source: Middle East Insurance Review | Jul 2017
AXA Cooperative Insurance has allocated SAR125 million (US$33.3 million) to boost its investments. The sum is from the total proceeds of SAR250 million raised in a rights issue, the insurer said in a statement to Tadawul.
A total of SAR125 million from the allocation was placed in various investments, while SAR25 million was put up as a statutory deposit in line with regulations governing rights issues, reported Argaam, citing the statement.
The insurance firm also paid SAR50 million to buy an insurance portfolio.
The direct and indirect costs of the rights issue amounted to SAR7.2 million, compared to the original estimate of SAR10 million.
AXA spent the remaining SAR40 million on the company’s headquarters, and to develop other infrastructure, the statement said. Any additional costs will be financed from the company’s reserves, it added.
The rights issue, carried out in 2015, raised the company’s capital from SAR200 million to SAR450 million. M
SAR1 = US$0.27