Saudi Arabia: Insurer aims to increase capital through rights issue

Source: Middle East Insurance Review | Feb 2021

Walaa Cooperative Insurance Company’s directors have recommended an increase in the company’s capital through a rights issue.

The company said in a statement to the Saudi Stock Exchange that the total amount to be raised is SAR755m ($201m).

The reasons for the increase are to support the expansion of the company’s activities and to enhance the solvency margin.

The capital increase is subject to the approval of the Central Bank of Saudi Arabia, the Capital Market Authority, and other relevant regulatory bodies, in addition to the approval of shareholders.

The bid to raise the company’s capital is made almost a year after the merger between Saudi Arabia-based MetLife AIG ANB Cooperative Insurance and Walaa became effective. The merger took effect after the creditors’ objection period lapsed on 27 February 2020 without objections. MetLife AIG ANB’s assets and liabilities were transferred to Walaa.

Walaa’s authorised and paid-up capital, after the merger with MetLife AIG Arabia amounted to about SAR646.4m. M

SAR1 = $0.27

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