The Commercial Court in Riyadh has ordered a former managing director and CEO of Mediterranean and Gulf Insurance and Reinsurance (MedGulf) to pay SAR152.7m ($41.1m) to the company in a law suit brought against him by the insurer.
In a stock exchange statement, MedGulf, the company said that it filed the law suit in November 2017 against the former CEO, demanding the recovery of funds that he had illegally obtained, and compensation for losses resulting from his actions that had been harmful to the company and its shareholders. The statement did not mention the former executive's name.
The court ruling, issued on 22 August, will not have a financial impact at the current time, MedGulf added.
The insurer said that 8 September has been set for the delivery of a copy of the notification of the verdict and that the defendant could object to the ruling within 30 days.
The insurer reported net losses of SAR204.5m for 2018 and SAR388m for 2017, following net gains of SAR67.6m for 2016 and net losses of SAR261.2m for 2015.