Shareholders of General Cooperative Insurance (GGI) have approved a recommendation by the board of directors for the insurer to continue its operations after its accumulated losses exceeded half of its SAR300m ($80m) paid-up capital.
GGI said that its accumulated losses reached SAR223.02m, representing 74% of its paid-up capital, as of 30 September 2025.
The approval was given at an extraordinary general assembly on 18 January 2026, the insurer said in a statement on the Saudi Stock Exchange (Tadawul).
Shareholders also approved delegating the board to address the accumulated losses as it had previously recommended.
In July 2025, the board resolved to:
(1) reaffirm its recommendation to continue with the implementation of corrective action plans and intensive efforts to improve pricing and optimise costs;
(2) consider all other potential measures, including but not limited to a capital increase (whether through a new rights issuance to existing shareholders or through a new share issuance with the suspension of pre-emptive rights to new strategic investors or existing shareholders).
Other measures included reducing general and administrative expenses and developing sales through digital channels to improve cost efficiency.
Capital reduction exercise
GGI undertook a capital reduction exercise in 2024 when the share capital of the company was slashed from SAR500m to SAR300m. The reduction of SAR200m was used to write off accumulated losses of the company. Last June, the board proposed another capital reduction exercise, which will involve writing off an amount of SAR162.1m from accumulated losses. The proposal was for the capital reduction to be effected through the cancellation of 16,211,800 shares, or by a value of 54.04% for each share.
Offer
In November 2025, GGI announced the execution of a non-binding offer (NBO) by BlueFive Investments Holding to subscribe to new cash shares in the insurer by way of a capital increase with the suspension of pre-emptive rights.
The NBO will terminate at the earlier of i) the time the definitive agreements are executed between the two parties; or ii) two months from 24 November 2025 (or such later date as extended by written agreement of both parties); or iii) the parties mutually deciding to conclude discussions in respect of the proposed transaction.