News Middle East15 Jul 2019

Saudi Arabia:Beleaguered Wafa Insurance submits financial restructuring plan

| 15 Jul 2019

Saudi Indian Cooperative Insurance (Wafa Insurance) has submitted its financial restructuring plan to the courts, the company announced in a bourse statement last week.

It is currently difficult to estimate the related financial impact, the statement added.

In February, the insurer said that a Saudi court overturned a previous decision to reject the company’s request for financial restructuring.

Last year, the Saudi Arabian Monetary Authority (SAMA) suspended Wafa Insurance from issuing or renewing any insurance policies as of 24 May 2018. This was after the regulator had issued a series of warnings to Wafa Insurance for failing to comply with solvency requirements. SAMA had also held a meeting with the chairman and the CEO of Wafa Insurance to ensure that the company understood the critical financial situation it was in and to require the board of directors to assume its legal responsibilities and take urgent and effective decisions to enable the company to meet solvency requirements for the benefit of insurance policyholders and beneficiaries.

SAMA also confirmed that the suspension would not be lifted until the company had taken effective measures to correct its solvency position.

Wafa Insurance has yet to publish its financial statements for 2018. The company expects to publish them by 31 August 2019.

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