The board of directors of Gulf General Cooperative Insurance Company (GGI) has recommended a reduction of the company's capital, as decided during their meeting held on 29 June 2025, according to a bourse filing on the Saudi Exchange (Tadawul) yesterday.
The stock exchange statement said that the board recommended submitting the capital reduction proposal to the extraordinary general assembly, noting that the reason for the capital reduction is to restructure the company's capital. The reduction will involve writing off an amount of SAR162.1m ($43.2m) from accumulated losses.
The proposal is for the capital reduction to be effected through the cancellation of 16,211,800 shares, or by 54.04% for each share.
The insurer said that the capital decrease would have no material impact on the company's obligations and operations nor on its operational, financial and organisational performance. It added that the ownership stake of each shareholder will not change as a result of the capital reduction.
Subject to the approval of the official authorities and the extraordinary general assembly, the intended date of capital reduction is the end of the second trading day after the extraordinary general assembly meeting in which the decrease was resolved, said GGI.
The proposed capital restructuring exercise followed one carried out 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.
Accumulated losses stood at SAR138.3m at 31 December 2024, down from SAR244.1m at the end of 2023. The company’s net loss after zakat and tax reached SAR94.2m in 2024 compared with a net profit of SAR3.5m in 2023.