Aljazira Takaful shareholders approve related party transactions

Aljazira Takaful Taawuni Co.’s shareholders approved the business transactions and contracts concluded with related parties in the fiscal year 2019 amounting to SAR 284.5 million, during the ordinary general meeting held on June 1, 2020.

The transactions include collective insurance policies for the personal finance portfolio, collective insurance agreement for the real estate portfolio, collective insurance services agreement for bank employees, purchase of sukuk, and loan portfolio protection services agreement for bank employees.

Shareholders also approved contracts with Aljazira Capital Co., a related party, represented in managing profit from joint funds, indicating that the total amount of transactions between the two amounted to SAR 2.6 million in FY2019 without preferential conditions.

In addition, they approved contracts worth SAR 199,000 with Aman Insurance Agency Co., fully owned by Bank Aljazira, a related party, without preferential conditions. The contracts include marketing of insurance products of Aljazira Takaful to Bank Aljazira’s clients through the bank’s channels.

The agreements represent an indirect interest for board members, Abdul Majeed I. Al-Sultan, Ziad T. Aba Al-Khail, and Khalid Al Othman.

The general assembly also approved work and contracts to be concluded with Sager Abdullatif Nadershah and Khalid Al Othman, members of the board of directors, represented in individual insurance policies in return for annual installments in which they have a direct interest, without preferential conditions.