Wafa Insurance says investment bid should be submitted in 14 days to be ‘winning card’ for appeal

Saudi Indian Company for Cooperative Insurance logo

Majid Al-Suwaigh, Chairman of Saudi Indian Company for Cooperative Insurance (Wafa Insurance), said the only solution for the company is that an investor should submit a bid to the trustee to invest in the insurance sector within 14 days so this bid may be referred to the competent authorities.

On his official twitter account, Al-Suwaigh added that this will be the board's winning card for appeal, confirming that the board is still ready to cooperate with the regulatory authorities in this regard.

He added that it is legitimate to challenge the ruling before the Court of Appeal, according to Tadawul announcement.

The board of directors' powers were suspended, and all matters are now in the hands of the trustee Walid Subhi.

Al-Suwaigh thanked everyone who sought to save the insurer during this period, but its position has been very difficult since the board came into power. "When we provided the liquidity, the company was committed to paying it to the creditors," he noted.

Wafa Insurance has been suspended since 2018 from undertaking any activities, or having financial statements, auditors, or a commercial register. The company's debts stood at SAR 209 million and its capital was at the minimum level set by the central bank for the insurance firms at SAR 100 million. Thus, the company could not reduce its capital.

In addition, the number of employees declined to 12 from 265 and the deposit was only for certificate holders only.

The insurer announced, on Dec. 16, the issuance of the Commercial Court’s decision in Riyadh, ending the company’s financial reorganization procedure and opening the liquidation process, Argaam reported.