Al-Etihad Insurance says lawsuit filed to redeem $16.4 mln rejected

Logo of Al-Etihad Cooperative Insurance Co.

Al-Etihad Cooperative Insurance Co. announced that it received, on Aug. 2, the decision of the General Secretariat of Committees for Resolution of Securities Disputes on rejecting the lawsuit filed by the company against Saudi Venture Capital Investment Company due to lack of jurisdiction. 

In a bourse statement, the insurer said that the lawsuit, filed in March 2022, is related to a financial dispute about an investment. 

The dispute is related to the nature of an investment worth $16.4 million, where the respondent did not satisfy Al-Etihad’s request to liquidate at maturity on the basis of illiquidity of investments despite maturity date being due.

The lawsuit does not have any financial impact as the insurer estimated the maximum probable loss and applied an equivalent impairment loss to 2020 financials.

The insurance service provider will not be impacted by any substantial legal, regulatory, or operational risks that may result from the lawsuit, including the results of such impact on the firm’s financial, legal or operational position.

Al-Etihad’s legal department is currently evaluating the next steps to be implemented, which will be announced in due course.