Al Sagr Insurance SAR 400M investment portfolio seen to increase after capital hike: MD

Logo of Al Sagr Cooperative Insurance Co.

Al Sagr Cooperative Insurance Co.'s investment portfolio is currently estimated at SAR 400 million, and is expected to increase after the capital hike, CNBC reported, citing Managing Director Yasser Alharbi.

Investment is one of the insurer's most significant financial resources, especially in light of fierce competition in the insurance market, Alharbi said, expecting the company to boost its insurance portfolio at a level equal to or higher than the increase in the insurance market.

The capital increase aims to expand the company's business as well as help it keep pace with economic changes and the growth of the local insurance market, the Managing Director said.

He indicated that the company is currently working on exploring better opportunities for partners or other mergers. "The merger idea is expected to discussed again in the future," Alharbi noted.

The IFRS 30 gives the company more transparency into its financial performance, as this accounting standard allows the insurer's results to be close to reality and reflect its profitability or unprofitability.

The decision not to distribute cash dividends for 2023 aimed to support the company’s financial solvency margin to easily pay the customers' claims, Alharbi said. He indicated that once the opportunity to pay cash dividends is available, it would immediately be studied.

Al Sagr Insurance always seeks to compete and boost its market share, and it always aims to keep pace with changes in the insurance sector through developing the existing insurance products and offering new ones, the official said.

On April 24, the company obtained the approval of the Capital Market Authority (CMA) to raise its capital to SAR 300 million by way of a SAR 160 million rights issue, according to data available with Argaam.