UCA sees negative impact on 2026 results after suspension of policy issuance

UCA expects the IA suspension of policy issuance and renewals to negatively impact its 2026 results

United Cooperative Assurance Co. (UCA) expects the Insurance Authority’s (IA) decision to suspend the issuance and renewal of insurance policies for all insurance products to negatively impact its financial results in 2026.

In a statement on Tadawul, the company said the relevant impact cannot currently be quantified, noting that it will seek to implement effective and practical corrective measures to fully comply with regulatory requirements in coordination with the IA.

The company added that it will announce any developments regarding the matter in due course.

The IA recently issued a decision suspending UCA from issuing or renewing insurance policies for all insurance products, including products offered to individuals and the extended warranty product, according to Argaam data.

The insurer previously announced that the Riyadh Commercial Court accepted a request filed by one of its creditors to initiate liquidation proceedings and registered it with the court for consideration.

The Capital Market Authority (CMA) decided to suspend trading in the company’s shares as of Sept. 13, pending the CMA’s decision on the liquidation proceedings request, following the Riyadh Commercial Court’s decision to accept or reject the initiation of liquidation proceedings.

The company’s accumulated losses stood at SAR 459.57 million, representing 115% of its capital, by the end of Q2 2026.