CMA approves Wafa Insurance’s capital cut

The Capital Market Authority (CMA) has approved on May 17 Saudi Indian Company for Cooperative Insurance’s (Wafa Insurance) request to reduce capital by 18.03 percent to SAR 100 million from SAR 122 million.

The capital cut will reduce shares to 10 million shares from 12.2 million shares.

CMA’s go-ahead is subject to the insurer’s extraordinary general assembly approving the capital reduction plan, and the completion of other necessary procedures, the market regulator said in a statement.

Wafa Insurance will provide further information on the proposed method of capital reduction and the expected impact, ahead of the shareholders’ meeting, the statement said.

Last month, Wafa’s board of directors recommended an 18.03 percent capital reduction to SAR 100 million from SAR 122 million to offset accumulated losses and support future growth, Argaam previously reported.