MetLife works to meet capital raise requirements

MetLife AIG ANB Cooperative Insurance Company has said it is working to meet a set of capital raise requirements that it received in a letter from the Saudi Arabian Monetary Agency (SAMA) on May 7.

The insurer plans to raise its capital through a SAR 175 million rights issue, it said in a filing to Tadawul.

MetLife’s board had recommended the capital raise on April 27. Approval for the process is still pending SAMA’s requirements and regulatory approvals, including the go-ahead from company’s general assembly.

Saudi-based insurers such as Wafa, AICC, United Assurance, and Al-Alamaiya have raised their capitals through rights issues in an attempt to offset accumulated losses, according to data compiled by Argaam.

The crowded insurance sector in the kingdom has come under pressure in recent years due to low penetration rates and higher costs, which has made it more difficult for smaller companies to defend their market share.