United Assurance invests SAR 184 mln from rights issue proceeds

United Cooperative Assurance (UCA) has used SAR 184 million from a total of SAR 210 million in rights issue proceeds to boost its solvency margin by investing in local funds and shares, the company said in a statement.

UCA invested SAR 44.5 million and SAR 10 million in local funds and shares, respectively. Its current balance at local banks stands at SAR 129.5 million, it added. 

A total of 21 million were added to the insurer’s statutory reserve in line with capital increase requirements.

Direct and indirect expenses associated with the rights issue amounted to SAR 4.94 million. A difference of SAR 353,510 was observed in capital increase costs, which were originally estimated at SAR 5.3 million as stated in the prospectus, the company added.

Overall, net proceeds of the rights issue reached SAR 205.05 million.