AlAhli Takaful uses rights issue proceeds ​to enhance​e​ lines, launch new products

AlAhli Takaful Co. (ATC) said that SAR 80 million in proceeds, generated from its rights issue launched from Nov. 26 to Dec. 4, 2011, were used mainly for enhancing its production lines and launching new products.

A total of SAR 5.5 million were used for the rights issue’s related expenses. The company invested SAR 4.1 million in its trademark, as well as to enhance and increase its outstanding products or launch new ones. ATC also transferred SAR 59.5 million to the statutory reserve and solvency margin.

The insurer said a new automatic system will replace the existing one, referring to the allocation of SAR 15 million from 2010 to 2014 in the prospectus for enhancing insurance lines or launching new products.

ATC expects to spend the remaining balance of SAR 10.9 million on implementing and operating the new automatic system along with its trademark investment.