IGI abandons Walaa rights issue on strategy change: Report

A change in strategy at International General Insurance Co. (IGI) led the company to abstain from subscribing to Saudi United Cooperative Insurance Co.’s (Walaa) latest rights issue, Al Arabiya reported, citing an unnamed Walaa board member.

IGI had recently converted its reinsurance operations and its non-subscription was not expected to reflect negatively on the offering coverage, given Walaa’s management’s strict guidance, the official added.

The capital increase is aimed at improving the company’s financial solvency and upgrading its credit rating from “B-" to “A”, which will should help the company qualify for mega contracts.

IGI owns a 10.5 percent stake in the insurer, according to data available on Argaam. Walaa announced on Tuesday that IGI would not be participating in the rights issue. The offering will continue until May 14.