MedGulf gets SAMA nod on 60% capital cut

The Mediterranean and Gulf Insurance and Reinsurance Co. (MedGulf) received approval from the Saudi Arabian Monetary Authority (SAMA) on Aug. 24 to reduce capital by SAR 600 million to SAR 400 million, the insurer said in a statement to Tadawul on Sunday.

Earlier this month, MedGulf said it plans to cut capital by 60 percent to narrow its accumulated losses of around SAR 734 million, which accounts for 73.4 percent of capital.

The insurer plans to write off 60 million of its outstanding shares, or 6-for-10, in line with the new corporate law. 

Saudi Fransi Capital will serve as financial advisor for the capital cut.

The capital reduction is still subject to regulatory approvals, and further details will be announced in a separate statement, the company said.