Wafa Insurance to dissolve if shareholders fail to convene before June 20

Saudi Indian Company for Cooperative Insurance (Wafa Insurance) said that if the extraordinary general assembly fails to convene before June 20 or fails to make a decision to resolve the accumulated losses, the company shall be dissolved by law, according to Saudi insurance regulations.

Shareholders must attend the extraordinary general assembly meeting scheduled on May 30 at Wafa’s headquarters in Riyadh or vote online to avoid such result, the insurer said in a statement to Tadawul on Thursday.

The losses stand at about SAR 70.12 million, or 57.58 percent of the firm’s capital of SAR 122 million, Argaam previously reported.

Last month, Wafa’s board of directors recommended an 18.03 percent capital reduction to SAR 100 million to offset accumulated losses and support future growth.

Both the Capital Market Authority (CMA) and Saudi Arabian Monetary Authority (SAMA) approved the process.