22-07-2025
ACIG directed by IA to meet minimum paid-up capital requirement
Allied Cooperative Insurance Group (ACIG) announced receiving a letter from the Insurance Authority (IA) on July 15, stating that the company must submit a corrective plan within 10 business days from the date of the letter, outlining the steps it will take to comply with the minimum paid-up capital requirement for insurance companies.
In a statement to Tadawul, the company noted that the minimum paid-up capital for insurance companies must not be less than SAR 300 million. This follows the announcement of the results of the extraordinary general meeting (EGM) held on June 22, in which shareholders voted against the proposed capital increase.
The company added that it will announce any future developments in due course.
According to Argaam data, the company's shareholders rejected the board's recommendation to increase capital via a rights issue worth SAR 209 million during an extraordinary general meeting (EGM) on June 22.
The capital hike was aimed to support the company's future plans, enhance solvency margin, and boost investment income.
ACIG's accumulated losses in Q1 2025 amounted to SAR 78.60 million, representing 27.01% of its capital.
