Arab News, Sunday, Oct 24, 2021 | Rabi Al-Awwal 17, 1443
Saudi insurer MEDGULF to increase capital by 50% to $279mn for more solvency
Saudi Arabia:
The Mediterranean and Gulf Insurance and
Reinsurance Company (MEDGULF) plans to increase its capital by 50 percent to
boost its solvency and leverage business expansion opportunities.
The company plans to increase its capital from
SR700 million ($186.6 million) to SR1.050 billion ($279.9 million), by offering
35 million new ordinary shares through a rights issue at an offer price of SR12
, and a nominal value of SR10 per share, a statement revealed.
Up to 15.9 percent of the offering proceeds will
be invested in information technology applications with focus on business
development, sales generation and customer service, the company noted in the
offering prospectus.
MEDGULF received approval on the capital increase
from the Saudi Central Bank in June 2021 and from Saudi Capital Market Authority
(CMA) in September 2021. The company will have its extraordinary general
assembly meeting on November 3rd to discuss the offering plans further.
MEDGULF is a major player in the Saudi insurance
industry with health insurance being the largest business division, representing
72 percent of gross premiums as on December 31, 2020, followed by motor
insurance at 17 percent and general insurance at 11 percent.