A grace period granted to loss-making insurers
Saudi Arabia Monetary Agency, (SAMA), has asked insurers whose accrued losses exceed 50% to submit a restructuring plan within 12 months. This grace period stands as the last chance for the recovery of these companies.
According to a 2015 report published by Albilad Capital, ten insurance companies had an equity-to-capital ratio above one by 31 December 2015. Contrarily, 22 companies posted a ratio below 1. These figures show that two thirds of the market insurers are sustaining heavy losses. Five companies have even posted a ratio below 0.5.
In 2015, 14 insurers reported losses while 19 were profit-making.
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Fri, 05/08/2016 - 08:47
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