Arig's cessation of activity, directives of the Central Bank

ArigOn 16 May 2019, The Central Bank of Bahrain (CBB) duly noted the decison of Arig's board of directors to suspend the group's underwritings.

The supervisory authority will examine Arig's decision taking into account the regulatory obligations imposed on the group. The feedback of the board of directors to the CBB's instructions and directives dated 16 April 2019 will also be reviewed.

Below are the instructions of the CBB:
  • Appoint a permanent Chief Executive Officer (“CEO”) to the Company acceptable to the CBB. On interim basis, appoint one of senior staffs as the Acting CEO of the Company.
  • Suspend, with immediate effect, all decisions related to staff layoffs and business termination at overseas branches/offices/subsidiaries, until a clear action plan is submitted to the CBB.
  • Submit a clear business strategy on the way forward.
  • Fill all vacant core business function positions and other critical functions with suitable staff.
  • Seek a rating from a rating agency and work towards further business enhancement.
  • Make a press release on the strategic direction of the Company once the same is discussed and agreed with the CBB.
  • The board should acquaint themselves with sound governance practices, and the trends and opportunities in insurance business.

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