Riyadh – Mubasher: The Securities Depository Center (Edaa) announced applying the capital decrease for the Saudi Indian Company for Cooperative Insurance (Wafa Insurance) on the accounts of the eligible shareholders.

The capital cut will be applied on the accounts as of 19 June, according to a bourse filing on Monday.

On Wednesday, the extraordinary general meeting (EGM) of Wafa Insurance had approved the capital reduction by 40.49%.

The company’s capital will be cut to SAR 122 million from SAR 205 million; thus, reducing the number of shares from 20.5 million shares to 12.2 million.

In April, the company had announced that its accumulated losses had reached SAR 83.3 million, representing 40.6% of the capital, and reasoned that increase to higher net incurred insurance claims.