Riyadh-Mubasher: Arabia Insurance said the board proposed reducing capital by 33.75% (SAR 135 million) from SAR 400 million to SAR 265 million, the insurer said in a bourse statement on Sunday.

The reduction will be effected through cancelling 13.5 million shares to offset SAR 135 million from accumulated losses.

The capital reduction, which is subject to the approval of competent authorities and shareholders, does not have an impact on the company's financial liabilities.

Meanwhile, the board accepted the resignation of General Manager Mohammed Khabbaz, to be effective as of 8 November.

Khabbaz, who will continue at the company as a board member, submitted his resignation for personal reasons.

The board appointed Ammar Halwani as acting general manager as of the date of accepting Khabbaz's resignation.