Riyadh – Mubasher: The Saudi Arabian Monetary Authority (SAMA) warned Mediterranean and Gulf Cooperative Insurance and Reinsurance (MedGulf) on Monday, 2 October about the drop in its solvency margin.

MedGulf must commit to the article (68) of the insurance market code of conduct regulation maximum on 31 December 2017, and it must submit its financial reports to the SAMA on 18 January 2018, according to a statement on Tuesday to the Saudi Stock Exchange (Tadawul).

SAMA stated that this is a final warning for MedGulf and if the insurance company does not improve its solvency margin, SAMA will suspend it from issuing or renewing any insurance policies.

MedGulf signed an agreement with one of the investment banks to improve its solvency.

The insurance firm’s extraordinary general meeting (EGM) on Friday, 22 September approved reducing its capital by 60% to reach SAR 400 million from SAR 1 billion.

MedGulf’s stock levelled down 2.24%, closing at SAR 32.79 on Tuesday.