Riyadh – Mubasher: The Mediterranean and Gulf Insurance and Reinsurance Group (Medgulf) on Tuesday signed an agreement with specialised consulting office to prepare restructure plan in order to improve the group’s solvency.

The consulting office will collaborate with Medgulf’s executive management, and the group will hold meeting to discuss the restructure plan and approve it to be sent to the Saudi Arabian Monetary Authority (SAMA), according to a bourse statement.

Medgulf noted that it will not be able to commit to the requested solvency on 31 December.

In October, the SAMA warned MedGulf about the decline in its solvency margin, and that MedGulf must commit to the article (68) of the insurance market code of conduct regulation maximum on 31 December 2017.

By 10:13 am KSA time, Medgulf’s stock fell 1.87% to SAR 28.85.