Riyadh – Mubasher: Saudi Indian Company for Cooperative Insurance (Wafa Insurance) on Monday said that its board recommended reducing the company’s capital.

Wafa insurance will decrease its capital by 18.03% to SAR 100 million from SAR 122 million, according to a statement to the Saudi Stock Exchange (Tadawul).

The company’s shares will decline to 10 million shares instead of 12.2 million, the insurance services provider noted.

Wafa Insurance clarified that capital reduction decision aims at trimming its accumulated losses and boosting future growth, affirming that the move would not affect its financial commitments.  

Moreover, the company seeks to bolster its solvency.

Wafa Insurance noted that its extraordinary general assembly recommended increasing the company’s capital through issuing right issues at a value of SAR 10 million after completing the process of capital reduction.