Riyadh – Mubasher: Solidarity Saudi Takaful Company’s net losses before Zakat amounted to SAR 69.8 million during 2020, an increase of 59% from SAR 43.9 million in 2019.
The hike in the insurer's annual losses was ascribed to lower gross written premiums (GWP) and shareholder’s investment income by 13.72% and 51.10%, respectively, coupled with higher net incurred claims by 28.71%, according to a bourse filing on Sunday.
The company, moreover, said that the creditor objection period to merge with Aljazira Takaful Taawuni Company expired on 26 February 2021 and that no objection was received from the company’s creditors during that period.
Hence, Solidarity’s merger with Aljazira Takaful came into effect and all of Solidarity’s assets and liabilities were transferred to Aljazira Takaful, which will continue to exist, Solidarity said in a separate bourse statement.
In January, the extraordinary general meeting (EGM) of Aljazira Takaful approved raising the firm’s capital from SAR 350 million to SAR 470.7 million to merge with Solidarity.
The EGM consented to merge Solidarity into Aljazira Takaful by issuing 0.482656120 shares in Aljazira Takaful for every share in Solidarity.