Riyadh – Mubasher: Allied Cooperative Insurance Group (ACIG) has issued a strategic update regarding its financial position following a disclosure that its accumulated losses have reached 51.97% of its total capital.
In a statement released to the Saudi Exchange (Tadawul), the company’s board confirmed that it is actively implementing corrective measures to address the deficit and is evaluating a range of capital-restructuring options to ensure long-term operational sustainability and regulatory compliance.
The announcement serves as a follow-up to the company’s previous disclosure on 6 May 2026, which first alerted shareholders to the breach of the 50% loss threshold.
Under Saudi Arabian capital market regulations, reaching this level of accumulated losses triggers specific reporting requirements and necessitates a formal plan to rectify the financial standing of the listed entity.
During a board meeting held on 30 June 2026, the directors reaffirmed their commitment to the ongoing execution of approved recovery plans.
These plans are primarily focused on enhancing the technical performance of the company’s core insurance business. Specifically, the board highlighted a renewed focus on improving underwriting and pricing efficiencies.
By refining these processes, ACIG aims to achieve better risk selection and premium adequacy, which are critical components in reversing underwriting losses.
In addition to technical improvements, the board is prioritizing operational efficiency and cost rationalization. The company intends to streamline its internal operations to reduce administrative overhead and improve overall financial performance.
This dual approach of increasing revenue quality while controlling expenditures is designed to support the company’s solvency margin and stabilize its financial position.
To further bolster the balance sheet, the Board of Directors has formally tasked the executive management team with conducting a comprehensive study of all available financial options. The scope of this study is broad, including the potential for a capital increase through a rights issue or the attraction of strategic investors.
The management team is also authorized to explore any other viable alternatives that could provide the necessary liquidity and capital support to meet the company’s obligations and growth objectives.
The results of this management study will be presented to the board for final deliberation. Should the board decide on a specific course of action, such as a capital restructuring, it has confirmed that it will take the necessary legal and regulatory steps to convene an Extraordinary General Assembly.
This meeting would allow shareholders to vote on the board’s recommendations, ensuring that all measures taken are in accordance with the Companies Law and protect the rights of the investors.
ACIG emphasized that these steps are part of a broader commitment to transparency and the continuous updating of stakeholders regarding the company’s financial health. The board noted that it remains focused on maintaining the company's stability and sustainability in a competitive insurance market.
The company stated that there are no immediate costs associated with these latest developments and that there has been no delay in the reporting process. ACIG has pledged to keep the market informed of any material developments or the outcomes of the executive study as they arise.
ACIG’s Ordinary General Meeting approved the financial reports for 2025 and the appointment of external auditors for the upcoming periods.
