Riyadh – Mubasher: The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MedGulf) has announced the results of its Extraordinary General Meeting (EGM), held on 29 June 2026.
During the session, shareholders approved a strategic move to utilize a portion of the company’s share premium to extinguish its accumulated losses, while also ratifying various financial statements, auditor appointments, and a series of related party transactions involving board members and executive management.
The meeting, which was conducted via modern technology from the company’s headquarters in Riyadh, was the second call for the assembly.
The second meeting was convened at 20:15, one hour after the scheduled time for the first meeting, which failed to reach the required legal quorum. The attendance for the second session was recorded at 29.42% of the voting shares.
A primary highlight of the assembly was the approval of a capital restructuring measure aimed at improving the company’s financial position.
Shareholders voted to use SAR 77.82 million from the company’s share premium account—which totals approximately SAR 224.97 million—to fully extinguish the accumulated losses reported in the preliminary financial statements for the period ending 31 March 2026.
This accounting adjustment is a standard procedure for Saudi listed firms seeking to reset their balance sheets and remove the regulatory implications associated with carrying accumulated losses.
In addition to the loss offset, the assembly reviewed and approved the Board of Directors' report and the audited financial statements for the fiscal year ending 31 December 2025. The shareholders also discharged the board members from liability for 2025 and approved a total remuneration of SAR 2.69 million for the board for the same period.
For the upcoming financial cycles, the assembly appointed PKF Al-Bassam & Co. and United Accountants for Professional Consulting as the company’s external auditors.
These firms will be responsible for examining and auditing the financial statements for the second, third, and fourth quarters of 2026, the full year of 2026, and the first quarter (Q1)of 2027. The fees for these services were set at SAR 780,000 and SAR 850,000, respectively.
A significant portion of the agenda was dedicated to the ratification of business contracts and transactions with entities in which board members or senior executives hold indirect interests.
These transactions, which the company confirmed were conducted without any preferential terms, involved several prominent Saudi institutions.
Notable among these were insurance contracts with the Saudi Investment Bank valued at SAR 4.26 million and a SAR 5.41 million insurance policy with Qassim Cement Company.
Other ratified contracts included dealings with entities linked to Chairman Yasser bin Yousef Naghi, Vice Chairman Rakan bin Abdullah Abu Nayan, and CEO Omar Al-Mahmoud. These involved various insurance policies, claim settlements, and service fees across sectors including food supplies, transportation, and electronic data transmission.
The assembly also granted the Board of Directors the authority of the OGM for a period of one year, in accordance with Article 27 of the Companies Law.
This delegation allows the board to continue managing the company’s regulatory and licensing requirements efficiently through the current term.
The resolutions passed during this EGM reflect MEDGULF’s efforts to stabilize its financial reporting framework and maintain transparency regarding its extensive network of commercial relationships within the Saudi market.
By addressing accumulated losses and securing auditor appointments, the company moves forward with a cleared balance sheet for 2026.
