SAMA’s Announcement on SANAD Cooperative Insurance and Reinsurance Company

RIYADH, Saudi Arabia, Sept. 8 -- The Saudi Arabian Monetary Agency issued the following news:

Further to its announcement on 02/09/1435H (29/06/2014) concerning the several decisions taken against SANAD Cooperative Insurance and Reinsurance Company (SANAD), SAMA would like to announce that the aforementioned company, represented primarily by its Board, has not complied with SAMA's announced decisions included in the final warning letter delivered to the company on 02/09/1435H (29/06/2014), which required the company to submit a clear, detailed, practical and objective plan for restructuring the company and improving its solvency margin.

Whereas SANAD has not so far submitted a plan that meets SAMA's requirements,

Whereas the continuous deterioration of SANAD's financial and administrative position would severely impact the company's ability to fulfill its obligations,

SAMA has enforced the provisions of Article (19) of the Cooperative Insurance Companies Control Law, issued by Royal Decree No. M/32 dated 02/06/1424H, restraining SANAD from accepting new subscribers to any of its insurance activities, thus, banning it from issuing or renewing any insurance policy whatsoever as of 12/11/1435H (07/09/2014) until a decision by SAMA is issued stating that it has rectified its status. SAMA has also directed SANAD to settle and pay out all due claims and compensations arising from insurance policies issued before 12/11/1435H.

In line with the transparency principle, in accordance with the requirements of the principles of protecting the interests of those insured by SANAD and for the sake of insurance sector's public interests, SAMA hereby announce this to all stakeholders and interested people.

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