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A Clarification Announcement from Al-Rajhi Company for Cooperative Insurance Regarding a Lawsuit
| Element List | Explanation |
|---|---|
| Announcement Detail | In order to clarify to the shareholders and investors about the announcement issued by one on of the Gulf Stock Exchanges regarding the final decision in the Lawsuit filed by Arab Insurance Group (ARIG) against Al Rajhi Cooperative Insurance Company (Al Rajhi Takaful) regarding a dispute over a portion of insurance premiums in the contractual relationship that began between the parties in 2015, due to the non-receipt of insurance premiums from the insured related to Extended Warranty Insurance on the insured policies, which ARIG reinsures. We clarify the following: Case: Plaintiff: Arab Insurance Group (ARIG) Defendant: Al Rajhi for Corporative Insurance Company (Al Rajhi Takaful) Facts: ARIG Company has filed a lawsuit against Takaful Al Rajhi Company with the Insurance Disputes Committees, based on the disagreement between them regarding the amount due. Takaful Al Rajhi Company did not object to the amount claimed by ARIG Company, which is only 15,811,532 Saudi Riyals. However, ARIG Company demanded an amount of 33,262,312 Saudi Riyals. This amount consists of unpaid insurance premiums (as ARIG identified). In 2024, the final decision was issued by IDC Appeal Committee with “Enforce Al Rajhi Takaful to pay SAR25,441,124.45 to ARIG including the fees of Charted Accountant.” Al Rajhi Takaful Procedures: From the Lawsuit started Al Rajhi Takaful has taken all the necessary steps to ensure its position is secured: - %100 Financial Reserves of the claimant amount from the plaintiff. - SAR15,811,523 which is the majority portion of the claim amount outside the dispute where Al Rajhi Takaful did not object to its payment (prior the lawsuit) to ARIG as it represents the insurance premiums. - SAR16,419,272 represents the actual amount of the dispute and pertains policies have been cancelled (where the amount was reduced to SAR9,629,592 according to the decision). - Obtaining legal advice from a leading Law Firm specializing in litigation. Conclusion: We assure all investors and shareholders that the entire amount of the lawsuit has been reserved. The risks associated to the lawsuit have been assessed previously, and we confirm that the matter is not considered a material event. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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Last Price 136.0
Net Change -2.0 (-1.45%)
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