Whereas the company also announced on 13 Dhu Al-Qi'dah 1446H, corresponding to 11 May 2025, that the accumulated losses attributable to shareholders had reached SAR 218.9 million as of 31 March 2025, due to a decrease in insurance revenues and an increase in general and administrative expenses and insurance service expenses.

Accordingly, the United Cooperative Assurance Company announces the issuance of a resolution by the Board of Directors on its meeting held on Tuesday 07 Dhu Al-Hajjah 1446H, corresponding to 03 June 2025, affirming its previous recommendation regarding the capital reduction, which aimed to restructure the company's capital and write-off part of the accumulated losses as follows:

"Recommending to the Extraordinary General Meeting the reduction of the Company's Capital from SAR (400) Million to SAR (300) Million by restructuring the company's capital and writing off an amount of SAR (100) Million from the accumulated losses".

The Board will consider adjusting the company's capital after the completion of the proposed capital reduction process as to achieve the company's interests and aspirations.

Whereas the company also announced on 13 Dhu Al-Qi'dah 1446H, corresponding to 11 May 2025, that the accumulated losses attributable to shareholders had reached SAR 218.9 million as of 31 March 2025, due to a decrease in insurance revenues and an increase in general and administrative expenses and insurance service expenses.

Accordingly, the United Cooperative Assurance Company announces the issuance of a resolution by the Board of Directors on its meeting held on Tuesday 07 Dhu Al-Hajjah 1446H, corresponding to 03 June 2025, affirming its previous recommendation regarding the capital reduction, which aimed to restructure the company's capital and write-off part of the accumulated losses as follows:

"Recommending to the Extraordinary General Meeting the reduction of the Company's Capital from SAR (400) Million to SAR (300) Million by restructuring the company's capital and writing off an amount of SAR (100) Million from the accumulated losses".

The Board will consider adjusting the company's capital after the completion of the proposed capital reduction process as to achieve the company's interests and aspirations.

- Capital before reduction: SAR 400,000,000

- Capital after reduction: SAR 300,000,000

- Capital reduction percentage: 25%

- Number of shares before reduction: 40,000,000

- Number of shares after reduction: 30,000,000

- Reason for capital reduction: Restructuring the company's capital by writing-off a portion of the accumulated losses as of 31 March 2025, amounting SAR (100) Million.

- Method of capital reduction: Cancellation of 10,000,000 shares of the company's shares, with each share being reduced by 0.25 share.

- Impact of capital reduction on the company's obligations, operations, or financial, operational, or organizational performance: There is no impact from the company's capital reduction on its financial obligations.

- Reduction Date: The end of the second trading day following the Extraordinary General Assembly meeting at which the capital reduction was decided.

- Approvals: The recommendation to reduce the company's capital is subject to the approval of the relevant regulatory authorities and the company's Extraordinary General Assembly.

- Appointing a financial advisor and submitting the capital reduction request file to CMA: The company will consider appointing a financial advisor regarding the capital reduction, and an announcement will also be made at a later time when the company's capital reduction request file is submitted to the Capital Market Authority for approval.