Riyadh – Mubasher: Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) has announced that its shareholders approved a significant capital increase during the Extraordinary General Meeting (EGM) held on 21 June.
The assembly, which convened virtually through the Tadawulaty system with a quorum of 84.01%, authorized the doubling of the company’s capital from SAR 1 billion to SAR 2 billion.
This expansion will be executed through the issuance of one bonus share for every existing share held by investors, marking a 100% increase in the total number of shares.
The capital hike involves the capitalization of SAR 1 billion from the company’s retained earnings account. Following the increase, the number of outstanding shares will rise from 100 million to 200 million.
According to the board of directors, the primary objective of this move is to bolster the company’s financial position and provide the necessary capital base to achieve its long-term strategic objectives.
Eligibility for the bonus shares was granted to shareholders registered in the company’s records at the Securities Depository Center by the end of the second trading day following the assembly date.
In addition to the capital restructuring, the assembly reviewed and approved the board of directors' report and the external auditors' report for the fiscal year ending 31 December 2025.
Shareholders also ratified the financial statements for the same period and approved the discharge of board members from liability for 2025.
To oversee the upcoming financial periods, the assembly appointed Dr. Mohamed Al-Amri & Co. (BDO) and Al-Ayouti & Co. as external auditors.
These firms will be responsible for reviewing and auditing the financial statements for the second, third, and annual periods of 2026, as well as the first quarter (Q1) of 2027. The fees for these services were set at SAR 750,000 and SAR 520,000, respectively.
The meeting also addressed corporate governance and compensation, with shareholders approving a total of SAR 2.59 million in remuneration and compensation for board members for 2025.
Furthermore, the board was granted the authority to exercise the powers of the General Assembly as permitted under the Companies Law for a period of one year or until the end of the current board session, whichever comes first.
A substantial portion of the meeting was dedicated to the approval of related-party transactions and contracts conducted during 2025. The most significant of these was with Al Rajhi Banking and Investment Corporation, involving insurance policies valued at approximately SAR 6.62 billion.
Other approved contracts included insurance policies with various entities such as Al Farabi Petrochemicals, Rent to You, and Fursan Travel and Tourism.
The company emphasized that all such transactions were conducted for a duration of one year and were completed without any preferential terms or conditions, involving indirect interests from several board members including Chairman Abdullah bin Sulaiman Al Rajhi and Vice Chairman Saud bin Abdullah Al Rajhi.
