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00:00 The Financial Market Authority has agreed to the request of the Saker Company to increase its capital by proposing priority rights worth 160 million riyals.
00:09 The authority clarified in its statement that the price of the proposed and the number of shares proposed for the acquisition will be determined by the company after the end of the trading day of the General Assembly.
00:19 It also indicated that the rights of the shareholders in the record of the shareholders issued by the Administration at the end of the second trading day are not normal.
00:31 Dr. Yasser Al-Harbi, the founding member of the company, joins us to talk about the increase in the capital of the Saker Insurance Company.
00:38 Welcome Dr. Yasser and thank you for being here.
00:41 After this agreement, we are talking about 160 million riyals as an increase in the company's capital. What are the plans for using capital?
00:50 Good morning to you and all the viewers. Thank you for the invitation and for giving us the opportunity to speak to all the contributors and all the people in the Saudi market.
01:02 I would like to thank the regulatory bodies, the insurance and the financial market, for agreeing to the issue of security yesterday,
01:15 by allowing the company to increase its capital to 160 million riyals according to the plan that was presented to the regulatory bodies.
01:23 The real goal was to expand business, to counter economic changes and to grow the insurance market in the Kingdom in a tangible way,
01:40 and the company's desire to compete with this growth in the sector and the increased demand for the company's insurance portfolio,
01:52 which is better than the increase in the sector in general.
01:56 Yes. Today, will the increase in capital be a step away from the idea of integration that was previously proposed by the contributors, Dr. Yasser?
02:08 Or was the process of moving away from it only temporary due to the previous objection to the integration process?
02:16 The integration project was rejected by the public before the assembly, and after that the company resorted to a fair procedure,
02:29 which was temporarily resolved to get a better opportunity for the integration of partners.
02:42 In fact, the search is still on for the best opportunity for the company and contributors.
02:50 So the idea is not very far away. We may see it proposed again in the future.
02:56 Yes, we see some effects of the regulatory measures on most companies, according to the new company system, Dr. Yasser.
03:09 How are these regulatory measures affecting the insurance company?
03:14 In fact, the IFRS-13 regulatory measure, which was implemented last year, gives the most transparency for the performance of the financial company.
03:27 The financial assets were not covered, and the company did not deal well with them in the previous standards.
03:36 This day made the results very close to reality, and it reflects the real perspective of the company's profitability or non-profitability.
03:52 In general, we saw that the estimated deductions in the fourth quarter were 10%.
04:00 Do we expect to see an improvement in these deductions in the first quarter for the company, Dr. Yasser?
04:09 Of course, in the first quarter of 2024, the numbers will not end from the results until this hour.
04:18 But in the insurance market, as you know, the entire financial year is taken, so the results differ in quarters, but the important thing is the final result at the end of the year.
04:36 Yes.
04:37 Of course, the renewal seasons are mostly in certain quarters, and the size of the market varies from quarter to quarter.
04:47 But you decided not to distribute profits even to contributors in 2023.
04:52 Is this a temporary decision to not distribute, and after the increase in capital, can we promise contributors to redistribute?
05:00 In fact, the decision of the Council was not to distribute, of course, to support the financial function of the company.
05:08 Therefore, it was a logical and reasonable decision in the face of its employees in terms of fulfilling the requirements.
05:17 This was the goal.
05:19 And God willing, if the opportunity arises and there is a possibility of spending profits, God willing, it will be studied and clarified.
05:28 Will there be an increase in the market share of the company after the increase in capital?
05:34 Or even new products for employees, Dr. Yasser?
05:38 The companies are always in competition to raise market share.
05:48 Also, the development department is working on the market and is working on the launch of new products.
05:57 The market has changed.
06:00 Traditional products have not become the most profitable products for companies.
06:07 Therefore, there is no doubt that this is one of our sincere goals and important plans to take care of the development of products.
06:22 And to provide solutions, even a market race, in a race with other competing companies.
06:30 The focus will be on certain products, Dr. Yasser.
06:35 And what is the investment portfolio of the development process?
06:39 Do we expect the investment portfolio to increase compared to the past period?
06:46 And how much is it currently?
06:48 The investment portfolio is currently about 400 million.
06:56 And there is no doubt that it will increase after the year.
07:00 Investment is one of the most important financial resources for the company.
07:06 Due to the high competitive nature of the main activities in the company.
07:12 The growth, God willing, is expected.
07:16 We wish you good luck, Dr. Yasser.
07:20 The war of the active members of the Saqqara company for insurance.
07:24 Thank you for all these details.