Riyadh – Mubasher: Al Etihad Cooperative Insurance Company has signed a contract with the Saudi Ministry of Human Resources and Social Development at a total value of SAR 391.24 million, according to a bourse filing.
Al Etihad Cooperative will provide its insurance services for one year to cover the financial dues related to non-Saudi workers in the private sector upon the agreed terms and conditions and the insurance policy approved by the Insurance Authority (IA).
The agreement will be carried out in cooperation with Saudi insurance and reinsurance companies after obtaining the final approval of the Insurance Authority.
Al Etihad Cooperative expected the financial impact of the contract to reflect on its financial performance starting from the fourth quarter (Q4) of 2024, which already commenced on 1 October.
The insurance agreement aims to “protect the financial rights of non-Saudi workers in delinquent entities according to the classification of the Ministry of Human Resources and Social Development.”
The insurance coverage will include “wages, unpaid dues, and a return ticket to the worker's home country within the agreed upon cover limits,” according to Al Etihad Cooperative’s disclosure on the Saudi Exchange (Tadawul).
Earlier in 2024, the company was granted a regulatory approval for its request to increase the capital through the issuance of 5 million bonus shares.
