Saudi Arabia – Insurance sector reform pushes speculators to withdraw
Wednesday, 04 27 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
The insurance companies applied the principle of inverse proportionality between speculation and capital increases after some of these companies increased their capitals. This pushed speculators to gradually withdraw from the stock shares of the sector away from first period where the limited capitals attracted speculators previously.
Mr. Siraj al-Arabi member of the capital markets committee at the Jeddah Chamber of Commerce and Industry said that the insurance sector no long attracts speculators since most insurance companies raised their capitals last year and changed their board of directors. The results of companies subsequently improved with their new boards of directors and reflected positively in the financial results as compared to year 2014 where many companies had to cope with large losses.
Source: Al Eqtisadiah