Announcement of Saudi Enaya Cooperative Insurance Company Regarding the Board of Directors' Recommendation to Reduce the Company's Capital and Subsequently Increase the Capital through a Rights Issue

Element List	Explanation
Introduction	Saudi Enaya Cooperative Insurance Company announces that the Board of Directors has recommended to the Extraordinary General Assembly (EGM) the reduction of the Company's capital, followed by an increase of the Company's capital through the offering of rights issue shares
Date of Board Meeting	2026-07-06 Corresponding to 1448-01-21
Capital before decrease	230,000,000
Capital after decrease	154,753,000
Percentage of Capital decrease	32.716 %
Number of Shares before Decrease	23000000
Number of Shares after Decrease	23000000
Reasons for the Capital Decrease	To restructure the Company's capital in order to offset accumulated losses
Method of Capital Decrease	The Company's capital will be reduced by SAR 75,247,000 by reducing the nominal value of each ordinary share from SAR 10.00 to SAR 6.73, while maintaining the same number of issued shares.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company	The capital reduction will have no impact on the Company's financial obligations.
Date of reduction	The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved
Approvals	The Board's recommendation is subject to obtaining the approvals of the Capital Market Authority, the relevant regulatory authorities, and the Extraordinary General Assembly.
Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA	The Company has appointed Alawwal Capital as the financial advisor for the capital reduction transaction. The Company will announce the submission of the capital reduction application file to the Capital Market Authority upon its submission.
Additional Information	On the same date, 06-07-2026, the Board of Directors also recommended to the Extraordinary General Assembly, following completion of the capital reduction process, to increase the Company's capital through a rights issue with a total value of SAR 160 million. The details of the proposed capital increase are as follows: Capital before increase: SAR 154,753,000 Capital after increase: SAR 314,753,000 Percentage of capital increase: 103.39% Number of shares before increase: 23,000,000 shares Number of shares after increase: 46,779,830 shares The primary objective of the proposed capital increase is to enable the Company to meet the minimum capital requirement prescribed by the Insurance Authority. Approval of the Extraordinary General Assembly for the proposed capital increase through a rights issue is conditional upon its approval of the proposed capital reduction. Eligibility to subscribe to the rights issue shall be for shareholders who own shares on the date of the Extraordinary General Assembly approving the capital increase through a rights issue and whose names are registered in the Company's shareholders register maintained by the Securities Depository Center (Edaa) at the end of the second trading day following the date of the Extraordinary General Assembly. The proposed capital increase remains subject to obtaining the approvals of the relevant regulatory authorities and the Extraordinary General Assembly. The Company will announce any material developments in this regard in a timely manner in accordance with the relevant regulatory requirements. The Company has also appointed Alawwal Capital as the Financial Advisor, Lead Manager, and Underwriter for the proposed capital increase.