Allied Cooperative Insurance Group announces the latest developments regarding the Board of Directors' recommendation to increase the Company's capital by issuing shares with suspension of preemptive rights – (the signing of a subscription agreement with Diar Al-Arabia Investment Company)

In accordance with the Subscription Agreement and the conditions mentioned below, the Company will increase its capital from (291,000,000) Saudi Riyals to (300,000,000) Saudi Riyals with the suspension of preemptive rights, by offering (900,000) new ordinary shares representing (3.09%) of the Company’s current capital, with a nominal value of (10) Saudi riyals per share (the “New Shares”). In full consideration of the issuance of the New Shares, the Subscriber has committed to pay to the Company a subscription amount of (10) Saudi Riyals per New Share being a total subscription amount of (9,000,000) Saudi Riyals. The New Shares will be fully subscribed by the Subscriber, so that the Subscriber’s ownership in the Company’s share capital will be (3%) after the capital increase, following the approval of the Insurance Authority for the increase of the Company's capital which was obtained on 04/03/1447H (corresponding to 27/08/2025G), and subject to the approval of the Capital Market Authority.

It should be noted that Subscriber is not a related party to the Company.

The capital increase is subject to a number of conditions precedent which primarily include obtaining: (i) the non-objection of the Insurance Authority, and the approval of each of the Capital Market Authority and Tadawul; (ii) the approval of the Company's extraordinary general assembly and (iii) internal approvals required at the Subscriber.

Upon completion of the capital increase, the Company shall complete all necessary legal procedures with the Ministry of Commerce, Saudi Business Center, the Capital Market Authority, Tadawul, and Edaa to list the Subscription Shares and have them traded on the Saudi Stock Exchange as soon as possible.

The Company has appointed Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital) as its financial advisor in connection with the procedures of the potential capital increase.