In a clarification announcement made on March 28, 2024, Al-Rajhi Company for Cooperative Insurance(8230.SA) (Al Rajhi Takaful) addressed its shareholders and investors concerning a recent legal verdict related to a lawsuit filed by the Arab Insurance Group (ARIG). The lawsuit stemmed from a disagreement over insurance premiums in a contractual relationship initiated in 2015, specifically regarding the Extended Warranty Insurance policies that ARIG was reinsuring.

Al Rajhi Takaful elucidated that ARIG had claimed an amount of SAR 33,262,312 for unpaid insurance premiums, whereas Al Rajhi Takaful acknowledged a due of only SAR 15,811,532. The Insurance Disputes Committees (IDC) Appeal Committee ultimately decreed that Al Rajhi Takaful must pay SAR 25,441,124.45 to ARIG, inclusive of Chartered Accountant fees.

In response to the legal proceedings, Al Rajhi Takaful took proactive measures to secure its position, including the full reservation of financial reserves for the claimed amount and obtaining specialized legal counsel. The company assured its stakeholders that the lawsuit's amount has been fully reserved and assessed for risks, reaffirming that the event is not considered materially significant according to the Tadawul announcement.