The Saudi Reinsurance Company (Saudi Re) , a leading reinsurer in the Kingdom, announced
According to the official statement published on the Saudi Stock Exchange (Tadawul), the contract was signed on February 4, 2024, and has a one-year term. The significance of this transaction lies in its size, with its total value exceeding 5% of Saudi Reinsurance's total revenue as recorded in its latest audited financial statements, making it one of the company's key deals this year. The positive financial impact of this contract is expected to be clearly reflected in the company's financial results for the fiscal year 2024.
Background on the Saudi Reinsurance Sector
Saudi Re was established as the first reinsurance company in the Kingdom of Saudi Arabia, with the primary objective of serving the local market and localizing a significant portion of reinsurance premiums that previously went to international markets. The company plays a pivotal role in achieving the goals of Saudi Vision 2030 related to developing the financial sector and increasing its contribution to the GDP. By building strong local capabilities, Saudi Re contributes to enhancing the resilience of the national economy and reducing reliance on foreign markets for managing major risks.
The importance of partnership and its impact on the market
This alliance between Saudi Re and MedGulf is of paramount importance to the local market. Nationally, the agreement supports the Saudi Central Bank's (SAMA) efforts to deepen the domestic insurance market and increase the retention rate of insurance premiums within the Kingdom. This not only enhances liquidity in the local economy but also contributes to building specialized technical expertise in risk management and reinsurance.
Regionally, this partnership solidifies Saudi Re’s position as a key and trusted player in the Middle East and North Africa. It also sends a strong message of confidence in the ability of Saudi companies to manage complex and high-value reinsurance agreements, potentially encouraging more regional insurers to partner with them. For MedGulf, securing reinsurance coverage from a strong local partner provides greater stability and a deeper understanding of the risks in the Saudi market, which will positively impact the services it offers to its clients.
