Friday, November 9, 2007

The Council of Ministers Approves Saudi Reinsurance Company

by Saudi Reinsurance Company from PRNewswire

The Council of Ministers of Saudi Arabia has approved the establishment of the professional reinsurance company operating in the Kingdom of Saudi Arabia to be incorporated as Saudi Re, "E'ada". This comes subsequent to the approval of 20 insurance companies as at October 31 to operate under the new Saudi Insurance Law and the Implementing Regulations as issued by Saudi Arabian Monetary Agency (SAMA). With Gulf Corporation Council (GCC) reinsurance market of over US$3.3 billion and a Saudi reinsurance market of US$0. 7 billion, Saudi Arabia stands as one of the most important and major reinsurance market in the area with an outstanding growth potential. Saudi Re will have a capital of a billion Saudi Riyals (US$267 million). According to the decision of SAMA it will offer 40% of its shares to the public after getting the regulatory approval from the Capital Market Authority (CMA). The Saudi Hollandi Bank was appointed by the company as financial advisor. Saudi Re's head quarter will be in Riyadh and it will operate, at the beginning, in the Saudi, GCC and other neighboring countries. The establishment of the company was promoted by Ahmad Hamad Algosaibi & Brothers who are known to have established the first insurance company in Saudi Arabia in the early 1960's.

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