Riyadh – Mubasher: Al Alamiya for Cooperative Insurance signed an agreement with Riyad Bank on Thursday.

Under the deal, the insurance firm will provide insurance coverage on the mortgage programme of the bank to its customers for a period of one year starting from 1 May 2017 on market terms. 

The agreement is expected to have a positive financial impact on the company’s sales, as it will generate a total gross written premium worth about SAR 23.1 million during its term, according to a bourse filing on Sunday.

The Saudi-listed firm noted that Khalid Hariry and Oussama Boukhari have a direct interest in the agreement as they are representatives of Riyad Bank in the company's board.

The agreement has been signed through Riyad Company for Insurance Agency through paying an estimated total commission of SAR 3.46 million to the agency as per the agreement signed on 29 July 2013.

It is worth mentioning that Riyad Company for Insurance Agency is a subsidiary of Riyad Bank and one of the agencies of Al Alamiya for Cooperative Insurance Company, the statement said.