KSA
Mubasher TV
 Contact Us Advertising   العربية
KSA
TDWL Closed
26 April 08:55 AM

Saudi Re Announces Signing an Exclusive Reinsurance Contract with Malath Cooperative Insurance Company to Cover the Inherent Defects Coinsurance Program

SAUDI RE 8200 1.28% 17.44 0.22
Element List Explanation
Introduction Saudi Re is pleased to announce the signing of an exclusive reinsurance contract with Malath Insurance Company – Market leader, on behalf of Saudi Insurance industry - to provide reinsurance coverage on the Inherent Defects Coinsurance Program.
Date of Announcement of the Award 2020-08-08 Corresponding to 1441-12-18
Contract Subject Matter An exclusive reinsurance contract with Malath Cooperative Insurance Company to provide reinsurance coverage on the Inherent Defects Coinsurance Program for a duration of one year to be automatically renewed for additional four years.
Date of Signing the Contract 2020-08-08 Corresponding to 1441-12-18
Contract Value The value of the contract is expected to exceed 5% of the Saudi Re Gross Written Premium, with potential to increase based on the program execution phase and expansion of the geographical scope.
Contract Details Based on the contract, Saudi Re will provide reinsurance treaty protection, and additional Facultative protection for risks exceeding the treaty capacity. During the contact period, terms will be reviewed annually.
Contract Duration 1 year to be automatically renewed for four years.
Financial Impact and the Relevant Period The contract is expected to reflect positively on Saudi Re sales and financial performance, and will gradually impact the financial results of the company starting from the fourth quarter in 2020.
Related Parties There are no related parties involved.
Additional Information - By nature, IDI is a long-term (10-year) protection; therefore, it is a long tail business for the company. Hence, the company has arranged Retrocession protection to manage such risk.

- The contract value is estimated based initial estimates considering the gradual implementation of the program and expansion of the geographical scope.

Comments