Tawuniya expects revenue surge under local reinsurance premium scheme

Logo of The Company for Cooperative Insurance (Tawuniya) 

The Company for Cooperative Insurance (Tawuniya) anticipates increased revenue from the Saudi market following the implementation of a new mechanism for allocating reinsurance premiums locally, as reflected in its upcoming 2024 financial results.

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In a statement to Tadawul, the company said this development follows an Insurance Authority (IA) circular dated November 14, 2024.

The circular requires the allocation of at least 30% of reinsurance premiums locally for 2025. This applies to all agreements related to treaty reinsurance during negotiations and to each risk associated with facultative reinsurance (both proportional and non-proportional), effective Jan. 1, 2025.

The initiative aims to boost local reinsurance activity's role in covering insurance risks within the Kingdom.

Tawuniya expects the positive financial impact to appear in its 2025 financial results.