Saudi Re inks reinsurance contract with Walaa Insurance

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) signed today, Dec. 29, a reinsurance contract for the Surety Insurance Bonds Coinsurance Program with Walaa Cooperative Insurance Co. for 12 months starting from Jan. 1, 2025.

In a statement to Tadawul, the company said that the program is deemed a financial guarantee solution that aims to ensure contractors meet their contractual obligations on construction projects developed for the Public Investment Fund’s (PIF) development companies.

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The contract is expected to result in increasing the company’s reinsurance revenue by more than 5% of the total (based on financial results for 2023).

The financial impact of this contract, according to Saudi Re, is expected to be reflected its financial results in 2025. It noted that there are no related parties to the deal.

According to data available to Argaam, earlier today, Walaa Insurance announced receiving the final approval from the Insurance Authority (IA) to market and sell a new insurance product, surety bonds.

The company said that this new product is developed by the Saudi insurance sector in collaboration with the PIF and the IA as a financial guarantee solution that aims to ensure contractual obligations for construction projects being developed by PIF companies are met.