Saudi Re expects reinsurance revenue to rise over 5%

Saudi Reinsurance Co. (Saudi Re) expects reinsurance revenue from the Saudi market to exceed 5% of total revenue on the implementation of the new mechanism of reinsurance premium cession to the local market, as per the company’s 2023 financial statements.

 

This followed the Insurance Authority’s circular dated Nov. 15, 2024, on ceding at least 30% of all reinsurance treaties (proportional and non-proportional) to licensed reinsurance firms, Saudi Re said in a statement to Tadawul.

 

These firms are entitled to either approve or decline this cession, starting Jan. 1, 2025, according to a statement to Tadawul.

 

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Reinsurance will be outsourced, after the full utilization of the local market capacity in the Kingdom.

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The relevant financial impact will likely reflect as of Q1 2025, Saudi Re added.