Al Etihad, Al Rajhi Bank forge bancassurance partnership

Al Etihad Cooperative Insurance Co. signed a one-year agreement on Jan. 9 with Al Rajhi Bank to provide bancassurance services, including comprehensive insurance quotes for vehicles leased under the bank’s “Lease with a Promise to Own” program.

 

According to a Tadawul statement, the contract entails offering insurance coverage for private vehicles owned by the bank and leased to its customers. The agreement is subject to the terms and conditions outlined in the insurance policy.

 

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The financial impact and overall value of the contract cannot be precisely determined, given the variable nature of monthly insurance applications, the insurer said.

 

However, the total annual value of the agreement is expected to exceed 5% of Al Etihad’s premiums, based on the company’s most recent financial statements for 2023.

 

Al Etihad expects the agreement to positively impact its financial performance starting in the first quarter of 2025. The company confirmed that no related parties are involved in the deal.