The Council of Ministers Approves Saudi Reinsurance Company

08/11/2007 19:15



PR Newswire



AL KHOBAR, Saudi Arabia, November 8 /PRNewswire/ -- The Council of Ministers of Saudi Arabia, in the meeting of 5th November, has granted the approval for the establishment of the professional reinsurance company operating in the Kingdom of Saudi Arabia which will be incorporated under the name of Saudi Re, "E'ada".

This comes subsequent to the approval of 20 insurance
companies as at October 31 to operate under the new Saudi Insurance Law and the Implementing Regulations as issued by Saudi Arabian Monetary Agency (SAMA). With Gulf Corporation Council (GCC) reinsurance market of over US$3.3 billion and a Saudi reinsurance market of US$0. 7 billion, Saudi Arabia stands as one of the most important and major reinsurance market in the area with an outstanding growth potential.

Saudi Re will have a capital of a billion Saudi Riyals (US$267 million). According to the decision of SAMA it will offer 40% of its shares to the public after getting the regulatory approval from the Capital Market Authority (CMA). The Saudi Hollandi Bank was appointed by the company as financial advisor.

The establishment of the company was promoted by Ahmad Hamad Algosaibi & Brothers who are known to have established the first insurance company in Saudi Arabia in the early 1960's. Saud Abdulaziz Algosaibi the Managing Director of A. H. Algosaibi & Brothers has pointed out that Saudi Re establishment comes timely to serve the newly formed Saudi insurance companies and to provide them with the necessary reinsurance protection.

Mr. Mousa Al-Rubaian, Chairman of the Founders Committee has pointed out that the company would provide both treaty and facultative insurance coverage in most classes of business. Saudi Re's head quarter will be in Riyadh and it will operate, at the beginning, in the Saudi, GCC and other neighboring countries.

Mr. Al-Rubaian mentioned also that with experience, dedication and know-how of Mr. Nouhad Taleb, CEO of Saudi Re, who's a reinsurance veteran of around 25 years, the company intends to be a major regional player to be reckoned with. Mr. Taleb has already started selecting a team of reinsurance professionals who will form the foundation of the company. It also intends to recruit top ranking Saudi graduates, who will be trained in the reinsurance business to become the seeds of the long term aspiration of the company.

For further info you may contact:

Nouhad Taleb
ntaleb@saudi-re.com
Phone: +966-1-2795258
Fax: +966-1-2795101
Web site: http://www.saudi-re.com
For further info you may contact: Nouhad Taleb, ntaleb@saudi-re.com, Phone: +966-1-2795258, Fax: +966-1-2795101