Saudi Re sees over 5% rise in GWPs on reinsurance installment allocation mechanism

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Saudi Reinsurance Co. (Saudi Re) expected the application of the Saudi Central Bank’s (SAMA) new mechanism for allocating reinsurance installments to the local market to gradually increase gross written premiums (GWPs) by over 5% increase from the Saudi market, according to its 2021 financial results. 

A positive financial impact is likely to show on Q1 2023 financial results, the insurer added in a statement on Tadawul. 

This came following SAMA’s decision to begin the gradual application of the new mechanism starting with at least 20% in 2023, 25% in 2024 and 30% in 2025, for all reinsurance treaties (proportional and non-proportional) as of Jan. 1, 2023. The move aims to enhance the local reinsurance activities’ contribution to the local content with respect to risk coverage.