Al Alamiya inks one-year insurance deal with Riyad Bank

Al Alamiya for Cooperative Insurance Co. has signed a one-year agreement with Riyad Bank to provide insurance coverage on the bank’s mortgage program effective May 1, the insurer said in a statement to Tadawul on Sunday.

The deal is expected to have a positive financial impact on the company’s sales, as it is expected to generate SAR 23 million worth of gross written premiums.

The agreement was signed between Riyad Company for Insurance Agency (a subsidiary of Riyad Bank) and one of Al Alamiya’s agencies. The total commission will amount to SAR 3.5 million, according to a contract previously signed on July 29, 2013.

The bank is a related party, as Al Alamiya board member Khaled Hariri is on the board of directors of Riyad Company for Insurance Agency, a Riyad Bank subsidiary.

The agreement was signed according to usual market practices and there was no preferential treatment involved, the statement said.

Riyad Bank owns 19.92 percent of Al Alamiya, according to data compiled by Argaam.