Saudi Re expects increase in written premiums by more than 5% after applying mechanism of assigning reinsurance premiums to local market

Saudi Reinsurance “Saudi Re” announced on Thursday its expectations that the implementation of the mechanism of assigning reinsurance premiums to the local market will gradually result in a rate starting from at least 20% for the year 2023 and at least 25% for the year 2024 and at least 30% for the year 2025 when negotiating the conclusion of Reinsurance Treaties (proportional and non-proportional) starting from 01/01/2023, an increase in the company’s written premiums from the Saudi market by more than 5% of the total written premiums (according to the results of the fiscal year 2021).
The company said in a statement on Tadawul on Thursday that the positive financial impact on the financial results is expected to appear as of the first quarter of the fiscal year 2023.
Reference to the circular of the Saudi Central Bank (SAMA) dated 26/10/2022 in respect of the implementation of the new mechanism for the Reinsurance Cession to the Local Reinsurance Market, with a gradual cession of at least 20% in 2023, 25% in 2024 and 30% in 2025, for all Reinsurance Treaties (proportional and non-proportional) with the effect of 01/01/2023, with the objective of increasing the insurance sector’s contribution to the local content in covering the risks.