Saudi Re signs reinsurance contract with Malath Insurance

Saudi Reinsurance Company (Saudi Re) has signed a reinsurance contract with Malath Insurance Company.

The agreement was signed on behalf of Saudi Insurance industry to provide reinsurance coverage on the Inherent Defects Coinsurance Program (IDI) for a duration of one year, and to be automatically renewed for additional four years.

Under the terms of the contract, Saudi Re will provide reinsurance treaty protection, and additional facultative protection for risks exceeding the treaty capacity.

Saudi Re expects the contract to reflect positively on its financial results starting from the fourth quarter of 2020.

The value of the contract is expected to exceed 5 percent of the Saudi Re gross written premium, with potential to increase based on the programme execution phase and expansion of the geographical scope.