Saudi Re has announced the signing of a reinsurance contract with Walaa Cooperative Insurance Company for the Surety Insurance Bonds Coinsurance Program.
This program provides financial guarantees to ensure contractors meet their obligations on construction projects developed by the Public Investment Fund’s (PIF) Development Companies.
The contract spans 12 Gregorian months, starting from 01/07/1446H, and is projected to boost Saudi Re’s reinsurance revenue by over 5%, based on 2023 financial results. It is also expected to impact the company’s financial results in 2025.
The agreement follows Walaa receiving final approval from the Insurance Authority to market and sell the new Surety Bonds product, developed by the Saudi Insurance Industry in collaboration with PIF and the Insurance Authority.
Walaa will market and manage this product as the co-insurance pool leader over a five-year period, issuing Surety Bonds to qualified contractors working on projects developed by PIF’s Development Companies.
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