JEDDAH, 10 February 2007 — Saudi Reinsurance Company (Saudi Re), the first professional reinsurance company in the Kingdom, has appointed Saudi Hollandi Bank (SHB) as financial adviser and arranger for its initial public offering (IPO), which is expected to take place in the second quarter of this year, the company announced yesterday.
The agreement was signed yesterday at SHB’s headquarters in Riyadh by Mousa Al-Rubaian, the chairman of the founders committee of Saudi Re, Nouhad Taleb, the designated CEO of the company, Abdulelah Al-Shaikh, general manager of corporate banking group at SHB and Mark Hanson, head of corporate finance in SHB. Also present at the signing ceremony were Tom Lind, head of Structured Finance and Syndications, Khaled Al-Muammar, division manager and the bank’s corporate finance team.
Saudi Re will be the first professional reinsurance company in Saudi Arabia, which will provide Shariah compliant and traditional life, and non-life reinsurance products in most lines of businesses, said Al-Rubaian.
Reinsurance service is an arrangement in which an insurance company can enter into a contract with a reinsurer to indemnify the insurance company against all or a portion of the primary insurance risks that it has underwritten.“The company’s reinsurance business will include a variety of areas but will not be limited to fire, construction, marine cargo, marine hull, and general accidents,” Al-Rubaian said.
