Mr. Resini Alresini, Deputy CEO of ReTech, appeared on Alekhbaria Channel last week to discuss the anticipated positive outcomes of implementing Circular No. 296. This circular mandates insurance companies to offer at least 30% of each reinsurance deal to the local market under the first right of refusal.
Key highlights from the interview include:
- Strengthening the Kingdom’s Position: Establishing Saudi Arabia as a leading regional hub for reinsurance.
- Enhancing Technical Capabilities: Elevating the expertise of companies operating in the Saudi market.
- Improving Pricing Adequacy: Achieving better risk performance due to the proximity of reinsurers to the risks they cover.
The interview also shed light on the latest Saudi insurance market data. Mr. Alresini compared performance metrics for Q3 and the first nine months of 2024 with the same periods in 2023, emphasizing notable improvements:
- Gross Written Premium (GWP): A 24% increase in Q3, reaching SAR 18.5 billion compared to SAR 14.9 billion in Q3 2023. A 16% rise was also noted when comparing the first nine months of 2024 to the same period in 2023.
- Net Income Growth: Insurance companies’ net income after Zakat and Tax grew from SAR 2.65 billion to SAR 3.45 billion, representing a 30% increase over the first nine months of 2024 compared to the same period in 2023.