Saudi Reinsurance Company (Saudi Re) penned a reinsurance contract for surety insurance bonds coinsurance programme with Walaa Cooperative Insurance Company.

The two entities inked the agreement on 29 December 2024, according to a bourse disclosure.

The programme is a financial guarantee solution that aims to ensure contractors meet their contractual obligations on construction projects created for the Public Investment Fund’s (PIF) Development Companies.

The contract is expected to result in increasing Saudi Re’s revenue by more than 5% of the total reinsurance revenue based on 2023’s results. It is expected to have an impact on the company's financial results in 2025.

Meanwhile, the deal holds a 12-month tenor from 1 January 2025.

Last November, the Capital Market Authority (CMA) greenlighted Saudi Re’s capital hike through the issuance of shares with the suspension of preemptive rights.

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