Saudi bank to launch insurance arm

by David Masters

Story link: Saudi bank to launch insurance arm

Saudi Arabia’s Riyad Bank yesterday announced plans to launch a new insurance business.

The new company – named “The Global Company for Cooperative Insurance” – will be set up in conjunction with UK-based Royal & Sun Alliance, and will be partly floated on the Saudi stock exchange.

It will be launched with 200 million Saudi riyals ($53 million) capital, with Riyad bank owning a 30% share. Another 30% will be offered in a public subscription, subject to approval from the Saudi central bank and Capital Market Authority.

Riyad Bank’s deputy executive officer Sulieman al-Quweiz said the new company was part of the bank’s strategy of diversifying investment sources in financial services.

Saudi ministerial approval has been given to form the company.