Abu Dhabi: Al Khazna Insurance Company said on Saturday that it has acquired a 15 per cent stake in Saudi Arabia's Sanad for Co-operative Insurance and Reinsurance.
The deal includes nearly three million shares, which allows Al Khazna to have two members in Sanad's board - Ahmad Mohammad Al Rumaithi and Hamad Jassem Darwish.
Additionally, Mohammad Jassem, Al Khazan's director general, will serve as a member in Sanad's executive administration.
Sanad is preparing to offer new insurance covers in the Saudi market. "This is aimed at supporting the insurance sector in the kingdom and meeting the need of our clients in different fields," said Al Rumaithi.
He added that the partnership was a strategic step, which would clear the way for Al Khazna to enter promising insurance market services.
Saudi Arabia has seen strong growth in the insurance industry, and that was made possible through making health insurance obligatory for all expatriates. This type of insurance alone would serve seven million residents in the kingdom.
The sector's growth was further boasted as the government introduced new regulations that made vehicles insurance mandatory. The growing investments in different sectors have also contributed to the insurance market boom.
"We will make all of Al Khazna's expertise available to Sanad, and through our presence in the board of directors we will help Sanad maximise the benefits of its shareholders," said Al Rumaithi.
Sanad for Co-operative Insurance and Reinsurance was created as a public company in last July with a capital of 200 million Saudi riyals, divided into 20 million shares.
By Staff Reporter
© Gulf News 2008
