Saudi Reinsurance Company (Saudi Re) and Saudi Housing Guarantee Services Company (Damanat) have signed a memorandum of understanding (MoU) to collaborate on developing insurance and reinsurance solutions for the mortgage financing sector.
The agreement outlines a framework for cooperation in designing risk management solutions that support mortgage sector growth, the housing program, and the broader financial sector.
Under the MoU, Saudi Re and Damanat will work together on technical aspects of insurance product development and reinsurance services, including pricing models, underwriting mechanisms, and claims management.
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The partnership also aims to align with international investor expectations and foster Saudi-international collaborations to enhance risk management practices in the mortgage industry. The agreement also provides a broad framework for future collaboration, focusing on initiatives and projects that serve the interests of both companies.
Osama Al-Othman, CEO of Damanat, said cooperation between national companies plays a role in strengthening insurance as a driver of financial stability in key economic sectors.
The re/insurance segment in the country continues its growth trend in recent years, thanks in part to recent regulatory developments. In November, Saudi insurers forecasted improvements in their financial performance following the implementation of a new mechanism requiring a portion of reinsurance premiums to remain within the local market.
The Saudi Insurance Authority introduced the measure, which seeks to strengthen the role of domestic reinsurance firms in managing insurance risks within Saudi Arabia.
As for Saudi Re, the company also enjoyed a major boost with the announcement that Saudi Arabia’s Public Investment Fund (PIF) has completed the acquisition of a 23.08% stake in the firm.
According to PIF, the capital injection will enable Saudi Re to deliver more advanced reinsurance solutions and provide insurance companies with improved risk management capabilities.
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