Saudi Re, Tawuniya sign reinsurance contract for latent defects

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) signed today, June 29, a contract with The Company for Cooperative Insurance (Tawuniya), the lead insurer of the latent defects insurance (LDI) product, to reinsure the joint LDI program.

In a statement to Tadawul, Saudi Re said the contract is expected to boost its reinsurance revenues by over 5% of its total reinsurance revenues for 2024.

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The contract commenced on June 24, 2025, and extends until Dec. 31, 2025. It includes an automatic renewal clause for a three-year term starting from the contract's initiation date.

Saudi Re anticipates the financial impact of this agreement will be reflected in its 2025 financial results, noting that no related parties are involved in the deal.

According to Argaam’s data, Tawuniya announced last February its selection by the Insurance Authority (IA) to lead the insurance pool against the LDI product on behalf of the insurance sector, starting June 24, 2025, for three years, replacing Malath Cooperative Insurance Co.

Saudi Re reported reinsurance revenues of approximately SAR 1.13 billion in 2024. The 5% increase translates to an estimated additional revenue of SAR 56.6 million.