Saudi Reinsurance Company (Saudi Re) has signed a contract with The Company for Cooperative Insurance (Tawuniya), to reinsure the compulsory Inherent Defects Insurance (IDI) pool.
Tawuniya was designated by the Insurance Authority as the new leader of the IDI programme from 24 June 2025. This role would last for a three-year term. The pool comprises 17 insurers in the kingdom.
Saudi Re said in a statement lodged on 29 June 2025 with the Saudi Exchange (Tadawul) that this new contract is expected to increase its reinsurance revenue by more than 5%, based on the results achieved in 2024. The statement added that the contract is expected to have an impact on the company's financial results during the 2025 financial year, stating that there are no related parties involved.
The company said that the reinsurance contract was signed following the transfer of the leadership of the pool to Tawuniya for a period of three years that started on 24 June.
The reinsurer has been the exclusive reinsurer of the pool since the mandatory scheme was launched in 2020.