Tokio Marine ties up with Saudi firms on insurance

Japan's Tokio Marine Holding has teamed up with Saudi Arabia's Alinma bank and Saudi Basic Industries Corp to set up an insurance firm in the kingdom's crowded but under tapped market.

Alinma Bank said it and Tokio Marine would equally share 57.5 percent of the new cooperative insurance firm's $53.3 million capital under a memorandum of understanding signed on Wednesday.

The new insurance firm will raise 30 percent of the capital from an initial public offering and the remaining 12.5 percent would be held by other partners including Saudi Basic Industries Corp, Alinma said in a statement. It did not elaborate.

The Saudi central bank has authorised some 30 new insurance firms to be set up over the last three years to unlock the sector's growth potential and increase competitiveness.

Almost all of these new firms have already sold shares to the public which raises pressure on them to deliver profits although many of them had to wait for months after their listing before obtaining full authorization to start commercial activity.

Saudi Arabia is one of the least insured areas in the world partly due to a belief among some Muslims that buying an insurance policy could indicate a lack of religious faith. (Reuters)

Related:

Market Performance

Saudi Basic Industries Corporation
82.75
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Login

All fields marked with * are required and must be completed prior to submission.

Enter your email and password

Further reading

Features & Analysis
Saudi Arabia, other issuers gear up as Gulf bond crush looms

Saudi Arabia, other issuers gear up as Gulf bond crush looms

Cash-strapped region gears up for one of its heaviest-ever periods...

Saudi central bank fights to curb money rate rise

Saudi central bank fights to curb money rate rise

Commercial bankers say more radical steps may be needed to fight...

Are the troubles easing for Saudi construction giant Binladin?

Are the troubles easing for Saudi construction giant Binladin?

Gulf kingdom's biggest builder appears to have pulled back from...

Most Discussed
sponsoredTracking