Alinma Bank Signs Founders Agreement to Establish Tokio Marine Saudi Arabia

Alinma Bank and the co-founders of Tokio Marine (under formation) – Tokio Marine & Nichido Fire Insurance Co. Ltd, SABIC Industrial Investments Co. Ltd, Saudi Establishment for Trade and Distribution, Sheikh Abdullah Ben Mohammed Ben Abdul Aziz Al Romaizan, and Geant Saudi Ltd – signed an agreement on Wednesday, March 23, 2011 (18 Rabia Thani 1432), at the head office of Alinma Bank in Riyadh, to establish a Takaful insurance company with share capital of SAR 200,000,000 (two hundred million Saudi Riyals).

Speaking on the occasion, Mr. Abdulmohsen Al-Fares, the CEO of Alinma Bank, said that the agreement represents an extension of the bank’s strategic plans, which aim to fulfill the needs of its partners by providing them with innovative, Shariah-compliant, financial services and solutions, such as the Takaful products to be introduced through the strategic partnership. The new company will launch its business after finalizing establishment procedures and obtaining necessary regulatory approvals. Once established, the company will offer 30% of its shares for public subscription.

Mr. Al-Fares also explained that rapidly growing demand for Shariah-compliant insurance products and the growing needs of the Saudi market in general, had encouraged Alinma to enter into strategic partnership with one of the world’s major insurance companies, which brings to the table great expertise in the field of cooperative insurance. He further said that the partnership aims to provide professional, ethical insurance solutions to both retail and corporate clients.

It is worth mentioning that Tokio Marine Holdings, Inc. is a leader in the field of insurance, with particular Takaful expertise through its direct “Takaful” operations in major Islamic countries such as Saudi Arabia, Malaysia, Indonesia and Egypt. The group also owns a “re-Takaful” company in Singapore and carries out strategic Takaful R&D functions for the entire group through its Takaful center of excellence based in Dubai, UAE.