Saudi Arabia's Riyad Bank said on Wednesday it planned to set up an insurance company with Britain's Royal & Sun Alliance which will be partly free-floated on the Saudi bourse. The new firm will have SR200 million capital ($53 million) and Riyad Bank will own around 30 percent directly and indirectly, a statement on the bourse website said. The new entity will be named “The Global Company for Cooperative Insurance”. The statement said 30 percent of the firm will be offered in a public subscription following central bank and Capital Market Authority approval. “This is part of diversifying the bank's investment sources in financial services,” Riyad Bank's deputy executive officer Sulieman Al-Quweiz said. Meanwhile, the Saudi Council of Ministers has announced the issuance of a Royal Decree that licensed Al-Alamiya to operate an insurance company in the Kingdom. Al-Alamiya has over 30 years experience in providing insurance solutions to clients in Saudi Arabia. This longevity, coupled with the International expertise and knowledge garnered through the RSA Group, has enabled Al-Alamiya to work in partnership with our customers and bring both international and local underwriting and claims expertise. Mark Cooper, chief executive officer, Al-Alamiya, said “the issue of the Royal Decree is a significant milestone for Al-Alamiya in Saudi Arabia.”
