RIYADH, (Reuters) – Saudi Arabia’s Riyad Bank 1010.SE 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 200 million Saudi riyals capital ($53 million) and Riyad Bank will own around 30 percent directly and indirectly, a statement on the bourse web site 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 was quoted as saying.