Al Etihad, Al Rajhi Bank in bancassurance partnership

Al Etihad Cooperative Insurance Co. signed last Thursday, Jan. 9, a contract with Al Rajhi Bank to practice banking insurance business and provide quotes for comprehensive insurance on leased vehicles under the “Lease with a Promise to Own” program.

According to a Tadawul statement, the one-year contract provided quotes for insurance coverage on private vehicles owned by the bank and rented to its customers under the “Lease with a Promise to Own” program, subject to the terms and conditions outlined within the insurance policy.

The agreement value and its financial impact cannot be precisely quantified due to the fluctuating nature of monthly insurance applications.

Based on current projections, the total annual contract value is expected to exceed 5% of the insurance company's 2023 premiums, according to the latest published annual financial statements for 2023.

Al Etihad anticipated the financial impact of this agreement to appear on its financial performance starting from the first quarter of 2025, noting that there are no related parties.