Howden has received regulatory approval to establish a reinsurance operation in Saudi Arabia, marking its latest expansion in the Middle East.
The newly formed entity, Howden Re, Kingdom of Saudi Arabia (KSA), will be led by Motaz Bukhari as chief executive officer.
Bukhari brings 12 years of experience in the insurance sector. He previously held leadership positions at Marsh Guy Carpenter in Saudi Arabia, including the role of deputy CEO. His career also includes seven years of underwriting in property and energy at Arch, following an early career as an engineer at Saudi Aramco.
The new business will offer reinsurance brokerage services including treaty and facultative placements. It will also advise clients on how to apply data, analytics, and capital markets expertise within the Saudi market. Howden Re KSA also plans to partner with local businesses and invest in local talent as it grows its presence.
Saudi Arabia’s re/insurance market is undergoing structural transformation, with projections from Swiss Re indicating it will grow at a 5.2% compound annual rate through 2028. The market is expected to reach SR 83.7 billion (approximately $22.3 billion) by that time.
Non-life premiums are forecast to increase by about 6% in 2025, driven by population growth, expanding health and motor insurance needs, and economic diversification.
Regulatory changes have also played a role in shaping the reinsurance environment. Local cession requirements have increased, mandating that insurers retain a larger share of premiums within the Kingdom.
The minimum threshold was raised from 20% in 2023 to 30% by 2025, creating new opportunities for domestic and regionally based reinsurers to support national retention strategies and contribute to market stability.
David Howden (pictured), CEO of the Howden Group, said the company is launching in a country he described as one of the fastest growing economies in the G20 with a significant focus on insurance.
“We now look forward to turbocharging our efforts – building a long-term commitment with our Saudi partners, providing innovative solutions to the local market, and a fresh alternative for home-grown talent,” Howden said.
Richard Mockett, CEO for Howden Middle East and Africa, said the pace of development in Saudi Arabia presents a significant opportunity for the insurance and reinsurance sector to contribute to the Kingdom’s broader initiatives.
“Under Motaz’s leadership and guidance, we are confident that Howden will make a huge contribution to Saudi Arabia’s dynamic and rapidly evolving re/insurance sector,” Mockett said.
The Saudi market entry also follows a broader growth phase for Howden globally. The firm is currently advancing a deal to acquire US-based brokerage Risk Strategies, valued at around US$10 billion.
That potential acquisition could set the stage for an initial public offering, with some estimates valuing the combined entity near US$30 billion.
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