Bank AlJazira, Aljazira Takaful ink one-year bancassurance agreement

Logo of Bank AlJazira 

Bank AlJazira signed today, Sept. 26, a one-year bancassurance agreement with Aljazira Takaful Taawuni Co., according to a bourse filing.

Bancassurance is an arrangement between a bank and an insurance company allowing the latter to sell its products to the bank's client base. 

Under the contract, Bank AlJazira will provide marketing, distribution, and sale of “bank insurance” products of Aljazira Takaful to the bank’s customers.

Bank AlJazira indicated that it received the Saudi Central Bank’s (SAMA) approval on Aug. 15.

It is not possible to determine the contract’s value, as the value of the written premiums arising from the contract is related to the sales activity, which cannot be currently determined, the bank clarified.

The contract’s positive financial impact is expected to show on the bank’s financial performance for 2021-2022, starting with the signing of the contract.

The statement added that Bank AlJazira’s Vice-Chairman and Board Member, Abdul Majeed bin Ibrahim Al-Sultan, and Bank AlJazira’s Head of Retail Banking Group, Khalid bin Othman Al Othman, have indirect interest in this contract, in their capacities as Aljazira Takaful’s Chairman and Vice-Chairman, respectively.

Accordingly, Bank AlJazira affirmed that the contract was in the normal course of business and did not confer any preferential benefits.