MedGulf, SEC ink SAR 570 mln health insurance services contract

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) has signed a contract with Saudi Electricity Co. (SEC) at a total value exceeding SAR 570 million, the insurer said in a bourse filing.

Under the one-year contract, MedGulf will provide health insurance services to the company’s employees as well as their families.

The contract is forecast to account for 5 percent of the insurer’s revenue, as per financial statements for FY17.

The related financial impact is expected to appear in earnings of FY19.

The contract is subject to the approval of the company’s general meeting.

SEC said the contract will unlikely impact its earnings as the health services cost SAR 517 million in 2017.

Najm bin Abdullah Al-Zaid, Vice Chairman at SEC and MedGulf, is a related party, however, he was granted no preferential privileges.