An overall two percent penetration in Saudi Arabia's insurance is attracting investors to invest in the sector, said a high-ranking official of a company that initiated procedures to receive Saudi license. Currently Saudi Arabia's spending in overall insurance amounted to an average SR400 to SR450 per person, which is very low compared with other countries in the region, he said. The cooperative health insurance topped the list of spending with 44 percent. While the general insurance including motor vehicles stood at 51 percent, and savings and protection amounted to five percent, said Samer Kanj, general manager of Buruj Cooperative Insurance Company that has recently covered 40 percent of its SR130 million paid up capital by floating initial public offering (IPO). He said the company is still in the process of fulfilling formalities required by Ministry of Trade, Saudi Arabian Monetary Agency (SAMA) and Capital Market Authority (CMA), he said. “However, of the SR130 million paid up capital we have covered 40 percent of the amount through floating initial public offering (IPO), a requirement to receive license from the Saudi authorities,” he said. “We hope to start our operation in the first quarter of 2010 and optimistic for a major market share of the Saudi market,” he said. In the first general assembly meeting held on Tuesday in Riyadh Buruj Cooperative Insurance appointed a 10-member board of directors, approved pre-operation expense budget and appointed the external auditors, he said. The meeting also ensured that the initial public offering covered the total capital of the company, 40 percent through IPO and 60 percent investment through founders, he said. The meeting also approved the final statements of the company's main system while assigning the board of directors for a three-year period, he said. The board of directors include Yasser Youssef Mohammed Naghi, Khaled Saud Abdel Aziz Almohsen, Raafat Atiah Hassan Al Salamoni, Tarek Abel Wahab Moussa Alsahhaf, Ibrahim Mohammed Ibrahim Baterji, Adel Ali Hassan Alsayed, Abdel Aziz Fahd Mohammed Alrashed, Ziad Bassam Mohammed Albassam, Ammar Ahmed Saleh Shata, Mohammed Hamad Mohammed Abou Ali.
