Saudi Arabia bans insurance and re-insurance activities within the same firm

The Saudi Arabian Monetary Agency (SAMA) has prohibited combining insurance and reinsurance brokerage activities in the same company, effective immediately, it said in a statement on Thursday.

The agency said it had taken the decision to increase the stability of the insurance sector, boost its contribution to national economic growth and reduce "wrong practices" in the industry.

Companies that currently combine both activities have one year to implement the decision, and must give SAMA their plans to change within three months. (Reporting By Ahmed Tolba; Writing by Lisa Barrington; Editing by Jan Harvey)