UAE: DIFC grants captive insurance licence to mining and metals group
Source: Middle East Insurance Review | Apr 2023
Dubai International Financial Centre (DIFC) has granted a captive insurance licence to Ma’aden, the largest multi-commodity mining and metals company in the Middle East, and one of the top five largest mining companies in the world based on market capitalisation.
In a statement, the DIFC said the captive licence will provide Ma’aden with financial, strategic and operational benefits. By forming its own insurance company to protect against its unique business risks, Ma’aden can manage difficult-to-insure risk exposures, cover gaps in its risk management programme and capture profitable premiums that would otherwise be paid to commercial insurers.
The licence will help Ma’aden manage retention and deductibles associated with traditional risk transfer programmes and provide better protection against catastrophic losses and risks.
Riyadh-headquartered Ma’aden, a state-owned corporation, is among the fastest-growing mining companies in the world, with 17 mines and sites and 6,000 direct employees. Ma’aden is developing the mining industry in alignment with Saudi Arabia’s Vision 2030 and aims to be a role model in responsible and sustainable operations.
Establishing a captive at the DIFC gives Ma’aden a strategic location where it can convene board meetings, and access the DIFC’s reinsurance market. It is also close to the group’s headquarters in Saudi Arabia, the DIFC said.
Ma’aden is the first company to which the DIFC has granted a captive licence since the Dubai Financial Services Authority issued a solvency framework in April 2021 specifically for captives. M