Captive insurance is a risk financing mechanism that enables a company to self-insure against future losses. By creating a licensed insurance company, the insured can retain risk in-house, manage difficult-to-insure exposures, and bridge gaps in their risk management programme.
The DIFC's captive license offers Ma'aden significant financial, strategic, and operational advantages. By establishing its own insurance company to cover its unique business risks, Ma'aden can benefit from profitable premiums that would typically go to commercial insurers. Establishing a captive at DIFC gives Ma’aden a strategic location where it can convene board meetings, access the DIFC’s reinsurance market and which is close to its headquarters in Saudi Arabia.
Arif Amiri, CEO of DIFC Authority, said: “As the region’s insurance hub, which includes captives, DIFC is looking forward to supporting Ma'aden in achieving its growth goals and helping them better control risks and reduce costs.”
Yaser A Barri, Chairman of Ma’aden Captive, Ma’aden Re Limited, said: “We look forward to establishing our presence in DIFC with the new captive licence. The Centre’s strategic location, modern business environment, and world-class services will support Ma’aden in achieving our growth strategy.”
With 17 mines and sites, and over 6,000 direct employees, Ma'aden is committed to developing the mining industry in line with Saudi Arabia's Vision 2030 and implementing responsible and sustainable practices.