Saudi Re will have a cautious asset management policy and intends to outsource this function to professional asset managers by providing them with Saudi Re's investment guidelines and liquidity needs. Investment guidelines will be drafted with the following objectives:
Investments are in line with regulatory authority’s guidelines on solvency margin requirements.
Investments are matched with Saudi Re’s liabilities in foreign currencies
Investments have sufficient liquidity for Saudi Re’s operations
Investments are tax efficient
Management expects that investment grade bonds and fixed deposits will be an important component of the Company’s overall asset allocation.
