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The Company is retrocede a portion of the risks it assumes under its own reinsurance operations to reduce its exposure to losses, stabilize its earnings and protect its capital resources. To realize this Saudi Re will establish a performing retrocession program with various leading international and regional reinsurers. Retrocession will be done on the following principles:
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Sufficient operating capacity
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Placement with securities that have a rating of BBB or above |
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High retention ratios within the risk tolerance of Saudi Re |
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Sufficient cover for the accumulation and catastrophic exposure |
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Writing business within the Company's retrocession and risk tolerance framework |
| Saudi Re's retrocession policy aims to gradually increase the retention levels of the Company while keeping retrocession costs to a minimum. |
