This Code presents the general principles and standards that should be met by insurance companies, including branches of foreign insurance companies, and reinsurance companies licensed by SAMA to manage their investments.
The objective of This Code is to promote high standards of investment practices within the insurance industry in accordance with the best international practices.
This Code must be read in conjunction with the Law on Supervision of Cooperative Insurance Companies and its Implementing Regulations and other regulations and instructions issued by SAMA, particularly articles 21, 59, 60, 61, 62, and 65 The Risk Management Regulation, The Code of Corporate Governance, and The Outsourcing Regulation.
The term “Company” or "Companies" used in This Code is intended to include insurance and reinsurance companies.
The term “investment policy” used in This Code is intended to include any written document that governs the Company’s investment operations and the methods of managing its investment portfolio.
The term “investment activities” used in this code stands for providing consultation particularly on the company's investment policy, implementing the investment activities and transactions, managing asset allocations and custodian activities on behalf of the company.
The term “investment companies” used in this code stands for investment companies licensed by CMA handling all or part of the insurance and reinsurance's investment activities.
The term “ALM” used in this code stands for Asset Liability Management and is intended to include the ongoing process of formulating, implementing, monitoring and revising strategies related to assets and liabilities in order to achieve an organization's financial objectives, given the organization's risk tolerances and other constraints. The rest of the terms used in This Code shall have the same meaning as per article (1) of the Implementing Regulation and the terms included in the other regulations mentioned in article (3) of This Code.
This Code applies to insurance and reinsurance companies.