Chedid Re, a Cyprus-based reinsurance broker which saw a 40% jump in the premium income handled last year to US$70 million, is aiming to further expand its regional base with plans to set up more offices in the Middle East. Mr. Habib Jaalouk, Director of Chedid Re, said that the company has already applied to set up offices in Saudi Arabia and in Qatar and is considering setting up in DIFC as well.

He said: “Over time, we are aiming to be a major international player too”. Founded in 1998 in Cyprus, Chedid Re has two regional offices in Greece and Beirut and has, over the years, gained wide recognition with a strong and regular client base. Mr. Jaalouk said: “We expect to receive a license to operate in the Saudi market by the end of this year. We have started the license application process in Qatar. Expansion in Dubai is also on the cards.”

The expansion is part of the company’s plans to become a major regional player in every Mena market and to better cater for the needs of their regional clients. These plans come in tandem with the significant economic growth rates witnessed in the region. He said the big infrastructure projects in the GCC countries will create demand for insurance services. The abundant financial liquidity from these countries is also being invested in countries like Egypt, Syria and other Arab and North African countries. These investments would, in turn, lead to a surge in the insurance industry growth.

Prompt and Immediate Attention
Chedid Re provides a wide range of reinsurance brokering services, including retrocession treaties and facultative support on different segments and lines of business. It currently offers comprehensive insurance and reinsurance solutions to over 100 direct companies in the Middle East, Africa, and Europe. He said: “Our competitive edge comes from the quality of service rendered to our clients regardless of their size of operations in the market. This strategy works because the international reinsurers usually prefer to write big treaty business only. The company’s main focus is on meeting the needs of clients with prompt attention.

He believes that their success has come from their frequent and continuous visits to the Arab markets which had enabled them to build good business relationships and become “well aware” of the markets’ needs.

He said: “The Company has an efficient cadre of technical brokers from different insurance specializations ready to give a quick reply to clients within 24 hours.” Aside from its inside knowledge of the clients and the markets, Chedid Re prides itself in maintaining very strong relationships with both regional and international reinsurers. This is necessary to help provide direct insurance companies with the proper reinsurance protection they require.

The Differentiation Factor
With this strong linkage to both cedants and reinsurers, Chedid Re is confident of facing competition head on. He said: “With our highly professional and well-managed team, we were able to compete with some of the big brokers and managed to not only retain our client base, but also add to it as well.” He also believes that it will be tough for newcomers to find a foothold in the market. The broking industry in the Arab world is still new and the Arab companies still look for a trusted name that they have links with.

He said: “In order to compete in reinsurance broking, you have to be well-established, have excellent business relations, and have an efficient broking team with well-known faces and experienced names. It is the human capital that makes a difference in broker differentiation,” he added.