Lockton Goes All-In on Saudi Arabia with Reinsurance License

RIYADH, Saudi Arabia – April 30, 2026 – Lockton, the world's largest privately held insurance brokerage, has solidified its strategic position in the Middle East by securing a reinsurance license in the Kingdom of Saudi Arabia. The move, announced today, completes the firm's service offering in the nation and signals a deep commitment to one of the world's most rapidly transforming economies.

In a concurrent move underscoring its focus on local expertise, Lockton has appointed veteran insurance executive Mohammed Al Rowais as Chief Executive Officer of its new reinsurance operation. This expansion is not merely a geographical footprint extension; it represents a calculated entry into a market supercharged by the ambitious Vision 2030 agenda, positioning Lockton to provide end-to-end risk solutions as the Kingdom undergoes unprecedented economic diversification.

A Full-Spectrum Strategy in a Shifting Market

This reinsurance license is the final piece of a strategic puzzle for Lockton in Saudi Arabia. It follows the firm's recent acquisition of a direct retail insurance license and the appointment of Mohammad Al Abdul Jabbar as CEO of that business. Together, these licenses empower Lockton to operate as a full-service brokerage, offering everything from direct insurance solutions for businesses to complex reinsurance programs for local insurance carriers. This comprehensive capability sets the stage for significant competition with established global players like Aon, Marsh, and WTW, which already have a presence in the region.

The firm's strategy hinges on integrating its global capabilities with deep local insight. By establishing a robust on-the-ground presence for both direct and reinsurance business, Lockton aims to offer a seamless service chain. This allows it to support local insurers with facultative placements for large, complex risks—such as in energy and construction—and with treaty reinsurance programs that cover entire portfolios of risk.

Ata Khatib, Chairman of Lockton Middle East and North Africa, emphasized this integrated approach. "Our priority is delivering locally led reinsurance solutions that combine global expertise with market-specific insight and that meet the evolving needs of clients in Saudi Arabia," he stated. "Mohammed's experience and leadership will help us build the capabilities needed to offer end-to-end support, from complex facultative placements to treaty solutions, ensuring clients have access to the best advice and execution where it matters most."

Chris Brown, CEO of Lockton International, echoed this sentiment, highlighting the strategic importance of physical proximity to clients. "This license strengthens our offering and ensures we are meeting clients where they need us, in Saudi Arabia and beyond, with the combined reach of Lockton and the specialist capabilities of our Lockton Re (treaty) business," Brown commented. "Proximity to clients is at the heart of our strategy and this expansion reflects our commitment to being there for them as their risk and insurance needs evolve."

Local Leadership for Global Ambitions

The appointment of Mohammed Al Rowais is a cornerstone of Lockton's Saudi strategy. With over 15 years of experience in senior roles across the Saudi insurance market, Al Rowais brings not just a wealth of operational knowledge but also significant influence. His membership on the Kingdom of Saudi Arabia's Insurance Authority's General Insurance and Reinsurance Subcommittee places him at the center of the industry's regulatory evolution.

This blend of market acumen and regulatory insight is critical in a country where relationships and a nuanced understanding of the local business culture are paramount. By entrusting the new venture to a respected local leader, Lockton is signaling to the market that it intends to be an integrated partner rather than a remote foreign entity. This approach is vital for navigating the complexities of the Saudi market and building long-term trust with local insurance companies.

The focus will be on leveraging Lockton's global analytical tools and capital solutions to elevate the local market. Keith Harrison, International CEO of Lockton Re, noted the increasing importance of innovation. "Treaty (reinsurance) is increasingly about innovation, bringing analytics, capital solutions and agile program design to support growth and resilience," Harrison explained. "Under Mohammed's leadership, our Saudi platform will elevate how we deliver treaty solutions in the Kingdom, ensuring Lockton sets the standard for leadership and innovation in this critical market."

Fueling the Vision 2030 Economic Engine

Lockton's expansion is timed to coincide with the explosive growth of the Saudi insurance sector, a direct consequence of the Kingdom's Vision 2030 plan. This national transformation strategy aims to diversify the economy away from oil, fueling massive giga-projects like NEOM, Qiddiya, and the Red Sea Project. These multi-billion-dollar ventures in tourism, technology, and renewable energy create unprecedented demand for sophisticated risk management and insurance capacity.

The Saudi reinsurance market alone, valued at over $3.3 billion in 2025, is projected to surge to $5.2 billion by 2034. The broader insurance industry is forecast to see its gross written premiums climb from SAR 76.1 billion ($20.3 billion) in 2024 to SAR 129 billion by 2030. This growth is not only driven by mega-projects but also by new mandatory health and motor insurance regulations and a rising awareness of emerging risks like cybersecurity.

Lockton's new operation is tailored to meet these specific demands. The firm's ability to arrange complex facultative reinsurance for sectors like energy, construction, property, and financial lines, as well as its expertise in treaty programs supported by advanced analytics, directly addresses the needs of an economy building its future from the ground up. A robust reinsurance sector is the financial backbone that enables local insurers to take on the colossal risks associated with these nation-building projects, thereby attracting further investment and ensuring their viability.

Navigating a New Regulatory Frontier

While the opportunities are vast, so are the regulatory shifts. Lockton enters the market as the newly formed Saudi Insurance Authority (IA), established in late 2023, begins to reshape the industry's landscape. The IA's mandate is to enhance stability, protect policyholders, and drive innovation, and it is moving quickly to implement a modern, risk-based supervisory framework.

Key among these changes is a new local cession mandate, effective January 1, 2025, which requires local insurers to offer at least 30% of their reinsurance business to domestic reinsurers before seeking international capacity. Furthermore, all foreign reinsurers must be registered on a new digital platform by March 2026 to continue doing business in the Kingdom. While these rules aim to strengthen the domestic market, they also create new compliance challenges.

Here, Lockton's strategy of deep localization and expert leadership appears particularly shrewd. With Al Rowais's insight into the regulatory process, the firm is well-positioned to navigate these requirements and form strong partnerships with local carriers. The move also anticipates the planned implementation of a Risk-Based Capital (RBC) regime in 2027, a change that will favor sophisticated, well-capitalized players with advanced risk-modeling capabilities. Lockton's investment in Saudi Arabia is a clear bet that it can leverage its global expertise to thrive within this increasingly structured and dynamic regulatory environment, becoming an indispensable partner in the Kingdom's economic renaissance.