Chedid re: Strengthening its position in Mena

Country profile – Lebanon
Broker
Chedid Re:
Strengthening its position in MENA
From its base in Lebanon, Chedid Re is solidifying its presence in the Arab world under the leadership
of its recently-appointed Managing Director, Mr Jihad Ghanem.
M
r Jihad Ghanem’s appointment as Managing Director
of Chedid Re in May 2010 follows from the growth
of the company over the past few years and the investments of its holding company Chedid Capital, he tells
MiddleEast Insurance Review.
One of these investments is Chedid Capital’s joint venture
firm, SEIB Insurance and Reinsurance Co (SEIB). SEIB was
licensed by Qatar Financial Centre Regulatory Authority
last October.
“While Mr Farid Chedid remains as Chairman and CEO
of the group, I aim to manage a talented and professional
team that has greatly contributed to our success, achieving
the business plans that we all contributed to set together,
and continuing with the same vision and mission of Chedid
Re,” says Mr Ghanem, who joined the group in early 2004.
“The success story of our company was and will remain
the result of combined efforts of individuals who believed
in a dream, across all levels of our organisation.”
He adds that Chedid Re’s main aim is to continuously
develop the skills of the team, to share the responsibility
of upgrading the services and the reputation of the insurance industry in the Arab world, and to raise the industry’s
position to be on par with its counterparts in more mature
markets.
with our new licence and operations in Saudi Arabia…we
estimate that with the anticipated growing Saudi economy
and our dedication to this country, it will top our list in
terms of production.”
Chedid Re also anticipates robust growth in Qatar, Kuwait and the UAE. It is equally strengthening its presence in
North Africa and Egypt “which will improve our business
in those countries very soon and could change the split of
our portfolio in the coming three years,” he notes.
“We aim to solidify our presence in the Arab world
through different measures: opening local offices where
needed to start close to our customer base, writing new
lines of business, offering creative reinsurance solutions and
widening the scope of our services, just to name a few.”
Growth and competition
Chedid Re’s brokered premiums increased around 37% from
2008 to nearly US$185 million in 2009. It expects to reach a
figure close to $250 million in 2010. Asked about the slightly
lower growth rate, Mr Ghanem points out, acknowledging the effect of the financial crisis: “It is normal that in
percentage terms, you will notice a slight reduction in a
growing portfolio reaching certain maturity.” The brokerage, he adds, has been growing at a CAGR of more than
50% from 1999 to 2009, and aims to expand faster than the
average economic growth in the region.
Regional presence
The path is not smooth sailing. “Competition is still
The company’s portfolio is spread
reducing the margins for all players in the industry and
over all Arab countries in addition
daring in certain stages to cross red lines. This cannot be
to Cyprus, Greece, Turkey and Iran.
accepted anymore by certain capacity providers. We are
“In the past, it was normal to have
always ready to compete and to secure the best deal for
more than 50% of the portfolio
our clients while maintaining full transparency with all
originating from the GCC countries,
our partners and giving the right advice that will service
with a large chunk of that in Saudi
our clients in the long term. We will never be a short-term
Arabia and the UAE. We still concenor an opportunistic player in the region.
trate on those countries, especially
“Chedid Re started
in the Arab world and
will continue to service
“If we want this industry to move
this region as top priorto a higher step, all parties
ity, without jeopardising
should consider reviewing their
our relationships and
professional conduct and
dedicated service to our
their moral and social
clients or playing unfair
responsibilities
games with our reinsurers
towards the
– one of the main drivers
industry.”
behind our growth story.
Mr Jihad
If we want this indusGhanem
try to move to a higher
step, all parties should
consider reviewing their
professional conduct and
their moral and social responsibilities towards the
industry. We at Chedid Re will continue to lead
in this arena.”
44
Lebanon.indd 44
www.meinsurancereview.com
September 2010
23/8/2010 12:08:48 PM