1- The Company may accept the reinsurance business from insurance companies operating in the State or from abroad in accordance with the conditions stipulated in this chapter.

2. The accepted businesses shall be of the types and classes of insurance which it is licensed to practice in direct insurance.

3. The premiums of treaty and facultative reinsurance accepted by the insurance company inside and outside the State shall not exceed 49% (forty-nine percent) of the total underwritten premiums by the Company.

4. Exception from Sub-Article (3) of this Article, the Director General may issue a decision to allow exceeding the percentage stated in the said Sub-Article,according to the following conditions:

A. The extent of technical balance to the Company’s portfolio.

B. Assessing the soundness of the Company’s financial position.

C. The extent of the Company meeting its obligations in terms of insurance and reinsurance.

5. The foreign insurance companies licensed and registered to operate in thestate, which transact the reinsurance business, are subject to this article.