Saudi's Alinma Bank and the Saudi arm of Tokio Marine have signed an agreement to set up an insurance firm with a capital of 200 million riyals ($53 million), the bank said.

The new insurance company will be 28.75 percent owned by Alinma while Tokio Marine and Nichido Fire Insurance Co will hold another 28.75 percent stake, a statement said.

Among other investors, Saudi Basic Industries Corp will hold a 5 percent stake in the insurance firm which will float a 30 percent stake in an initial public offering after regulatory approval, the statement said.

Saudi Arabia currently has 30 listed insurance firm, many of which have capital of around 100 million riyals. - Reuters