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Saudi Reinsurance Company “Saudi Re” announces receiving an upgrade on its credit rating from Moodey’s from A3 to A2 with a stable outlook.     The rating upgrade of Saudi Re to A2 reflects strengthened business and financial profiles following Saudi Arabia’s Public Investment Fund’s acquisition of a significant minority stake in Saudi Re and the implementation of enhanced domestic cession regulations, which Saudi Re is well positioned to take advantage of to support its market position and growth prospects in Saudi Arabia. Moody’s noted that following the successful completion of the  transaction with PIF and divestment of its holding in Probitas, Saudi Re’s shareholders’ equity increased by 75% to approximately SAR 2 billion in January 2025, up from SAR 1.14 billion at end of 2023. The rating agency highlighted that the involvement of PIF enhances Saudi Re’s business profile and provides access to additional capital to support its expansion locally and internationally. Commenting on the rating upgrade by Moody’s , Ahmed Al-Jabr, the CEO of Saudi Re said “we are very pleased to receive this recognition of Saudi Re’s financial strength and competitive position which provides assurance to our investors, regulators, clients, partners and all stakeholders, and reinforces their confidence in Saudi Re’s credit worthiness, financial standing and strategic direction.”  According to Moody’s, despite potential challenges arising from macroeconomic uncertainty and financial markets volatility, Moody’s expects Saudi Re’s profitability to remain good over the next 12-18 months, supported by both underwriting performance and investment returns. Saudi Re’s good geographical mix along with the development of new products will positively contribute to the continued diversification, mitigating potential challenges. Earlier in March this year, Saudi Re announced recommendation to increase its capital by 46.6% to reach SAR 1.7 billion through a bonus share distribution.

Saudi Reinsurance Company (Saudi Re) and Saudi Housing Guarantee Services Company (Damanat) have signed a Memorandum of Understanding (MoU) that establishes a collaboration framework between the two parties with the objective of developing insurance and reinsurance solutions for the mortgage financing sector. The MoU paves the way to design innovative risk management solutions that support the growth and stability of the mortgage financing sector, the housing program, and the financial sector’s development. As part of the MoU, both companies will collaborate on the technical matters for insurance product development and reinsurance services, including pricing models, underwriting mechanisms, and claims management. This partnership also seeks to align with international investors’ expectations and foster Saudi-international collaborations to enhance risk management in the mortgage financing industry. Commenting on the agreement, Ahmed Al-Jabr, CEO of Saudi Re, emphasized that the MoU lays the foundation for a constructive partnership that aligns efforts for sustainable growth in the insurance and mortgage financing sectors. He expressed Saudi Re’s keenness to working with Damanat to develop innovative solutions that contribute to both industries. Meanwhile, Osama Al-Othman, CEO of Damanat, highlighted the importance of collaboration between national companies in reinforcing insurance as a key driver of financial stability in critical economic sectors. He noted that this MoU marks the beginning of a strategic partnership that aligns with Saudi Arabia’s Vision 2030. The agreement serves as a broad framework to define areas of collaboration between the two entities, with a focus on developing future initiatives and projects that advance mutual interests.

Saudi Reinsurance Company “Saudi Re” Announces that Moody’s has affirmed its rating at A3 Insurance Financial Strength Rating (IFSR) with a positive outlook. The financial rating of Saudi Re reflects its: 1- Strong brand and market position in Saudi Arabia as the sole Saudi professional reinsurer as well as a growing presence in its target markets of the Middle East, Asia and Africa. 2- Preferential position in Saudi market due to a right of first refusal on a portion of premiums ceded by primary carriers in the Saudi market 3- Strong asset quality exemplified by its conservative investment portfolio. 4- Good capital adequacy, both in terms of capital levels and limited exposure to natural catastrophe risk. 5- Strong financial flexibility with non-existent leverage and good access to capital markets in Saudi Arabia given its listing on the Saudi stock exchange, and broad investor base. The positive outlook reflects Moody’s expectation that Saudi Re’s business and financial profiles are likely to improve materially over the next 12-18 months accompanied by increased capital and supported by a favorable operating environment and government initiatives to support growth of the local insurance industry. In addition, a strategic equity subscription agreement with the Public Investment Fund will further strengthen Saudi Re’s business and financial profile and support its plans to grow both locally and internationally.