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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.

• PIF acquires 23.08% stake in Saudi Reinsurance Company by way of a capital increase and subscription to new shares• The investment aims to enable the company to scale up domestic capacity to meet rapid local growth and strengthen the Saudi insurance sector• PIF’s investment reinforces Saudi Reinsurance Company’s position as the national reinsurer, further strengthening its presence regionally and globally PIF has acquired a 23.08% stake in Saudi Reinsurance Company (Saudi Re) by way of a capital increase and subscription to new shares, with the suspension of preemptive rights in accordance with Capital Market Authority regulations. PIF’s capital investment aims to enhance Saudi Re’s growth potential by adding to its financial capacity and further strengthen its credit rating. PIF’s capital investment also supports Saudi insurance firms by enabling Saudi Re to deliver high quality reinsurance, permitting Saudi insurance companies to manage risk more effectively. Insurers use reinsurance to provide adequate coverage to their policyholders and reduce earnings volatility. Saudi Re enables Saudi insurance firms to grow and innovate. The investment is expected to contribute to more reinsurance premiums staying within Saudi Arabia while also growing the local reinsurance sector, and allowing better coverage for commercial activities for both insurance firms and companies in general, making the economy as a whole more financially resilient. A better capitalized Saudi Re will be more able to meet rapid growth in demand, and devise new products, while having increased capacity to expand in domestic and global markets. Sultan Alsheikh, Head of Financial Institutions in MENA Investments at PIF, said: “By investing in Saudi Re, PIF is reinforcing a leading regional reinsurer and strengthening Saudi Arabia’s insurance sector, which is an essential component of sustainable economic growth. This enhances access to quality financial services for insurers and their policyholders, and strengthens the sector.” Ahmed Al-Jabr, CEO of Saudi Re, commented: “We are delighted to welcome PIF as a strategic investor and look forward to its role in enabling Saudi Re’s strategy and reinforcing its position as a national reinsurer, while further strengthening its presence regionally and globally. This investment will provide us with multiple benefits, including boosting our financial position and unlocking opportunities for expansion and growth.” Saudi Re is a leading MENA reinsurance company and holds an A-minus rating from S&P Global and an A3 rating from Moody’s. In the first nine months of 2024, Saudi Re’s total written premiums reached SAR 1.94 billion ($520 million). It achieved a compound annual growth rate of 17% over the five years up to the end of the 2023 financial year. The transaction secured regulatory consents and was approved by Saudi Re’s shareholders at an extraordinary general meeting.  

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.