• Annual Report 2021

العربية | ENGLISH

ESG REPORT

Our Sustainability Performance

11.1 Our Sustainability Policy

Saudi Re has embedded sustainability policies in its core Vision and Mission. Our concept of sustainability extends far beyond Saudi Re, its clients, and its employees. It encompasses preservation of the environment, as well as enhancing the lives of citizens by way of financial and social inclusion. We incorporate core sustainability principles into our policies, procedures, and practices. Protecting the environment is also in harmony with our Islamic values.

Saudi Re also practices sustainable investment, which emphasizes the importance of incorporating ESG considerations into its investment practices. We avoid investments that could potentially be harmful to the environment and society. Our customer relations are guided by Saudi Re’s Code of Professional Conduct and Ethics, which ensures we treat clients fairly and ethically. Our HR practices too are geared to promote fair treatment of employees, diversity and equal opportunity. Saudi Re also conducts a wide range of CSR programs to uplift the social and economic conditions of the communities where we operate.

11. 2 Our national contribution

With our commitment to national development, Saudi Re is dedicated whole heartedly to the actualization of the Saudi Vision 2030. Economic growth as a centerpiece for our plan means that opportunities are created for Saudi citizens, by providing training and development; women are empowered to be appointed to senior positions. Further, we prioritized the Saudization of Saudi Re by committing to recruit Saudi Citizens and giving them the skills required to be professionals in the insurance and reinsurance industry. Moreover, Saudi Re intends to increase the Saudization ratio annually.

2021 2020 2019 2018
Saudization rate among the total workforce (%) 75 71 71 64
Saudization rate of Senior Management (%) 83 77 57 43
Total number of National employees (FTE) 54 46 45 39

We prioritized the Saudization of Saudi Re by committing to recruit Saudi Citizens and giving them the skills required to be professionals in the insurance and reinsurance industry.

Contribution to the Saudi economy and society

Area Contribution  Highlights
Local content  Maximize the local content by retention of reinsurance premium within the Kingdom and increasing its value in the local economy. Saudi Re retained around SR 2.1 billion (representing an average of 8% of the Saudi reinsurance market) within the Saudi market over the period 2016-2020.
Service export Contribution to the non-oil GDP by exporting reinsurance services to the international market.  Represent the Kingdom in the international arena. Saudi Re has 57% international business of its total portfolio and has a presence in 50 markets.
Training and education We offer job rotations for employees in order to keep them well versed in the workings of Saudi Re. Both soft and technical training is conducted alongside in-house workshops to ensure that all employees are qualified sufficiently. Employees are all subject to a minimum of six hours of training.

Support for employees is expressed through sponsorship grants from the Ministry of Human Resources and Social Development, Saudi Central Bank, TAQAT, Doroob, and The Financial Academy. Further support from Saudi Re ensures that employees are recognized for their time and effort to earn certificates, as well as an investment of SR 311,430 over the year for the training of said employees.
Youth development and nationalization With an internship program targeted at the Saudi youth, Saudi Re offers young students/graduates the skills and experience they need to become professionals in insurance and reinsurance.

Cooperative training is conducted to give students the practical knowledge they need, Summer “Saifi” training is conducted to give the students a general overview of the business, and the Tamheer program is aimed at providing graduates the practical experience they need to enter the market.

Saudi youths are chosen with priority to increase the Saudization ratio within Saudi Re.
Employees less than 30 years of age that are employed by Saudi Re: 21% of total workforce.
Product development and innovation  Contribute to developing professional standards and practices and creating innovative solutions leading to wider adoption of insurance and offering first-class protection of national assets. Engagement in market development initiatives. 

Active participation in the industry committees.

Lead reinsurer of the Inherent Defect Insurance program; a compulsory insurance that will provide protection against structural damages of commercial and private residential construction projects, and will serve to improve the quality of buildings and support the governmental housing efforts.

11.3 Sustainable procurement

At Saudi Re, we believe in an ethical supply chain, where our procurement process is executed sustainably and responsibly. Our transparent selection process ensures that all business partners are well evaluated and documented ahead of any transaction.

In 2021, we partnered with RMS – a leading catastrophe risk solutions company – in order to adopt RMS models and services for a more comprehensive view across the Asian market. The agreement will enable Saudi Re to enhance risk analysis across multiple geographies including India, China, and the Philippines.

During the year, we also adopted the following measures to strengthen the supply chain:

  • Introduced the Digital Signature Project to ensure authentication, integrity, and non-reproduction of documents resulting in reduced usage of paper.
  • Legal identity verified by checking the Unified National Number (UNN) and regulatory license validity through automated solutions.
  • Applied credit rating assessment for reinsurance business partners.
  • Enhanced automation of the procurement process and integration with related functions.
  • Improved supplier screening and assessment criteria.
  • Offered cybersecurity awareness to suppliers.

In order to ensure these processes complement our sustainability goals, we also assess the impact of the purchased products from a sustainability perspective, focus on local content development, and measurement of local spending. By sourcing locally, we are not only able to find reliable partners, but also support the Saudi Vision 2030 by promoting the development of our economy.

11.4 Corporate Governance

As a leading reinsurance firm, Saudi Re is dedicated to the highest standards of corporate governance. In tandem with national and international regulations, our aim is to build an environment that promotes trust, transparency, and accountability; fostering long-term investment, financial stability and business integrity within the economy. The system of governance that has been developed exists to ensure the protection of the rights of shareholders and stakeholders; emphasizing on the competency and accountability of the Board and the Executive Management Team.

Transparency and disclosure are also embraced by our corporate governance policies. Communication is done through our website, the Saudi Stock Exchange – Tadawul website, and our dedicated Investor Relations app where we provide full disclosure of our corporate governance. All important developments are shared with our shareholders. Our highly professional Investor Relations Department ensures this by working tirelessly to broadcast key pieces of information through meetings and inquiries. This year saw 11 investor meetings and five investor conferences.

As a body that implements rigorous controls, the Board of Directors oversees financial audits and reporting, internal control, and the legal requirements of Saudi Re. The Board consists of five non-executive, three independent, and one executive Board Member; and is subject to a performance evaluation every three years.

The policies that govern our activities are:

  • Our Corporate Governance Policy
  • Our Conflict-of-Interest Policy
  • Out Whistleblowing Policy
  • Nomination and selection criteria for Board and Board subcommittee members
  • The rules and procedures of the subcommittees
  • Our Remuneration and Compensation Policy for Board members, subcommittee members, and executive management

11.5 Our Business Ethics and Compliance

The Saudi Re workforce is obligated to adhere to our Code of Professional Conduct and Ethics which requires our employees to behave according to the code, and conduct themselves in an ethical manner. The goal of this code is to bolster an already rigorous anti-corruption and anti-bribery culture, within the Company. These codes are communicated to the employees by the Compliance and Legal Department, who host awareness sessions and mandatory training on gifts and hospitality, reporting misconduct, and confidentiality. The policies that determine the ethical nature of Saudi Re are:

  • Anti-Money Laundering and Combating Terrorism Financing Policy and Procedures
  • Anti-Fraud Committee Charter
  • Anti-Fraud Policy
  • Clients Acceptance Policy
  • Compliance Charter
  • Compliance Policy
  • Insider Trading Prevention Policy
  • The Code of Professional Conduct and Ethics
  • Reporting Non-Compliant Practices “Whistleblowing” Policy

An introduction of a whistleblowing policy meant that stakeholders and employees can observe and report on any violations such as corruption, embezzlement, fraud, inappropriate behavior, abuse of authority, obtaining underserved benefits and rewards, and the disclosure of confidential information.

Our record on ethical behavior

2021 2020 2019 2018
Employees dismissed and/or disciplined for corruption (Nos.) 0 0 0 0
Percentage of operations assessed for risks related to corruption (%) 0 0 0 0
Percentage of employees trained on risks related to corruption (%) 97 90 85 70
Percentage of employees trained on risks related to money laundering and financial crime (%) 95 93 91 88

Based on a risk-based audit, the Saudi Re Internal Audit Department will review internal control annually. The dedicated functions of Compliance and Risk Management educate employees, set standards, and ensure compliance within the applicable regulations. As we strive to be the market-leader in practices, we also strive to manage the risks that are inherent to business lines.

Non-compliance with laws and regulations

2021 2020 2019 2018
Total incidents of non-compliance with laws and regulations (Nos.) 1 1 0 0
Total number of non-monetary sanctions (Nos.) 0 0 0 0
Total amount of legal and statutory fines and settlements (SR) 0 0 0 0

11.6 Our Financial Performance

We are working towards realizing our vision of becoming a regional leader that provides innovative and technically superior reinsurance solutions. Our financial performance reflects what we have set out to achieve. The Gross Written Premium (GWP) increased by 19.33% to SR 1,116 million in 2021, recording the highest YoY growth in the history of Saudi Re. Total revenues increased by 32.52% from SR 660 million to SR 874 million and assets increased by 11.18% to SR 3.12 billion as at 31 December 2021. There were substantial increases in time deposits, investments held at fair value, held-to-maturity investments, and accrued reinsurance premiums.

This growth is supported by a diversified product portfolio and a solid geographic reach. The Company’s presence is most established in the Saudi market (43.21%) while its customers are well dispersed throughout Asia (28.79%), Africa (3.40%), the Middle East (8.22%), and other countries (16.38%) as well. For a more detailed analysis of our financial performance refer the Financial Review in this Directors’ Report.

The financial sustainability of Saudi Re is also further demonstrated by the Company consistently maintaining the following credit ratings.

2021 2020 2019 2018
Tassnief AA+ AA+ AA+ AA+
Moody’s A3 A3 A3 A3

These ratings give an independent assessment of Saudi Re’s sustainability, by a third party.

11.7 Our client relations

We believe in providing the best possible service for our clients, which is why transparency and fair treatment is a prime criterion in our relationships with our clientele.

Streamlining the claims process increases the client’s satisfaction. As a reinsurer with no direct connection to the original insured, we process the claims once all documents are provided by the broker or cedant. This includes proof of payment by the cedant. The claims team will review and validate claims by our partners, in accordance with the Claims Policy and Procedures.

Working in accordance with reinsurance terms, the processing and approval of claims happens within seven working days for normal claims and three working days for cash calls. Recently, Saudi Re also implemented a fast track system for clients that require their payments expedited, and also automated claims follow up. There was also an increase to the claim approval limits for team members.

Our service to our clients


We are committed to our clients’ growth by providing comprehensive reinsurance solutions. Sustained commitment to our clients is achieved through continuous client-focused innovations.

In today’s fast paced business environment, especially in an industry such as ours, constant innovation is imperative for survival.

Data privacy and security

Another important aspect of client relations is ensuring data privacy and security. This is especially important considering the threats systems such as ours are faced with today. To support this end, the necessary training in information security and awareness is provided to all employees. It is fundamental to us to maintain the trust of our clients. We have applied robust systems and procedures to guarantee our client’s safety and privacy through the implementation of data privacy and security solutions, in compliance with SAMA Cybersecurity Framework, the National Cybersecurity Authority (NCA) standards as well as international standards. We have performed three cybersecurity stress tests to identify significant gaps and areas of risk. The results were extremely satisfactory, with no security breaches being identified this year.

Innovation and digital transformation

In today’s fast paced business environment, especially in an industry such as ours, constant innovation is imperative for survival. We believe in innovation through digital transformation. Our innovation strategy is focused on generating value for clients. This year, we have initiated several innovative projects such as data warehouse, applications enhancement projects, security projects, infrastructure upgrades such as the SAMA Cybersecurity Framework or Safe Work from Home Platform. 

11.8 Sustainable Insurance

At the very heart of our business is a dedication to corporate social responsibility. The actions we take work towards building a better, and more sustainable tomorrow.

As a Sharia-compliant company, we believe that sustainability resides within our core business and investments. Promoting the best in the world, and here we look beyond the bottom line, is what defines us. Transactions made through us promote transparency, fairness and equality, and as such we do not invest in businesses that may cause harm to society. The traits we look for in investment are integrity, and increasing economic prosperity through investment. We integrate ESG considerations into reinsurance, by providing risk transfer solutions that will bring about social benefits. As of late, we have maintained our strategic investments in a diversified asset allocation system in order to guarantee the sustainability of asset quality.

Our underwriting policy also takes ESG factors into consideration. The Know-your-Customer (KYC) policy is applied to all clients to ensure the legitimacy of their business activity. Saudi Re eschews dealing with entities involved in any unlawful operations such as drugs, child laboring, human trafficking that does not align with Islamic principles and ESG. 

Insurance for all

Another facet of Saudi Re’s ESG policy is spreading awareness and knowledge about insurance and reinsurance. Saudi Re conducts insurance literacy programs, where we invite actors in the insurance industry to lead them. We also conduct technical training sessions for market participants. Saudi Re also sponsors events that promote awareness about reinsurance. We have agreed with the Actuarial Sciences Departments of several universities, to accept students as trainees to the Company. We also disseminate awareness about ESG matters. This included contributing articles on ESG to the media, and marketing collateral featuring the UNSDGs.

11.9 Supporting our communities

Saudi Re also demonstrates its commitment to ESG by innovative initiatives to uplift the social and economic conditions of local communities where we operate. Our focus areas in such activities include promoting economic growth, creating job opportunities, enhancing education, providing healthcare services, youth development and philanthropic activities. We conduct such programs with a sensitivity to the traditions and the culture of the communities, and craft them so as to improve the quality of life of the people.

Some of our community oriented programs are:

  • Sponsoring initiatives such as sports events, insurance events, and workshops.
  • Providing direct and indirect aid to charities.
  • Conducting our own charitable activities such as donations of clothing, PCs, laptops and related accessories.
  • Providing employment for youth and designing specific development programs for young professionals.
  • Encouraging a healthy environment to our communities by conducting health checkups to our employees in cooperation with Tawuniya Vitality Program.
  • Providing internships and summer jobs for students such as Tamheer Program.
  • Investing in the communities through Zakat.
  • Conducted first aid trainings to enhance employee safety and benefited the communities where they live.

11.10 Our people our pride

Training and development 

Despite all the modern technology and the external human resources at our disposal the strengths, skills, talents and experience of our staff remain paramount. We have to keep pace with constantly changing requirements and demands. Continuous development of our workforce, employee empowerment, and mutual collaboration are a source of strength to achieve our goals.

We offer training to our employees, all tailored to particular target groups according to required skills and competencies. To facilitate the process, we have developed a specialized training plan “Saudi Re Development Program” (SRDP) which aims to address employees’ specific needs through varied processes. An induction program is also in place, aiming for the attraction and retention of our new recruits. A Competency Framework Project has also been implemented, directed at guiding employees and helping them upgrade their skills and performance levels. All our employees receive regular performance evaluations and career development reviews. 

At the higher echelons, we plan for the development of talented staff to fill management positions. We provide the necessary training and development programs, prepare them for challenges, put in place and implement plans for smooth succession. Our training programs include a wide portfolio of skills: technical and analytical skills, corporate governance, anti-money laundering and financial crime, and cybersecurity.

Fairness, diversity and inclusion 

We are a responsible and fair employer providing an inclusive work environment. At the core of our policies, is our Code of Conduct and our Whistleblowing Policy. In dealing with misconduct, we have a grievance handling mechanism in place to deal with incidents of workplace harassment or discrimination. We rely on a wide set of policies and procedures that allow us to protect our people from any form of violation such as the Model Work Organization Regulation, Physical Security Procedure, or Incident Procedure. No discrimination or harassment cases have been reported in 2021. 

Promotion of diversity and equal opportunity is part of our ethos. This includes greater female participation. The number of women employees increased by 11.5 % in 2021. We have initiatives in place which will increase the recruitment of talented women.

Some of the female-friendly measures we have taken are:

  • Providing female employees with a separate section for better privacy.
  • Pregnant collaborators’ safety was assured by the Company during the COVID-19 pandemic. 
  • We have shown our commitment to women’s issues by recognizing international campaigns such as Women’s Day, and early detection for breast cancer. This would also have increased morale among our female employees.
  • We constantly strive to increase female representation across the Company. 
  • Providing training to female employees on management skills and leadership. In 2020, four of our female collaborators were nominated to attend the Women Leadership Program sponsored by the Human Resources Development Fund in cooperation with PNU and INSEAD.

We have a Parental Leave Policy which provides for 10 weeks (calendar days) maternity leave for female employees, and three working days for male employees. The return-to-work rate and retention rate stand at 100%.

Health and well-being

We strive to provide a safe and healthy working environment for our workforce as far as possible. Our Physical Safety Procedure is a manifestation of our inclusion of employees’ safety in Company policies. Our HR Department, Risk Management Department, and Business Continuity Team monitor health, safety, and security measures. Proactive measures are taken to eliminate possible risks, such as emergency response fire drills.

We also give due consideration to maintaining work-life balance, and providing attractive working conditions. We keep employees’ working hours in line with safe labor practices and legislation. Our workforce is educated on good health and safety practices on an ongoing basis. To improve employees’ morale, we provide give-away items on national and religious holidays and offer support for family activities. We also conduct flu vaccination campaigns anticipating the flu season. We promote awareness campaigns to stress the importance of health and safety, such as the COVID-19 campaigns and first aid training. No fatalities were recorded in 2021. 

As an additional benefit to our employees, we have launched our “WalaPlus Engagement Program”, providing employees and their families with deals and discounts on a selected range of products and services, and better terms on loans from certain banks. We also conduct employee satisfaction surveys to monitor our people’s engagement. 

In addition, we have devoted a total of 27 hours to HSE training and internal awareness sessions for employees this year.


At Saudi Re we take steps today, with an eye on tomorrow.


11.11 Protecting our planet

Saudi Re’s direct impact on the environment may be relatively small. However we believe in leading by example. We are very conscious on the impact our activities have on the market and the environment.

At Saudi Re we take steps today, with an eye on tomorrow. In accordance with reducing our environmental footprint, we have adopted several initiatives in 2021 to set an example for others to follow. Some of them are switching to energy efficient devices such as motion sensor lighting, proper disposal of e-waste and refurbishment of used computers through Ertiqa organization which is a Non-Profit Organization which specializes in collection, refurbishment and distribution of used computers, PC’s and laptops to educational and social institutes to be donated and reused by charitable educational institutes. In addition, the Company has adopted sustainable automation procedures throughout 2021, which included an eco-friendly printing system and electronic signature applications which contribute to reducing paper waste.

The Saudi Re business model is naturally inclined toward efficiency and as such, has a relatively negligible environmental footprint. However as an aspirational entity, Saudi Re will adopt any initiatives that will decrease our GHG emissions.

Ever mindful of our impact, we are fully committed to addressing every inefficiency in order to achieve the Saudi Vision 2030. We also sensitize our employees to the importance of protecting the environment.

Through our ESG policies we contribute to a number of the UN Sustainable Development Goals (UNSDGs) as described below:

  • By creating a strong diversity and inclusion framework, we avoid any form of discrimination regardless of age, gender, or disability

  • Providing access to safe and affordable medicines and vaccines for all employees

  • Promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

  • Ensuring sustainable consumption and production patterns

In conclusion

The COVID-19 pandemic has, in its wake, brought about increasing awareness of the need for business to be more environmentally and socially conscious. A wide spectrum of organizations, governmental, commercial, and non-profit need to come together to face the looming challenge of climate change. In the insurance industry, there is a growing awareness that players including rating agencies, regulators, investors and clients are increasingly viewing performance through an ESG lens. Sustainability consciousness is also gaining ground in the Middle East Region. With this background, addressing sustainability issues and incorporating them into our strategies, plans and operations will be imperative for our long-term survival and prosperity.



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