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Moody’s Investors Service «Moody’s» maintains its A3 Insurance Financial Strength Rating (IFSR) of Saudi Reinsurance Company «Saudi Re», with a stable outlook.

 

Moody’s said Saudi Re’s A3 rating reflects its strong market position and brand in Saudi Arabia as the sole professional reinsurer in the Kingdom and its growing presence in the target markets of Asia, Africa and Lloyd’s. The rating further reflects Saudi Re’s preferential status in the Saudi market due to the right of first refusal of part of premiums ceded by direct insurance companies in the local market.

 

Furthermore, Moody’s mentioned other elements of strength including Saudi Re asset quality strength, which is reflected in the reinsurer’s conservative investment portfolio, good capital adequacy, both in terms of capital levels, and relatively modest exposure to natural catastrophe risk, and, strong financial flexibility with non-existent leverage and good access to capital markets in Saudi Arabia, and broad investor base.

 

According to Moody’s, the stable outlook rating reflects its expectation that Saudi Re will maintain its recent improvements in profitability, while maintaining its strong assets quality, capital adequacy and adequate level of reserves.

 

Commenting on the A3 rating, Fahad Al-Hesni, Managing Director and CEO of Saudi Reinsurance Company, said that: “maintaining the rating will help strengthen our competitive position, reinforce the confidence of our clients and regulators, and increase our business growth opportunities in the global markets, where the A rating is one of the main requirements for dealing with reinsurers to ensure their financial ability.”