Press Release
Saudi Reinsurance Company “Saudi Re” announced its financial results for the first half of the current financial year 2022 with improved operating results by 8 percent compared to the previous year registering SR 24 million
The Company recorded gross written premium (GWP) of SR 920 million riyals compared with SR 955 million in the similar period of the previous year. This was propelled by a staggering growth in the second quarter with a rate of 166 percent recording a GWP of SR 321 million.
The systemic volatility caused by increase interest rates and foreign currency fluctuations, affected the bottom line and resulted in a decline in net profit before zakat by 62 percent recording SR 14 million for the first half of 2022.
Commenting on the first half results, Saudi Re MD & CEO, Fahad Al-Hesni noted that Saudi Re has maintained a well-balanced underwriting portfolio with 52 percent international business, while keeping focus on risk selection which reflected positively on the underwriting performance. He further highlighted the strong growth of Saudi Re’s recent product, the inherent defects insurance (IDI), and recorded GWP of SR 223 million which indicates positive prospects for growth given that Saudi Re holds the privilege to exclusively reinsure the mandatory IDI program.
The Kingdom’s sole reinsurer received the Central Bank’s approval to increase capital to SR 1.336 billion through right issue offering for the purpose of strengthening the company’s capital base and supporting future expansion initiatives domestically and internationally as part of its Strategy Toward 2026.
Furthermore, Saudi Re maintained a strong financial position with a A3 financial strength rating by Moody’s. Total equity increased by end of first half to SR 968 million compared with SR 957 in the previous year, while technical reserves were further strengthened to reach SR 1.6 billion and total assets exceeded SR 3.7 billion by end if the first half.
Saudi Re operates in more than 40 countries across the Middle East, Asia, Africa and Lloyd’s market in the UK, and specializes in life and non-life treaty and facultative reinsurance solutions.
Saudi Reinsurance Company (Saudi Re) announced that Moody’s Investors Service, a global credit rating agency, has affirmed its A3 Insurance Financial Strength Rating (IFSR) and A1.sa national scale IFSR with a Stable Outlook.
In a statement to the Saudi Exchange (Tadawul), Saudi Re said that the ratings confirm its 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 Asia, Africa and Lloyd’s.
It further affirms Saudi Re’s preferential position in the Kingdom due to a right of first refusal on a portion of premiums ceded by primary carriers in the Saudi market, strong asset quality exemplified by its conservative investment portfolio, good capital adequacy in terms of capital levels and relatively modest exposure to natural catastrophe risk.
The ratings also reflect Saudi Re’s strong financial flexibility with non-existent leverage and good access to local capital markets, given its listing on the Saudi stock exchange and a broad investor base.
Saudi Re has initiated the process of increasing its capital by up to SAR 445.5 million ($119 million) to strengthen its capital base. The expected enlarged capital base provides a platform to enhance its market position in the broader Middle East region by providing additional capacity to support insurance market growth in Saudi Arabia and pursue further international expansion opportunities to diversify its business in line with its strategic plan.
Moreover, the forward-looking capital increase to support expected future growth highlights Saudi Re’s financial strategy, risk management, and strong overall governance.
Fahad Al-Hesni, Managing Director and Chief Executive Officer (CEO) of Saudi Reinsurance Company, commented: “The rating affirmation by Moody’s reflects Saudi Re’s strong brand and market position in domestic and international reinsurance markets. The rating reflects our strong asset quality, good capital adequacy and robust financial flexibility.”
