Saudi Re appoints its Sharia Board DetailsCreated on Monday, 24 October 2011 08:30 Saudi Re has appointed its Sharia Board effective May, 2011. The appointment of the Sharia Board comes to further supp Read more… CEO of Saudi Re ranks among the top 50 DetailsCreated on Monday, 24 October 2011 08:30 “Mena Insurance Review” has listed Mr. Fahad Al-Hesni, CEO of Saudi Re among the top 50 industry leaders in the MENA region for the year 2011, “Power 50”. Read more… Trading Stocks in Saudi Arabia DetailsCreated on Monday, 24 October 2011 08:30 “Mena Insurance Review” has listed Mr. Fahad Al-Hesni, CEO of Saudi Re among the top 50 industry leaders in the MENA region for the year 2011, “Power 50”. Read more…

Major Rating Factors Rationale Outlook Corporate Profile: A Strongly Capitalized Start-up Benefitting As The First Do .

Major Rating Factors Rationale Outlook Corporate Profile: A Strongly Capitalized Start-up Benefitting As The First Do .

Saudi Reinsurance Company “Saudi Re” announced obtaining ‘A-‘ long-term issuer credit and insurer financial strength rating and ‘gcAAA’ regional scale rating from S&P Global Ratings, with a stable outlook.   S&P highlighted that Saudi Re has continued to strengthen its competitive position via profitable business growth and diversification in recent years, thanks to local and international expansion. In its report published on 16 December 2022, S&P mentioned that Saudi Re’s exposure to catastrophe and other large risks is relatively modest and the company maintains capital adequacy above the ‘AAA’ level in S&P’s model.   According to S&P, the planned capital increase through a rights issue in early 2023 will further support Saudi Re’s growth plans, and that stable outlook reflects that Saudi Re will maintain excellent capital adequacy and continue to profitably expand and diversify its business over the next two years.   Furthermore, S&P views the governance practices at Saudi Re as effective and appropriate, and also regards the consistency in strategy and management’s expertise and experience as a benefit to the company.   Commenting on the A- rating, Fahad Al-Hesni, Managing Director and CEO of Saudi Re, said “the rating comes as a recognition of Saudi Re progress and will strengthen our competitive position as it unlocks new growth opportunities in the global markets”. Al-Hesni further noted that the strong rating is one of the main requirements for dealing with reinsurers to ensure their financial ability, and that the two A level ratings, A3 from Moody’s and now A- from S&P, further reinforces the confidence of our clients, shareholder, regulators and all stakeholders in Saudi Re and its future.   Al-Hesni also emphasized that credit rating important role in the insurance sector as it reflects the level of solvency and creditworthiness of reinsurers and their ability to pay claims and to meet obligations toward customers and creditors. Credit rating also supports investors’ decisions by assessing the company’s financial performance and strategic approach, as well as risk management, and governance.

Saudi Reinsurance Company “Saudi Re” announced its financial results for 2024, reporting a net profit after zakat of SAR 475 million, reflecting a 282% increase compared to 2023. The Company’s gross written premiums (GWP) grew by 48%, reaching SAR 2.36 billion, driven by the growth across all lines both locally and internationally. Saudi Re’s underwriting results improved significantly, with net reinsurance results increasing by 19%. The year 2024 witnessed unprecedented incidents related to natural disasters and other events; however, the Company managed to maintain portfolio profitability and operational sustainability. The Company also achieved SAR 5.33 earnings per share (EPS), a standout among the top performers in the Saudi’s insurance sector.  Additionally, net investment income rose by 629% to SAR 440 million, supported by successful divestment from the Company’s stake in Probitas Holdings (Bermuda) Limited which delivered exceptional investment returns; reflecting effective investment strategies and enhanced returns across various asset classes. Commenting on the financial results, Ahmed Al-Jabr, CEO of Saudi Re, stated: “2024 was an exceptional year in terms of results as it recorded the highest level of revenue and profit, while advancing in executing key milestones in its strategy paving the way for a new phase of growth.  In 2024, we successfully concluded PIF investment transaction in Saudi Re as an anchor investor.”  Al-Jabr added  “Building on our commitment to achieving strategic objectives and enhancing shareholder value through strong financial performance and sustainable growth, the Board of Directors has recommended to grant bonus shares to the shareholders.” In line with the Company’s outstanding performance, which drives value for shareholders, and to support the Company’s growth and strengthen its financial position, the Board of Directors has recommended increasing capital from SAR 1.158 billion to 1.698 billion representing an increase of  46.6%.  The increase will be through capitalizing of SAR 539.8 million from the retained earnings and distributing 51.480 million shares by granting 4 shares for each 9 shares and allocating an additional 2.5 million shares for establishing the Company’s employee long-term incentive plan. Additionally,the Company has maintained a strong financial position, reflected in an increase in shareholders’ equity by 41%, the preservation of a strong credit rating, and maintaining adequate technical reserves.  Saudi Re also entered into a series of important agreements in 2004 including an agreement with a reinsurance contract with Al-Etihad Cooperative Insurance Co. at a total value of SAR 208.7 million to provide reinsurance coverage for the financial dues of non-Saudi workers in the event of delinquency of the private sector entities.  Saudi Re also signed a reinsurance contract for surety insurance bond coinsurance program with Walaa Cooperative Insurance Company.  The Program is a financial guarantee solution that aims to ensure contractors meet their contractual obligations on construction projects developed for the Public Investment Fund’s (PIF) Development Companies. These agreements reinforce Saudi Re’s role in bridging the insurance gap, offering innovative solutions, and supporting financial stability.