the Completion of PIF Transaction

Industry specialists presented their views about growth prospects in the Asian insurance markets in a seminar organized by Saudi Re last week in Kuala Lumpur, Malaysia. Qian Zhu, Vice President – Senior Credit Officer, Moody’s Investors Service, highlighted that premium growth in Asia Pacific’s property and casualty (P&C) sector remains robust and continues to exceed that of other regions on the back of the region’s economic growth, increasing wealth, and the need to build infrastructure. P&C insurers are also exploring new growth drivers from non-motor lines, while pricing discipline is becoming increasingly important for defending underwriting margins amid intense competition, she added. The long-term demand for life insurance in Asia remains strong, underpinned by growing middle class and significant protection gap, citing the example of China where life insurance premium has increased by 16 percent in the first half of 2019, compared to a year earlier, Zhu noted.   In a recent report, Moody’s highlighted that regulatory changes are raising the bar on capital and internal risk management, and that tightening requirements for capital and asset liability management will strengthen the industry’s capacity to absorb shocks.  During the seminar, Mr. Ismail Mahbob, a board member in Saudi Re, addressed the upscaling potential of the Takaful business which reached 2.79 RM billion in 2018. He also discussed the product mix and distribution channels as well as the challenges and opportunities in the context of the Malaysian market.  Also among the speakers, Ahmad Al-Qarishi, Chief Risk Officer & Chief Actuary of Saudi Re, discussed the development of capital modelling and its impact on the insurer decision making and the management of counterparty risk.   Kim Hock Liu, Saudi Re Principal Officer of Saudi Re Labuan branch mentioned that the seminar brought together more than forty participants representing regulators, insurers and brokers, and offered an opportunity to actively engage in a dialogue among insurance professionals on industry matters.

Recognizing the significance of the Egyptian and North African insurance market, Saudi Re is participating for the second time as a main sponsor of the second Sharm El-Sheikh Insurance and Reinsurance Rendezvous which will be held in Sharm El-Sheikh from November 11 to 13, 2019.  Sharm Rendezvous is expected to be attended by nearly 1000 participants from the regional and international insurance and reinsurance market. The Rendezvous will discuss four important axes: -The impact of regulation today and in the future; Profitability in non-life insurance: mind the gap; Climate Risk and Natural Catastrophes and Brokers as Partners – The Key attributes to succeed in sustainable, innovative and competitive environment.

Saudi Re is pleased to announce that it has maintained an AA+ Insurance Financial Strength Rating (IFSR) by SIMAH’s Credit Rating Agency, Tassnief, with a stable outlook According to the report issued by (Tassnief), on 5th Nov. 2019, the rating of Saudi Re reflects its strong financial profile supported by its strong capitalization, with solvency levels of the company well above the requirement. It also incorporates the strength of the business profile having a well-established franchise in the key targeted markets that the company operates in, as well as the improved level of diversification for the international business, and a well-diversified GPW mix among the major lines of business. Furthermore, the report noted the strong governance framework, experienced management team, and sound financial profile and investment strategy. The rating also reflects the improvement in profitability and scale of the company that has been built over the years.

Saudi Re announces that it has received the annual Shariyah Audit Report for 2019 from its Shariyah Advisor i.e. Shariyah Review Bureau (SRB) on 16/04/2020, which confirmed that Saudi Re has complied with their Shariyah criteria standards.

Saudi Re announce the approval on the election of members of the Board of Directors for a period of three years for the period from 11/05/2020 to 10/05/2023, and their names are: Mr.Hisham Abdulmalik Al-Shaikh Mr. Fahad Abdulrahman Al-Hesni Dr. Peter F. Hugger Mr. Ahmed Sabbagh Mr. Marc Maupoux Mr. Meshari Al Hussain Mr.Jean-Luc Gourgeon Mr.Mohammad Al Otaibi Eng.Hussam Alsuwailem

Saudi Reinsurance Company (Saudi Re), announced the signing on an exclusive reinsurance contract with Malath Insurance Company, on behalf of the Saudi insurance industry, to provide reinsurance coverage on the Inherent Defects Coinsurance Program. With this arrangement, the sole Saudi reinsurer will act as the exclusive reinsurer for the Saudi Arabian Inherent Defects Coinsurance Program for five years. Saudi Re will provide reinsurance treaty and facultative protection and expects the contract is to reflect positively on Saudi Re’s sales and financial performance. The Inherent Defects Insurance (IDI) is a compulsory cover, mandated by the Council of Ministers Resolution No. 509 issued on June 5, 2018 requiring all contractors involved in private sector construction projects to obtain an IDI policy. The implementation of the IDI program will follow a phased approach over a three-year period. The Saudi Arabian Monetary Authority (SAMA) issued last March a standard policy wording for the IDI specifying a duration of 10 years for the cover. More than 100,000 construction permits were issued in 2019 based on the data of the Ministry of Municipal & Rural Affairs (MOMRA). This new line of business is expected to stir growth in the Property and Casualty sector which represents 15 percent of the overall insurance market premium in Saudi Arabian which recorded SR 37.9 billion in 2019.  Saudi Re Managing Director and Chief Executive Officer Fahad Al-Hesni commented, “We are very excited to be given the opportunity to serve as the exclusive reinsurer to the Inherent Defects Coinsurance Program. This falls within Saudi Re objective to support its home market, and we welcome the initiatives led by SAMA to develop the insurance industry and enhance the market practices”.“The IDI is a 10-year long cover and we have arranged a special retrocession protection as risk management measure to manage this long-tail business,” Al-Hesni stated