Chairman’s Statement

Our valued Shareholders,

Grounded on sustainable profitable growth, 2024 was another successful year for Saudi Re, resulting in X 475 million and record high 41% Return on Equity (RoE) with X 5.33 Earning Per Share (EPS), which pave the way for our ambition future growth.

In 2024, Saudi Re stood out as one of highest performing Saudi listed companies in terms of total shareholders return as our share price echoed our strong performance and achieved its all-time high.

The global reinsurance market was faced with numerous challenges stemming from increased natural catastrophe losses, continued geopolitical uncertainties, moderated economic growth, persistent inflation and financial market risks, among other factors.

Saudi Re has navigated these challenging market conditions to leverage price corrections with renewed focus on profitable segments. While we anticipate potential medium-term market softening, our strategy focuses on maintaining our positive performance through strategic volatility management, risk control, and strengthening our presence in lucrative segments. The Company aims to capitalize on the Kingdom's favorable regulatory and market conditions, specifically the local retention of reinsurance premiums. This will empower the sector to assume a more active and prominent role.

4.1 Unparalleled Achievement

In 2024, Saudi Re achieved a historic milestone, reporting Gross Written Premiums (GWP) of X 2.36 billion, representing a significant 48% year-on-year (YoY) growth. This record-breaking premium level firmly reinforces Saudi Re’s position as a leading reinsurer in the Middle East. We have displayed strong growth momentum, achieved over the last five years, which has contributed to growing the topline; with 80% increase in reinsurance revenue, and an almost 19% increase in reinsurance service result.

Alongside the strong performance in our core business, we successfully executed strategic transactions, implemented a proactive investment strategy, and managed ongoing operational enhancements, which combined deliver a substantial improvement to our bottom line, boosting Saudi Re’s Net Profit after Zakat and Tax by 282% to reach X 474.8 million by the end of 2024.

These achievements have bolstered our financial strength, growing the shareholders equity by 41% and maintaining a solid credit rating.

The sale of our 49.9% stake in Probitas Holdings (Bermuda) Limited (PHBL) and its subsidiaries. was successfully completed in July 2024, with a total consideration of GBP 123 m representing nearly six times the initial investment. This strategic divestment has significantly strengthened our financial position and underwriting capacity, enabling us to pursue the Company’s strategic growth ambitions in 2024 and beyond.

In January 2025, we finalized a significant capital increase by 30% by issuing new shares to the Public Investment Fund (PIF), resulting in PIF acquiring a 23.08% stake in the Company and reinforcing Saudi Re’s position as the national reinsurer, while diversifying globally.

4.2 Our Commitment to Sustainability and Sound Governance

Environmental, Social, and Governance (ESG) principles play a pivotal role in realizing the objectives of Vision 2030. Through our holistic approach, we strive to set regional benchmarks for responsible business practices and create tangible value for all stakeholders

In 2024, Saudi Re overhauled its governance framework to ensure transparency, efficiency, and strategic oversight. The company enhanced its enterprise risk management framework under the supervision of the Risk Management Committee. To streamline decision-making, the Company updated its delegation of authority framework. Furthermore, Saudi Re strengthened its policies and procedures in underwriting to enhance risk assessment and better manage exposure to volatile sectors.

Additionally, the Board of Directors charter was also revised, strengthening governance by clearly outlining board responsibilities and oversight. All these initiatives lead to more strategic decision-making and improved alignment with international best practices. A recent BoD performance assessment was conducted resulting in enhanced effectiveness, improved board training, and streamlined decision-making processes, ensuring proactive leadership in a dynamic market.

4.3 Our Strategic Direction

In 2024, we launched Strategy Towards 2028, with a clear vision to grow Saudi Re into a diversified and robust top 50 global reinsurer, while contributing significantly to the Kingdom's economic advancement. Two primary objectives underpin our strategy: leveraging the potential of the Saudi economy and maintaining a balanced local and international portfolio.

Our four-year roadmap takes a comprehensive understanding of the evolving dynamics of the local reinsurance landscape, global consolidation trends, and most importantly, our alignment with the Kingdom's strategic objectives for the sector. Our overarching aim remains delivering exceptional value to our shareholders.

Saudi Re's strategic priorities are centered on achieving sustainable growth and stability through scaling operations, diversifying our portfolio, enhancing technical and operational capabilities, strengthening long-term relationships, and maintaining financial soundness.

We successfully achieved our 2024 targets and launched several strategic initiatives to strengthen our capabilities. Additionally, we completed the scheduled transactions to support the execution of our ambitious strategy, most notably the entry of the Saudi Public Investment Fund as a strategic shareholder in the Company.

I would like to highlight the decision of Board of Directors on 13 March 2025, recommending to the Extraordinary General Assembly an increase in the Company’s capital from X 1.158 billion to X 1.698 billion, a 46.6% increase with granting bonus shares. This step aims to support the company’s growth, strengthen its financial position, and reflects its outstanding performance, which creates value for shareholders.

4.4 Acknowledgements

I would like to take this opportunity to welcome my colleagues who have joined the Board of Directors: Mr. Fahad Al-Jumaih, Mr. Mohammed Al-Sudairy, and Mr. Christoph Thomas Fischer Hirs. I also want to express my sincere thanks and appreciation to the former members for their support throughout the company's journey.

Saudi Re's exceptional performance in 2024 reflects the expertise and vision of our Board and senior leadership, whom I thank sincerely for their guidance throughout this momentous year. My heartfelt gratitude goes to our dedicated workforce, whose vital contributions have been integral to our growth and success. With continued focus on ensuring sustainability, fostering innovation, and creating long-term value for all stakeholders, and as we explore new opportunities in a dynamic and promising market, I am confident that Saudi Re will achieve even greater milestones in the future for the benefit of its shareholders, clients, partners and all stakeholders.

Abdullatif Al-Fozan
Chairman of the Board