Chief Executive Officer’s Statement

We take great pride in achieving exceptional financial results in 2024, further solidifying our financial resilience and competitive standing.

The most notable achievement of the year was a substantial 282% increase in net profit after Zakat, reaching X 475 million, driven by strong underwriting performance and robust investment returns. This enhanced profitability also contributed to a 41% rise in shareholders’ equity, which reached X 1.6 billion by the end of 2024. Similarly, earnings per share saw a significant increase, rising to X 5.33 from X 1.40 in the previous year.

Saudi Re prioritized enhancing client and broker relationships while expanding underwriting activities, driving robust growth in written premiums both domestically and internationally. This resulted in a remarkable 48% year-on-year increase, reaching approximately X 2.36 billion.

Reinsurance revenues surged to X 1.1 billion by year-end, marking an exceptional 80% increase over the prior year. Additionally, reinsurance service results grew by 19%, with profitability recorded across most business segments. This reflects our strong financial performance and operational efficiency, despite elevated claims arising from major events and natural catastrophes.

A key driver of our profitability in 2024 was the exceptional 629% growth in net investment income, fueled by the realized gains from the successful divestment of our ownership in “Probitas” and our strategic approach, which delivered substantial returns throughout the year.

These comprehensive results are a direct outcome of our continuous strategy aimed at strengthening the performance of our core insurance sectors, expanding into new, profitable sectors, and evaluating underperforming businesses within the portfolio. Over the past five years, this strategy has enabled the Company to achieve significant growth, reflected in a compound annual growth rate (CAGR) of 60% in net profit after zakat and a 24% CAGR in total written premiums.

These remarkable achievements are reflected in Saudi Re maintaining its strong credit rating of “A-” from S&P with a stable outlook. Additionally, Moody’s maintained our international financial strength rating of A3 with a positive outlook. These strong ratings reflect the efficiency of our strategy, governance, and financial management, which support our investment environment and strengthen our leading position in the Saudi market, as well as our ongoing expansion in Asia and Africa.

5.1 Strategic Initiatives

Alongside successfully meeting our 2024 strategic objectives, we initiated several programmes to advance our long-term strategy, focusing on enhancing our capabilities across multiple levers. Additionally, we finalized key strategic transactions in 2024, reinforcing our vision of positioning Saudi Re as a global, diversified reinsurer among the top 50 reinsurers worldwide, while supporting the Kingdom’s economic growth.

A landmark of the year was Saudi Re’s strategic subscription agreement with the Public Investment Fund (PIF), to facilitate a capital increase from X 891 million to X 1.15 billion, resulting in a 23.08% ownership stake.

This strategic partnership will strengthen the Company’s leadership position locally, bolster our regional and international presence, enhance our financial strength, and improve our credit rating. This significant milestone aligns with the objectives of Saudi Vision 2030 and will support the growth of the Kingdom’s insurance sector, which is a critical component in achieving sustainable economic growth. It will also enable Saudi Re to provide greater underwriting capacity to cover risks, retain more reinsurance premiums locally, and develop innovative solutions for business activity coverage, thereby increasing the financial flexibility of the economy.

Achieving a six-fold return, the GBP £123 million sale of our 49.9% stake in Probitas Holdings (Bermuda) Limited (PHBL) and its subsidiaries, has strengthened our financial and underwriting capabilities. This divestment enables resource reallocation towards domestic and international expansion, aligning with our strategic objectives.

5.2 Greater engagement with clients and partners

In 2024, Saudi Re intensified its customer relations activities to enhance interactions with both current and potential clients. These efforts contributed to the growth of the Company’s portfolio and resulted in leading new reinsurance treaties. Additionally, Saudi Re launched a digital platform to deliver services to clients and brokers more effectively and seamlessly. This initiative was complemented by organizing several seminars and training sessions for clients, participating in specialized insurance and reinsurance conferences, and sponsoring major events such as the General Arab Insurance Federation (GAIF), and the Society of Actuaries regional symposium.

In an effort to strengthen strategic alliances, Saudi Re has signed a Memorandum of Understanding with the Saudi Mortgage Guarantees Services Company “Damanat”. This partnership aims to enhance the mortgage financing sector through better risk management and the development of innovative solutions in insurance and reinsurance.

5.3 Boosting Operational Excellence

As part of our 2028 strategy, Saudi Re has focused its efforts on enhancing both technical and operational capabilities to ensure that our services evolve in line with the expectations of our clients. These efforts include developing a digital transformation plan, acquiring advanced solutions in risk management, natural catastrophe modeling, and investing in AI applications and robotic process automation. The Company has also invested in creating an attractive work environment, improving productivity, and providing specialized training and development opportunities for our employees, along with attracting skilled professionals with exceptional expertise.

5.4 Product Innovation

Saudi Re takes pride in its pivotal role in providing the necessary reinsurance capacity and expertise to support main insurance sectors. Additionally, it offers advanced and innovative solutions that address the evolving risk management needs of the Saudi market, enabling insurance companies to achieve their ambitions, drive economic growth, and contribute to the Kingdom’s ambitious vision.

In this context, the Company developed a surety bond product in partnership with the Public Investment Fund, the insurance sector, and with the support of the Insurance Authority. This programme 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.

Additionally, the Company signed a reinsurance agreement with Al-Etihad Cooperative Insurance Company, in collaboration with the Ministry of Human Resources and Social Development and the Insurance Authority. This reinsurance provides essential protection for the entitlements of foreign workers in the private sector, in case of employer defaults.

5.5 Acknowledgements

In conclusion, I would like to express my sincere gratitude for the valuable contributions of our clients, partners, and shareholders, and for the trust they have placed in us. This trust has played a pivotal role in driving growth and accelerating positive performance. I also extend my sincere thanks to our team for their unwavering dedication and efforts, as their commitment to excellence remains a cornerstone of our success. Furthermore, the support of regulatory bodies has been essential in overcoming challenges and developing the regulatory environment. As we move forward, we renew our commitment to strengthening our relationships with stakeholders and advancing our shared success.

Ahmed Al-Jabr
Chief Executive Officer