Sustainability Performance

10.1 OUR NATIONAL CONTRIBUTION

Saudi Re has sustained a strong growth trajectory across various business parameters. Over the years, we have expanded beyond our base in the Kingdom of Saudi Arabia, establishing a presence in over 40 countries across the MENA region, Asia, Africa, and the Lloyd’s Market in the UK. With a clear vision for the future, outlined in our Strategy Towards 2028, we have intensified our focus on international market expansion, positioning ourselves as a global reinsurance leader.

Saudi Re plays a vital role in advancing the non-oil sector in Saudi Arabia, aligning with the Kingdom’s Vision 2030 goals of economic diversification and reducing dependency on oil revenues. In furtherance of this vision, we strive to increase our Saudization ratio each year, focusing on the development of a skilled local workforce. Our recruitment strategies prioritize hiring Saudi citizens, Through specialized training programmes and workshops, we enhance technical expertise in the insurance and reinsurance industry, empowering professionals and driving the advancement of the financial services sector across the region. Saudi Re promotes gender diversity by encouraging and empowering women to take on leadership positions, fostering an inclusive corporate environment that aligns with Vision 2030’s emphasis on gender equality.

The Company integrates Environmental, Social, and Governance (ESG) principles into its operations, contributing to sustainable development and aligning with the Kingdom’s broader sustainability objectives.

These efforts collectively position Saudi Re as a key contributor to the Kingdom’s advancement and long-term development goals.

10.2 SUSTAINABLE SUPPLY CHAIN

Strong supplier relationships ensure reliability, cost-effectiveness, and regulatory compliance. By leveraging a robust supplier network, we have been able to improve operational resilience, adapt to market changes, and deliver greater value to stakeholders.

Saudi Re collaborates with a diverse supplier network that supports its operations and strategic goals. Key supplier categories include:

• Reinsurance brokers – Connect Saudi Re to global reinsurance markets, offering expertise, market insights, |and placement services.
• Actuarial consultants – Assist in pricing, risk evaluation, and reserves assessment to enhance underwriting decisions.
• IT and software providers – Deliver technology solutions for underwriting, claims management, and risk modeling, driving efficiency and innovation.
• Professional services – Comprise legal, audit, and financial advisory firms that ensure regulatory compliance, corporate governance, and strategic planning.
• Facility and operational services – Cover office management, maintenance, and utilities to support daily functions.

Risks and opportunities in sustainable supply chain

In the context of sustainability, opportunities abound, while certain risks are unavoidable, Saudi Re considers various measures to ensure such risks are managed and mitigated, identified for better monitoring and assessment, such as, first-line of defense methodology, updated risk registers and pre-engagement risk assessments.

Identified risks:

Identified opportunities:

Ethical and sustainable procurement

We are dedicated to building a responsible and sustainable supply chain through a transparent and equitable procurement process. Every business partner undergoes a thorough evaluation and documentation process to ensure alignment with our high standards. This rigorous approach fosters trust and reinforces our broader sustainability goals.

User awareness and education

• Conducting training sessions on the safe use of digital signatures.
• Promoting cybersecurity best practices, such as phishing awareness and avoiding insecure networks.

At Saudi Re, we maintain ethical standards, combat corruption, and promote transparency through:

• Training and awareness – Conducting regular training on ethics, compliance, and Anti-Money Laundering (AML) to educate employees.
• Transparency and accountability – Implementing strong reporting structures, audit processes, and whistleblowing mechanisms to uphold integrity.

Given below are details pertaining to our supply chain:

Key achievements in sustainable supply chain during 2024

• Credit rating for reinsurance partners: Established credit assessments to ensure strong financial partnerships.
• Procurement automation and integration: Optimized procurement processes to enhance efficiency and cost-effectiveness.
• Supplier screening enhancement: Strengthened supplier screening criteria to uphold higher standards and reliability.
• Cybersecurity awareness for suppliers: Implementing an ongoing cybersecurity awareness programme to foster a secure ecosystem.

Saudi Re’s supply chain

Saudi Re depends on key suppliers to solidify its position in the domestic market, support international growth, improve risk management, and boost operational efficiency. Partnerships with retrocessionaires, brokers, and technology providers help maintain competitive offerings, ensure regulatory compliance, and integrate sustainability. Collaborating with global suppliers also promotes diversification and provides access to advanced risk assessment tools, strengthening Saudi Re’s long-term value creation.

10.3 CORPORATE GOVERNANCE

Saudi Re is unwavering in its dedication to maintaining the highest standards of corporate governance, underscoring its role as a prominent global reinsurer and honouring its heritage as Saudi Arabia’s first and only full-fledged licenced reinsurance Company. Our governance framework is designed to empower the Board of Directors and Executive Management, placing a strong emphasis on their competence, diligence, and accountability.

Steps taken to strengthen corporate governance

• The Nomination and Remuneration Committee (NRC) carries out an annual review of Board Member independence and cross-checks related party contracts.
• All Board Members must submit an annual disclosure and report any changes as they arise.
• Newly appointed Board Members participate in an induction programme, covering key materials such as roles, responsibilities, and relevant laws and regulations.
• The Board of Directors and the General Assembly has reviewed and approved the Corporate Governance Policy.
• The Compliance Department oversees governance practices to ensure compliance with the policy and regulatory requirements.
• Conduct a comprehensive review of corporate governance in collaboration with a reputable consultant.
• Implement best practices in corporate governance, in addition to complying with existing laws and regulations.
• Regularly assess the Board structure, policies, and charters.

Board expertise

Saudi Re is guided by a seasoned and highly skilled Board of Directors responsible for implementing and continuously reviewing robust controls across all operations. The Board ensures the integrity of financial reporting, monitors the effectiveness of internal control systems, evaluates the appropriateness of the disclosure processes, and approves critical policies to drive the Organization’s success.

The Board comprises five non-executive members, five independent members, collectively bringing extensive experience of diverse expertise across various fields and disciplines. Their combined experience provides strategic direction and ensures the Company operates within a framework of regulatory compliance, corporate governance, and ethical practices.

This leadership enhances Saudi Re’s operational efficiency and stakeholder confidence, and also positions the Company as a key contributor to positive change and economic growth within both the local and national landscape.

Policy framework

The operational activities and culture of compliance at Saudi Re are regulated by the following policies:

• Corporate Governance policy
• Conflict of Interest Policy
• Whistleblowing Policy on Violations
• Sustainability and Corporate Social Responsibility Policy
• Dividend Distribution Policy
• Remuneration and Compensation Policy for Board Members, Board Committees, and Senior Executives
• Articles of Association
• Business Competition Standards and Regulations

Annual review

• The Nomination and Remuneration Committee conducted its annual evaluation of the Board’s independence and reviewed related-party contracts and transactions.
• Saudi Re upholds a robust approach to corporate governance, incorporating a comprehensive induction process for new Board Members. This ensures they gain a thorough understanding of their roles, responsibilities, and the applicable legal and regulatory requirements.
• Saudi Re has updated its Corporate Governance Policy to reflect evolving market conditions and regulatory changes. The Company remains dedicated to regularly reviewing foundational policies, charters, and related governance documents to maintain alignment with best practices.
• The revised Corporate Governance Policy has been reviewed and approved by the Board of Directors, with ongoing oversight from the Compliance Department to ensure adherence to all policies and regulations. Through these measures, Saudi Re demonstrates its commitment to fostering a culture of transparency, accountability, and regulatory compliance.

Shareholder engagement

Saudi Re is steadfast in its commitment to fostering reliable and transparent relationships with investors and key stakeholders through an effective Investor Relations function. Our dedicated Investor Relations team ensures transparency in updates, financial disclosures, and interactive engagements, empowering stakeholders to make informed decisions.

During the year, the Company leveraged a variety of measures and platforms to engage actively with stakeholders, including:

• Earnings Calls
• Investor Roadshows and Conferences
• Annual General Meeting (AGM)/Extraordinary General Meeting (EGM)
• Announcements in Mainstream Financial Media
• Corporate Disclosures on the Saudi Exchange (Tadawul)
• Saudi Re’s Investor Relations App and Official Website (saudire.net)
• This comprehensive approach ensures transparency, regulatory compliance, and seamless access to information for stakeholders.

Ownership structure

Transparent and strong investor relations

Saudi Re is unwavering in its commitment to transparency and building strong relationships with investors and key stakeholders through its dedicated Investor Relations function. Acknowledging the crucial role investors play in our success, we prioritize timely, accurate, and effective communication. Our team provides regular updates, detailed financial disclosures, and interactive engagements to support informed decision-making. As we adapt to industry best practices, Saudi Re aims to exceed investor expectations, further strengthening trust and confidence in our company.

Direct investor engagements

Investor calls/meetings

10.4 BUSINESS ETHICS AND COMPLIANCE

The workforce at Saudi Re follows a stringent and proactive Code of Professional Conduct and Ethics, reflecting the Company’s steadfast commitment to fostering a strong anti-corruption and anti-bribery culture. This code defines the ethical standards expected of all employees, ensuring integrity and accountability across the Organization.

To promote awareness, commitment, and compliance, the Compliance Department, in collaboration with the Legal Department, plays a crucial role. It facilitates regular communication with employees, fosters a culture of ethical awareness, and delivers targeted training programmes to reinforce adherence to these standards.

During the year, Saudi Re introduced the following measures in alignment with the Company’s policies:

Commitment to Strengthening Compliance

Saudi Re has established specialized departments and functions to secure the support, engagement, and commitment of Senior Management, driving the continuous enhancement of the Company’s culture of ethical conduct and compliance. This dedication to adhering to regulations and best practices reflects the Company’s broader commitment to fostering sustained, inclusive, and sustainable economic growth within the Kingdom. These efforts are further directed towards creating full and productive employment, promoting decent work, and aligning with the overarching vision of strengthening implementation mechanisms and revitalising global partnerships for sustainable development.

Saudi Re has implemented the following policies in order to foster a culture of compliance and ethics within the Company:

• Anti-Money Laundering and Combating Terrorism Financing Policy and Procedures
• Anti-Fraud Committee Charter
• Anti-Fraud Policy
• Clients Acceptance Policy
• Compliance Charter
• Compliance Policy
• Insider Trading Prevention Policy
• The Code of Professional Conduct and Ethics
• Reporting Non-Compliant Practices, “Whistleblowing” Policy
• Conflict of Interests Policy
• Disclosure and Transparency Policy

To ensure compliance align with best practices, Saudi Re’s policies and procedures are guided by and adhere to the following frameworks:

• Insurance Consumer Protection Principles issued by the Insurance authority.
• Corporate Governance Regulations issued by the Capital Market Authority (CMA) of the Kingdom of Saudi Arabia (KSA).
• Insurance Corporate Governance Regulation issued by the Insurance authority
• Audit Committee Regulations issued by the Insurance authority.

The Company has taken the following actions with regard to compliance with national and international regulations.

Saudi Re’s Internal Audit Department conducts an annual review of internal controls, drawing on insights from a comprehensive, Company-wide risk-based audit. Meanwhile, the Compliance and Risk Management function actively educates employees, sets clear standards, and ensures alignment with applicable regulations. The Company remains committed to cultivating an ethical and compliant culture, integrating best practices, and effectively managing inherent risks across all its business operations.

Non-compliance with laws and regulations

Non-compliance with laws and regulations undermines organizational integrity, risks legal penalties, damages reputation, and erodes stakeholder trust. Ensuring adherence fosters accountability, ethical practices, and long-term sustainability in personal and professional settings.

10.5 FINANCIAL PERFORMANCE

2024 was a transformative year for Saudi Re, reinforcing our position as a regional leader in reinsurance. Our unwavering commitment to delivering innovative and technically advanced solutions has translated into exceptional growth and strong financial performance.

Gross Written Premium (GWP) surged by 48%, reaching X 2.36 billion, driven by strategic market expansion and disciplined underwriting. This impressive growth was further supported by our strong credit ratings, reaffirming our resilience and market standing.

Our forward-looking strategy enabled us to capitalize on key opportunities across core business lines while diversifying revenue streams in both domestic and international markets. As a result, our Reinsurance Service Result increased to X 142.5 million, up from X 119.7 million in 2023.

Saudi Arabia remains the foundation of our business portfolio, while our international presence continues to expand. Reinsurance revenue now comprises 57% of our portfolio, highlighting our successful diversification into high-potential markets. This growth reflects our ability to capitalize on global opportunities while maintaining a strong domestic base.

Looking ahead, we remain committed to sustained growth, market leadership, and delivering long-term value to our stakeholders.

10.6 Our Clients in Focus

At Saudi Re, providing exceptional service to our clients is central to building strong relationships and driving higher client satisfaction. Our approach focuses on delivering efficient and effective claims processes, while maintaining transparency and fairness in all client interactions.

During 2024, we implemented the following measures to enhance the client experience by expanding reach, products, services, and improving service standards and internal processes:

• Applied Service Level Standards (SLS) to approve and process standard claims within seven working days.
• Applied Service Level Agreements (SLA) to approve and process Cash Calls and/or Special Settlements within three working days.

To accelerate claim settlements for our clients, we have implemented the following initiatives:

• Automation of claims processing: Up to 65% of claims processing has been automated through Insiab, enhancing efficiency and reducing turnaround time.
• Increased claim approval limits: Approval limits for team members have been raised, enabling quicker decision-making and expediting the settlement process.

Given below are details pertaining to claims settlement:

Innovations Enhancing Client Experience

This year, Saudi Re introduced a new communication system to enhance security awareness and data privacy for users. Key features include:

• Multichannel delivery: Security and privacy content is shared through desktop backgrounds, lock screens, and popup alerts for seamless engagement.
• Proactive awareness: Ensures continuous user education on cybersecurity best practices.
• Enhanced protection: Reinforces compliance with data security policies while improving overall digital safety.

These innovations contribute to a more secure and informed user experience.

Data privacy and security assurance

In order to enhance data security, privacy, and resilience against cyber threats, Saudi Re implemented the following measures:

• Policy and governance enhancements: Established and updated data privacy policies to ensure compliance with NDMO regulations.
• Employee awareness and training: Conducted sessions to improve understanding of data privacy principles and cybersecurity best practices.
• Secure data transfers: Implemented and monitored controls for external data transfers to minimize exposure risks.
• Cybersecurity monitoring: Maintained a High Cyberspace Index rating through real-time dashboards and performance tracking.
• Cyber threat management:

  – Launched a cybersecurity awareness campaign.

  – An active Threat Management Team addresses alerts from various intelligence sources within SLA timelines.

  – Maintained zero cybersecurity incidents in 2024.

• Disaster recovery improvements:

  – Enhanced IT Disaster Recovery Infrastructure,

  – Reducing Recovery Time Objective (RTO) to five minutes.

10.7 Sustainable insurance

Saudi Re continues to drive sustainable insurance practices, integrating environmental, social, and governance (ESG) principles into its operations. By embedding ESG considerations across its diverse reinsurance portfolio, the Company delivers responsible risk transfer solutions that protect communities while supporting environmental sustainability. This commitment reinforces Saudi Re’s leadership in fostering a more resilient and sustainable future.

Sharia-compliant sustainability

Saudi Re integrates sustainability into its Sharia compliant investment strategy, ensuring ethical financial practices. The Company avoids investments in industries deemed harmful to society while structuring transactions to promote equality, inclusion, and economic growth. By adhering to these principles, Saudi Re fosters a responsible and sustainable financial ecosystem.

Enhancing insurance literacy

Recognizing the importance of insurance literacy, Saudi Re actively promotes awareness and education within the industry. Through training workshops and technical programmes, insurance professionals gain insights into responsible and sustainable insurance practices. These initiatives empower stakeholders with knowledge and tools to enhance industry standards.

Education and talent development

Saudi Re collaborates with actuarial science departments at leading universities, offering internships and training that bridge theory and practice. By nurturing young talent, the Company strengthens the industry and reinforces long-term sustainability through education and mentorship.

Integrating (ESG) principles into core operations and decision-making

Saudi Re embeds sustainability into its operations, focusing on financial and social inclusion, environmental responsibility, sustainable investments, and ethical procurement. The Company avoids harmful investments, ensures transparent assessments of business partners, and prioritizes employee engagement, development, and Saudization. Its governance framework upholds trust, transparency, accountability, and ethical conduct to protect stakeholder interests. This comprehensive approach aligns with global corporate responsibility standards, reinforcing Saudi Re’s commitment to sustainable growth and long-term value creation.

The Company has been successful in integrating and mainstreaming ESG into business activities and business decision through the following measures:

• Focusing on sustainability, equity, and ethical conduct across all business activities.
• Initiatives to minimize environmental impact and promote sustainable practices.
• Enhancing social well-being through responsible business strategies.
• Maintaining strong governance practices for ethical and responsible operations.
• Continuous efforts to improve ESG performance and benchmark against listed companies.

Promoting financial/insurance literacy

We held two training sessions to enhance insurance literacy and improve access to insurance, equipping participants with essential knowledge and insights to navigate the industry effectively and promote broader financial inclusion.

Managing environmental/climate risk

Saudi Re encounters moderate environmental risks, primarily from climate-driven events affecting its global property catastrophe (re)insurance portfolio. To manage these challenges, the Company implements proactive strategies including:

• Annual policy repricing to align with evolving risk landscapes.
• Regular updates to catastrophe models for improved predictive accuracy.
• Strategic use of retrocessional protection to reduce potential losses.
• Business diversification to minimize exposure to climate-related risks.
• Maintaining strong capitalization to enhance financial resilience.

Incentivising sustainable practices

Saudi Re incentivises sustainable practices by rewarding eco-friendly initiatives, promoting sustainable investments, supporting green innovations, and recognizing efforts that align with environmental, social, and governance (ESG) principles across its operations.

Protecting communities

Saudi Re’s dedication to corporate social responsibility is deeply embedded in its core reinsurance operations. We recognize the vital role that the insurance and reinsurance industry play in promoting social well-being by mitigating risks, reducing uncertainty, and providing a safety net for institutions, industries, and individuals. We have consistently demonstrated this commitment through reinsurance coverage for natural catastrophes, life, and health policies, delivering tangible benefits to a wide range of sectors and communities. This approach underscores our mission to contribute meaningfully to societal resilience and sustainable development.

Responsible investment

Saudi Re promotes responsible investment by allocating capital to projects focused on social good, renewable energy, energy efficiency, cleaner production, and low-carbon technologies, supporting sustainable growth and reducing environmental impact.

10.8 SUPPORTING OUR COMMUNITIES

Saudi Re is committed to enhancing the socio-economic development of the communities through targeted initiatives and innovative and socially responsible practices. Our dedication to social responsibility is reflected in our Code of Professional Conduct and Ethics, which guides our actions and policies.

We tailor our focus areas to meet the specific needs of each community. Our efforts aim to foster economic growth, create job opportunities, improve education, provide healthcare services, support youth development, and engage in philanthropy. We respect the traditions and ethical values of the communities we operate in, ensuring our services align with their quality of life and address their fundamental needs. Over the years, our contributions have positively impacted economic growth, job creation, education, healthcare, youth development, and charitable activities.

Saudi Re engages with local communities primarily through the active participation of its employees. By empowering its workforce, the Company cultivates meaningful relationships with families and the wider social network, including employees, partners, and suppliers. This strategy underscores Saudi Re’s dedication to making a positive social impact and strengthening community ties.

We have organized a range of charitable activities where our employees actively participated by donating PCs, laptops, accessories, and clothing to charities in need. This initiative not only supports those less fortunate but also embodies our ethos of giving back.

To ensure the well-being of our employees and their families, we conduct regular health checkups. These efforts positively influence the communities around us by promoting health awareness and preventive care.

We also believe in the importance of family in the workplace, which is why we hosted the first of our annual “Bring Your Joy to Work” family day. This event celebrates family connections through a variety of family-friendly activities, workplace tours, workshops, and recognizing the contributions of our employees. It aims to promote unity, work-life balance, and strengthen the bonds among colleagues and their families.

Safety is another cornerstone of our corporate culture. We have launched a driving simulation campaign titled “Be Aware Drive with Care,” which encourages a culture of safety and well-being among our employees. Additionally, we conduct regular safety and fire drills to ensure preparedness and instil confidence in our workplace safety protocols.

Creating a cultural shift within

Recognizing the importance of community involvement, we have implemented internal campaigns that emphasise the significance of volunteering. These initiatives encourage our employees to engage actively in community service, reinforcing our commitment to corporate social responsibility

An internal campaign has been circulated to highlight the importance of volunteering in honour of Saudi and International Volunteer Day. Our main focus is on creating a positive impact in the community through the collective efforts of our dedicated employees. We believe in nurturing a work environment that benefits both our team members and the broader community. Our current goal is to leverage our workforce’s strengths to make meaningful and sustainable contributions that extend beyond mere numbers.

To positively affect the community through Saudi Re’s employees, we aim to cultivate a culture of social responsibility, encouraging our team members to engage actively in community service initiatives. We also prioritize professional development programmes that empower our staff to apply their expertise to community projects, creating a meaningful and lasting impact. Through these collective efforts, we strive to improve the well-being of the communities we serve and demonstrate our commitment to corporate social responsibility.

One of our key objectives is to create employment and development opportunities for national youth. We achieve this commitment through several initiatives:

• Charitable contributions: We support charities through direct donations and indirect means to tackle critical social issues.
• Sponsorship of initiatives: We actively sponsor a variety of programmes, including sports events, insurance conferences, and workshops, to enhance community well-being and development.
• Youth employment and development programmes: We provide job opportunities tailored for young professionals and develop programmes to cultivate their skills and talents.
• Internships and summer jobs: We offer students valuable real-world experience through internships and summer job programmes, helping to shape future leaders.
• Investment in community prosperity through Zakat: We invest in community prosperity through Zakat, contributing to sustainable development and addressing the needs of the less fortunate.

Our commitment to social responsibility extends beyond compliance; it reflects our genuine desire to be a positive force for change in our communities. By aligning our efforts with local needs and maintaining ethical standards, we aim to make a lasting impact on the well-being and progress of the societies we serve.

10.9 PRIORITISING OUR PEOPLE

The employees of Saudi Re are crucial to our growth and continued success. Their expertise and experience greatly enhance our strength, growth, and adaptability, driving the Company forward. We recognize their contributions as vital to achieving our goals and navigating the challenges of the industry effectively. Their commitment is invaluable to our mission.

10.10 PROTECTING OUR PLANET

Our Company is committed to addressing climate change and supporting Saudi Vision 2030. We implement comprehensive initiatives designed to promote sustainability and foster a better future for everyone, reflecting our dedication to environmental responsibility and positive impact in the communities we serve.

Setting carbon neutrality goals

We have established clear carbon neutrality targets and are actively investing in renewable energy sources. This foundational step is crucial in reducing our overall environmental impact.

Promoting a circular economy

Our focus on promoting a circular economy encourages resource efficiency and waste reduction. We engage with local communities to raise awareness and foster sustainable practices.

Innovative technologies and collaborations

We embrace innovative technologies and form strategic collaborations to enhance our environmental initiatives. By leveraging new solutions, we aim to improve our sustainability efforts and drive meaningful change.

Employee engagement and transparency

Fostering employee awareness is essential to our mission. We prioritize transparency in monitoring and reporting our progress, ensuring that our team is informed and engaged in our sustainability journey.

Managing our environmental footprint

While our business model limits our environmental impact, we are committed to minimizing our footprint by reducing water and energy consumption and improving waste management practices. We believe in preserving resources for future generations.

Paper recycling initiatives

A key focus area of our environmental management strategy is the implementation of paper recycling practices. By integrating recycling into our operations, we aim to reduce greenhouse gas (GHG) emissions and enhance our overall environmental sustainability.

Some of our key initiatives in this regard are:

• Energy efficiency: Implementing more efficient energy devices by replacing defective or outdated electrical equipment with energy-saving alternatives and installing motion sensors for lighting.
• E-waste partnership: Collaborating with a non-profit organization focused on collecting, refurbishing, and distributing used computers to educational and social institutions.
• Recycling campaign: Launching the “Recycle for a Good Cause” campaign, aimed at collecting recycled materials for donation to charities, which can sell these materials for their benefit.
• Energy savings: Replacing defective or outdated electrical devices with more efficient devices
• Water conservation: Installing faucet aerators to reduce water consumption.
• Effective waste management: Implementing donation programmes for improved waste management.

The environmental impact of our operations is minimal due to our business model. Nevertheless, we strive to manage our environmental footprint by minimizing water and energy consumption, improving waste management, and actively contributing to the preservation of resources for future generations.