Our vision is “To evolve into a large and diversified reinsurer contributing to the growth of our economy aiming to be ranked among the top 50 global reinsurers” which is anchored at the core of our activities. Saudi Re has developed Strategy Towards 2028; a strategic blueprint that will enable the Company to play an anchor role as a National Reinsurer strengthening domestic retention and drive innovation to better capture new and emerging risks in local and international markets.
Our Strategy Towards 2028 is strongly aligned with the overarching Saudi Vision for the insurance sector:
Increase GDP diversification and increase sector contribution to oil and non-oil GDP
Develop highly specialized talent pool of Saudi Nationals
De-risk the KSA economic growth by providing local content solutions to retain and absorb risks locally
Supporting insurance solutions for emerging risks
Saudi Re's focuses on leveraging extensive domestic prospects while expanding internationally to foster diversification, ultimately establishing ourselves as a prominent global reinsurer within the global top 50.
Strategic Direction and Future Outlook
Driven by the dedication to solidify its status as a national champion, Saudi Re pursues two primary strategic objectives aimed at sustaining profitable growth locally and internationally:
Capitalizing on the growth potential of the Saudi economy and leveraging our advantageous presence in the Kingdom to:
Support Saudi Vision 2030 and de-risking economic growth
Play an anchor role in increased domestic market retention and absorption of risks
Drive innovation to better capture new and emerging risks
Maintaining a well-balanced portfolio with healthy composition of local and international business by:
Becoming a prominent exporter of reinsurance capacity through the prudent underwriting of international risks
Harnessing existing global reach to advance into new markets and vital capabilities.
The strategic plan was formulated with careful consideration of a range of market trends, including economic, geopolitical, social, technical, and technological factors. The strategy continues to center around the following five pillars:
We prioritize the pursuit of scale, which involves expanding our economic scale, earnings, and capital base, as well as enhancing our resilience to major losses.
Our strategy includes diversification, both geographically and in terms of risk type, to ensure a well-balanced portfolio.
We are dedicated to continuously improving our technical and operational capabilities, which include risk management, technological advancements, and human capital development.
We focus on building strong, solid, and sustainable relationships, particularly with clients and regulators.
Maintaining financial soundness is critical to the strength and stability of our business. We strive to maintain technical profitability, adequate capitalization, and favourable returns on investment.
Growing economies of scale is a crucial aspect of our strategy, as it enables us to reduce volatility and absorb large losses more easily. By attaining economies of scale, we can make larger investments in developing our capabilities and enhancing our operational efficiency. Furthermore, our scale benefits enable us to earn investment income from premium floats, thereby boosting our investment performance. To support our expansion efforts, we will continue to explore opportunities in high-growth markets in the Middle East and Asia. The strength of Saudi Re brand and our cooperative model provide further advantages in these markets.
Diversification is a crucial element of our strategic approach, enabling us to minimize correlated risks, concentration risks, and accumulation risks: ensuring a more balanced reinsurance portfolio is maintained with reduced volatility. Our efforts to diversify globally have resulted in a sound portfolio that consists of over 40 markets in the Middle East, Asia, and Africa. At present, our international business accounts for 41٪ of our portfolio.
Saudi Re also continually strives to build strong capabilities that span the entire gamut of operations in the reinsurance industry. Our underwriting team possesses strong professional skills and an in-depth understanding of the regional risk profile, guided by clearly defined risk appetite parameters. Actuarial and analytical teams work closely with the underwriters to judiciously better manage our underwriting portfolios, while our streamlined claims management, supported by technical accounting, ensures efficient operations. Saudi Re actively utilizes retrocession to manage risk exposure and mitigate the impact of volatility. Furthermore, our growth and decision-making processes are supported by our advanced capital modeling capabilities, allowing us to make informed and effective decisions.
At Saudi Re, we pride ourselves on our comprehensive operational capabilities. Our team possesses advanced technological, decision-making, and human resources skills. Our client servicing is well supported by advanced technological, analytical, and communication infrastructure, which enables us to be highly responsive to client needs. Our lean and cost-efficient infrastructure allows for efficient operations. We take a holistic approach to risk management, implementing prudent policies and programmes and closely monitoring the risk management process through the Risk, Technical, and Audit Committees of the Board.
Looking to the future, we are committed to leveraging our competitive advantage in the Saudi market by not only retaining our market share but also capitalizing on the growth opportunities presented by the expanding Saudi economy. Saudi Re is also determined to utilize its expertise and experience in the reinsurance industry to achieve sustainable long-term growth in inherent defects insurance and other classes.
Our strategy involves building and strengthening long-term relationships with clients and brokers, which is managed prudently by our skilled underwriting teams. We seek to establish strong links with high-value counterparties, and our markets in Asia are served by the branch in Kuala Lumpur. Brokers are also integral to our business process. Through leveraging the strong links, we have established with retrocession insurers, we are able to increase our capacity by reducing risk.
To maintain the financial health of the Company, financial soundness is continuously monitored using indicators for all criteria, including:
- Capital adequacy and solvency – measured by relevant ratios and internal capital model
- Asset quality – includes quality of investment portfolio and asset liability matching
- Retro and actuarial provisions – strong reserving and a high-quality retrocession programme is in place
- Management strength – effective enterprise risk management programme
- Earnings and profitability – measured by relevant ratios
- Liquidity – a highly liquid investment portfolio is maintained
- Sensitivity to market risk – limited exposure to equity markets
8.1 OVERVIEW OF NEW DEVELOPMENTS IN 2025
The company has successfully completed two significant capital increases, reinforcing its capital base and positioning Saudi Re as the highest-capitalized insurance company in the region, further enhancing its ability to seize new opportunities in both local and international markets.
PIF Transaction
On 1 January 2025, the Public Investment Fund (PIF) became a strategic shareholder in Saudi Re, acquiring a 23.08٪ ownership stake through a direct offering and subscription to newly issued shares. PIF’s entry as a strategic shareholder is closely aligned with Saudi Re’s long-term strategy to strengthen its national role and act as a key enabler of the Kingdom’s economic development. This alignment is reflected in Saudi Re’s growing contribution to national priorities, particularly those linked to Vision 2030, where PIF plays a central role. Saudi Re is well positioned to support major national mandates and strategic initiatives by providing advanced reinsurance risk management solutions that enhance the capacity and resilience of the local market.
The investment also enhances Saudi Re’s positioning both locally and internationally, supported by its recognition as a government-related entity in light of PIF’s shareholding and the Company’s national role in strengthening the insurance sector and supporting economic growth. This positioning, together with enhanced financial strength, improves Saudi Re’s ability to participate in large-scale and complex risks, including giga projects and landmark initiatives such as major international events such as the Riyadh Expo and the FIFA World Cup 2034, thereby strengthening its competitiveness and market credibility.
Furthermore, the partnership with PIF creates meaningful synergies with PIF portfolio companies, enabling Saudi Re to develop tailored insurance and reinsurance solutions addressing both traditional and emerging risks. These synergies have been instrumental in supporting key sectors such as energy, real estate, housing, and financial services, while accelerating the expansion of specialized product offerings, including Directors and Officers insurance, surety and credit, cyber risks, political risk, warranties and indemnities, and significant risk transfer solutions.
A key outcome of this collaboration has been the successful introduction of surety solutions to the Saudi market in 2025, marking a significant milestone for the local insurance sector. Developed through close collaboration with PIF and its portfolio companies, these solutions were established in a pool structure that includes participation from the local insurance market. They enhance credit capacity within the contracting and infrastructure ecosystem and support the delivery of major development projects.
Capital increase
On 1 January 2025, Saudi Re and the Public Investment Fund (PIF) announced the successful completion of a capital increase through a direct offering. Under this transaction, PIF acquired a 23.08٪ ownership stake in Saudi Re by subscribing to newly issued shares.
This strategic investment strengthened the Company’s capital base, enhanced its credit profile, and reinforced its role as the National Reinsurer of the Kingdom. By expanding domestic reinsurance capacity, the transaction supports the continued development of the Saudi insurance market, enables greater retention of insurance premiums within the local economy, and enhances risk management capabilities for domestic insurers. Collectively, these outcomes contribute to the resilience and sustainability of the Kingdom’s financial system.
On 9 October 2025, Saudi Re executed a further capital increase during 2025, raising its capital by 46.6٪ to X 1.698 billion, through the capitalization of X 539.8 million from retained earnings. Upon completion, the Company’s issued share capital increased from 115.83 million shares to 169.81 million shares.
This capital increase followed the earlier capital strengthening completed in January 2025, together reflecting a year marked by exceptional capital depth and balance sheet reinforcement. Following the completion of this transaction, Saudi Re became the highest-capitalized listed company in the Saudi insurance sector and the largest in the Middle East. The capital increase further strengthened the Company’s financial position and credit standing, enhanced market and client confidence, and provided additional capacity to support sustainable growth, competitiveness, and long-term value creation for shareholders.
International Expansion
International expansion plays a central role in Saudi Re’s long-term growth strategy, supporting the development of a diversified and resilient business portfolio while unlocking new revenue streams and access to broader customer segments. Expanding internationally also strengthens Saudi Re’s competitive positioning and global brand recognition, while exposing the company to diverse market practices that foster innovation and the adoption of leading industry standards. This strategic direction aligns with national priorities, including the Saudi Export Program and the National Insurance Strategy, which promote the global reach of Saudi financial services. Reflecting this momentum, Saudi Re’s international business exceeded X 1.05 billion in 2025, representing 36٪ of the company’s total premiums. The company services these markets from its Head Office in the KSA, leveraging international brokers and its branch in Malaysia.
In line with its long-term expansion strategy and commitment to disciplined geographic risk diversification, Saudi Re established a new branch in Gujarat International Finance Tec-City (GIFT City), in the Republic of India. This strategic milestone enhances portfolio balance, supports sustainable growth, and strengthens the resilience of the Company’s technical performance.
The establishment of the branch is aligned with the evolving regulatory framework of the Indian insurance market, which provides increased access and priority to domestic insurers and internationally established reinsurance branches operating within the country. Operating through GIFT City enables Saudi Re to participate more effectively in this framework and to engage the market on a structurally competitive basis.
In parallel with the expansion of its international branch network, Saudi Re continues to access global reinsurance markets through its established participation in the Lloyd’s of London via the existing Funds at Lloyd’s (FAL) structure. This platform remains a key component of the Company’s international diversification strategy, providing sustained exposure to a broad range of global risks and underwriting opportunities. In addition, Saudi Re is evaluating selective options to further strengthen its positioning within the Lloyd’s ecosystem, with a focus on enhancing long-term access to global reinsurance capacity, deepening market relationships, and supporting sustainable growth aligned with the company’s strategic objectives.
8.2 PROGRESSING ON LOCAL CESSION REGULATION
Local cession was mandated by article 40 of the Implementing Regulations of the Cooperative Insurance Companies Control Law by the Insurance authority. Insurance and reinsurance companies operating in Saudi Arabia are required to maintain a minimum of 30٪ of reinsure premium at least with a local provider, unless granted approval by the regulatory authority.
In October 2022, The Insurance authority introduced a new mechanism aiming at improving the enforcement of local retention of reinsurance premiums within the Kingdom and increasing the insurance sector’s contribution to the local content. This new mechanism requires insurance companies to cede a share of all their reinsurance treaties, proportional and non-proportional, to the local resonance market with effect from 1 January 2023.
The cession share of treaty contract, under new mechanism, started at 20٪ in 2023, increased to 25٪ in 2024 and reached the 30٪ in 2025. In November 2024, Insurance Authority extended the 30٪ application of local cession to cover Facultative contracts stating from 1 January 2025.
This mechanism strengthened the domestic reinsurance ecosystem and enabled the national reinsurance market to play an active role. The increased retention of reinsurance premiums within the Kingdom is expected to have a positive economic impact and contribute to the financial stability of the sector. Saudi Re is well-positioned to support the implementation the local cession and benefit from potential growth of its home market.
8.3 INHERENT DEFECTS INSURANCE (IDI) PROGRAM
Since 2020, Saudi Re has acted as the exclusive reinsurer for the Inherent Defects Insurance (IDI) Coinsurance Program, administered by Malath Insurance Company on behalf of industry participants during the period from 2020 to 2025.
The IDI policy has a duration of 10 years for the cover, Saudi Re has put in place retrocession protection as a risk management measure to manage this long-tail business.
The IDI programme underwent various implementation phases and during the year 2022 the program witnessed an improved enforcement. Starting 24 June 2025, Tawuniya became the lead insurer for the IDI pool, and Saudi Re signed a three-year reinsurance contract with Tawuniya. This partnership is expected to contribute significantly to Saudi Re’s revenue over the three-year period.
8.4 Financial Strength Rating
A reinsurance company’s credit rating represents a key measure of financial strength within the insurance sector. It reflects the Company’s solvency position, credit quality, and capacity to meet its obligations to policyholders, counterparties, and creditors. In addition, credit ratings provide investors and other stakeholders with an independent assessment of the Company’s financial performance, risk management practices, governance framework, and overall strategic discipline.
In 2025, Saudi Re’s credit profile was further affirmed by leading rating agencies. Moody’s upgraded the Company’s insurance financial strength rating to A2 from A3, reflecting enhanced capital strength and improved financial fundamentals. S&P Global Ratings subsequently affirmed the Company’s A- rating and revised the outlook to Positive from Stable, indicating expectations of sustained balance sheet strength and resilient operating performance.
According to S&P Global Ratings, the financial rating of Saudi Re reflects the Company’s strong competitive position, supported by robust top-line growth achieved over the past two years. The assessment also highlights Saudi Re’s superior underwriting performance, which compares favorably with that of regional and international peers, as well as the Company’s ability to maintain capital adequacy buffers at a confidence level exceeding 99.99٪. In addition, S&P considers Saudi Re a government-related entity, reflecting the Public Investment Fund’s position as a significant minority shareholder and the company’s role as the national reinsurer, contributing to the strengthening of the Saudi insurance sector, supporting economic growth, and extending PIF’s presence within the financial services industry.
Moody’s A2 Insurance Financial Strength Rating (IFSR) of Saudi Re reflects several key factors. These include strengthened business and financial profiles following the Public Investment Fund’s acquisition of a minority stake in Saudi Re, as well as the implementation of enhanced domestic cession regulations, which position the company to support its market position and growth prospects in Saudi Arabia. Moody’s also expects Saudi Re to continue benefiting from the ongoing growth and diversification of the Saudi economy, alongside government initiatives aimed at fostering development in the local insurance industry. Despite potential challenges from macroeconomic uncertainty and financial market volatility, the company’s profitability is expected to remain robust, supported by both underwriting performance and investment returns. Additionally, its favorable geographical mix and development of new products are likely to contribute to continued diversification, helping mitigate potential risks.
The two A-level ratings, A- from S&P with positive outlook and A2 from Moody’s, reinforce the confidence of clients, shareholders, regulators, and all stakeholders of Saudi Re and its future. These ratings are critical in ensuring Saudi Re’s financial ability when dealing with reinsurers and in supporting the Company’s growth efforts in the international markets.
8.5 Strategic Success Factors
| Success factors | Description | Saudi Re’s progress |
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Clear strategy and proposition |
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Geographic diversification |
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| Scale benefit |
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| Strong client/distribution relationships |
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High limits/ line leader |
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Active broad range of risks |
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“A rated” capital |
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Robust technical capabilities and operational effectiveness |
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