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Saudi Re's net profit before Zakat increases 203% in first half of 2019

Saudi Reinsurance Company (Saudi Re), listed on the Saudi Exchange Market (TASI), recorded a net profit before Zakat of SAR 42.6 million in the six-month period ending Jun.30, 2019, an increase of 203 per cent from SAR 14.0 million in the same period last year.

 

The Company achieved growth in operating results (the results of reinsurance operations) amounted to 2.9% in the first half of this year by SAR 8.0 million compared to SAR 7.8 million for the same period in the previous year. Moreover, the net profit of investments amounted to SAR 40.0 million in the first half compared to SAR 10.5 million for the same period in the previous year, with an increase of 280 %.

 

The total shareholders’ equity amounted to SAR 867 million for the first half, with an increase of 4% compared to the end of 2018, and the dividends of the current period amounted to SAR 0.44, compared to SAR 0.1 for the same period in the previous year.

 

As for the results of Q2 of this year, the Company achieved growth by 176% as the before Zakat net profit rose to SAR 17.7 million compared to SAR 6.4 million for the same quarter of the previous year.

 

"Saudi Re" attributed the increase in net profits mainly to the decrease of net incurred claims, which had positive impact on the underwriting results, in addition to the increase in net investment income.

 

 

Fahad Al-Hesni, Managing Director and Chief Executive Officer of Saudi Reinsurance Company, emphasized that the Company's positive performance during the first half of this year is a reflection of its effective business model and endeavors to improve the financial and operational performance and maximize the shareholders’ value.

Moody’s Maintains Saudi Re’s A3 Rating; Outlook Stable


Moody’s Investors Service «Moody’s» maintains its A3 Insurance Financial Strength Rating (IFSR) of Saudi Reinsurance Company «Saudi Re», with a stable outlook.

 

Moody’s said Saudi Re’s A3 rating reflects its strong market position and brand in Saudi Arabia as the sole professional reinsurer in the Kingdom and its growing presence in the target markets of Asia, Africa and Lloyd’s. The rating further reflects Saudi Re’s preferential status in the Saudi market due to the right of first refusal of part of premiums ceded by direct insurance companies in the local market.

 

Furthermore, Moody’s mentioned other elements of strength including Saudi Re asset quality strength, which is reflected in the reinsurer’s conservative investment portfolio, good capital adequacy, both in terms of capital levels, and relatively modest exposure to natural catastrophe risk, and, strong financial flexibility with non-existent leverage and good access to capital markets in Saudi Arabia, and broad investor base.

 

According to Moody’s, the stable outlook rating reflects its expectation that Saudi Re will maintain its recent improvements in profitability, while maintaining its strong assets quality, capital adequacy and adequate level of reserves.

 

Commenting on the A3 rating, Fahad Al-Hesni, Managing Director and CEO of Saudi Reinsurance Company, said that: “maintaining the rating will help strengthen our competitive position, reinforce the confidence of our clients and regulators, and increase our business growth opportunities in the global markets, where the A rating is one of the main requirements for dealing with reinsurers to ensure their financial ability.”

Saudi Re Receives AA+ Insurance Financial Strength Rating (IFSR) From SIMAH's Credit Rating Agency (Tassnief) with stable outlook

Saudi Re is pleased to announce that it has been assigned an AA+ Insurance Financial Strength Rating (IFSR) by SIMAH's Credit Rating Agency, Tassnief, with stable outlook.

According to the rating issued on on 26 Sep. 2018, the AA+ Rating of Saudi Re reflects its strong financial profile supported by its strong equity base and debt-free capital structure. 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 the entry into the Lloyd’s market and a well diversified GPW mix among the major lines of business. Furthermore, the report noted the sound governance framework, conservative investment policy, improved underwriting procedures and risk management techniques which resulted in an improvement in technical performance of the Saudi Re.

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