Saudi Reinsurance Company “Saudi Re” announced obtaining 'A-' long-term issuer credit and insurer financial strength rating and 'gcAAA' regional scale rating from S&P Global Ratings, with a stable outlook.

S&P highlighted that Saudi Re has continued to strengthen its competitive position via profitable business growth and diversification in recent years, thanks to local and international expansion. In its report published on 16 December 2022, S&P mentioned that Saudi Re's exposure to catastrophe and other large risks is relatively modest and the company maintains capital adequacy above the 'AAA' level in S&P’s model.

According to S&P, the planned capital increase through a rights issue in early 2023 will further support Saudi Re’s growth plans, and that stable outlook reflects that Saudi Re will maintain excellent capital adequacy and continue to profitably expand and diversify its business over the next two years.

Furthermore, S&P views the governance practices at Saudi Re as effective and appropriate, and also regards the consistency in strategy and management's expertise and experience as a benefit to the company.

Commenting on the A- rating, Fahad Al-Hesni, Managing Director and CEO of Saudi Re, said “the rating comes as a recognition of Saudi Re progress and will strengthen our competitive position as it unlocks new growth opportunities in the global markets”. Al-Hesni further noted that the strong rating is one of the main requirements for dealing with reinsurers to ensure their financial ability, and that the two A level ratings, A3 from Moody’s and now A- from S&P, further reinforces the confidence of our clients, shareholder, regulators and all stakeholders in Saudi Re and its future.

Al-Hesni also emphasized that credit rating important role in the insurance sector as it reflects the level of solvency and creditworthiness of reinsurers and their ability to pay claims and to meet obligations toward customers and creditors. Credit rating also supports investors’ decisions by assessing the company’s financial performance and strategic approach, as well as risk management, and governance.

Saudi Reinsurance Company “Saudi Re” announced its financial results for the first half of the current financial year 2022 with improved operating results by 8 percent compared to the previous year registering SR 24 million

The Company recorded gross written premium (GWP) of SR 920 million riyals compared with SR 955 million in the similar period of the previous year. This was propelled by a staggering growth in the second quarter with a rate of 166 percent recording a GWP of SR 321 million. 

The systemic volatility caused by increase interest rates and foreign currency fluctuations, affected the bottom line and resulted in a decline in net profit before zakat by 62 percent recording SR 14 million for the first half of 2022. 

Commenting on the first half results, Saudi Re MD & CEO, Fahad Al-Hesni noted that Saudi Re has maintained a well-balanced underwriting portfolio with 52 percent international business, while keeping focus on risk selection which reflected positively on the underwriting performance. He further highlighted the strong growth of Saudi Re’s recent product, the inherent defects insurance (IDI), and recorded GWP of SR 223 million which indicates positive prospects for growth given that Saudi Re holds the privilege to exclusively reinsure the mandatory IDI program. 

The Kingdom’s sole reinsurer received the Central Bank’s approval to increase capital to SR 1.336 billion through right issue offering for the purpose of strengthening the company’s capital base and supporting future expansion initiatives domestically and internationally as part of its Strategy Toward 2026.  

Furthermore, Saudi Re maintained a strong  financial position with a A3 financial strength rating by Moody’s. Total equity increased by end of first half to SR 968 million compared with SR 957 in the previous year, while technical reserves were further strengthened to reach SR 1.6 billion and total assets exceeded SR 3.7 billion by end if the first half. 

Saudi Re operates in more than 40 countries across the Middle East, Asia, Africa and Lloyd’s market in the UK, and specializes in life and non-life treaty and facultative reinsurance solutions.

Saudi Reinsurance Company (Saudi Re) announced that Moody’s Investors Service, a global credit rating agency, has affirmed its A3 Insurance Financial Strength Rating (IFSR) and A1.sa national scale IFSR with a Stable Outlook.

In a statement to the Saudi Exchange (Tadawul), Saudi Re said that the ratings confirm its strong brand and market position in Saudi Arabia as the sole Saudi professional reinsurer, as well as a growing presence in its target markets of Asia, Africa and Lloyd’s.

It further affirms Saudi Re’s preferential position in the Kingdom due to a right of first refusal on a portion of premiums ceded by primary carriers in the Saudi market, strong asset quality exemplified by its conservative investment portfolio, good capital adequacy in terms of capital levels and relatively modest exposure to natural catastrophe risk.

The ratings also reflect Saudi Re’s strong financial flexibility with non-existent leverage and good access to local capital markets, given its listing on the Saudi stock exchange and a broad investor base. 

Saudi Re has initiated the process of increasing its capital by up to SAR 445.5 million ($119 million) to strengthen its capital base. The expected enlarged capital base provides a platform to enhance its market position in the broader Middle East region by providing additional capacity to support insurance market growth in Saudi Arabia and pursue further international expansion opportunities to diversify its business in line with its strategic plan. 

Moreover, the forward-looking capital increase to support expected future growth highlights Saudi Re’s financial strategy, risk management, and strong overall governance. 

Fahad Al-Hesni, Managing Director and Chief Executive Officer (CEO) of Saudi Reinsurance Company, commented: “The rating affirmation by Moody’s reflects Saudi Re’s strong brand and market position in domestic and international reinsurance markets. The rating reflects our strong asset quality, good capital adequacy and robust financial flexibility.”