Saudi Re poised for growth with capital raise in early 2023: S&P Global

Tadawul-listed Saudi Reinsurance Company (Saudi Re) has secured ‘A-’ long-term issuer credit and insurer financial strength rating and ‘gcAAA’ regional scale rating from S&P Global Ratings, with a stable outlook.

Saudi Re is listed on the Saudi Exchange and operates under the supervision of the Saudi Central Bank (SAMA). It provides risk transfer solutions to insurance companies in more than 40 markets across the Middle East, Asia, Africa and Lloyd’s market in the UK, and specialises in treaty and facultative reinsurance solutions in engineering, property, marine, liability, motor, life and health.

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

S&P highlighted that Saudi Re has continued to strengthen its competitive position via profitable business growth and diversification in recent years, owing to its local and international expansion. In its latest report, 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.

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.

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.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.