Saudi Re enjoys big increase in profits in first half of year

Saudi Reinsurance Company (Saudi Re) enjoyed a big increase in its profits in the first half of the year.

The reinsurer, which is listed on the Saudi Exchange Market (TASI), recorded a net profit before Zakat of SR42.6 million ($11.36 million) in the six-month period ending June 30, 2019, an increase of 203 per cent from SR14 million in the same period last year.

The company’s operating result also improved by 2.9 percent in the first half of the year to reach 8 million compared with SR7.8 million in the same period in the previous year.

Its net profit from investments was SR40 million in the first half compared to SR10.5 million for the same period in the previous year, an increase of 280 percent.

Its shareholders’ equity amounted to SR867 million for the first half, an increase of 4 percent 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 percent as the before Zakat net profit rose to SR17.7 million compared to SR6.4 million for the same quarter of the previous year.

Saudi Re said 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 Saudi Reinsurance Company, said 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.

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