Saudi Arabia: PIF announces completion of acquisition of 23.08% stake in Saudi Re
Source: Middle East Insurance Review | Feb 2025
The Public Investment Fund (PIF) has acquired a 23.08% stake in Saudi Reinsurance (Saudi Re) by way of a capital increase and subscription to new shares, with the suspension of pre-emptive rights in accordance with Capital Market Authority regulations, the fund said in a statement.
PIF’s capital investment aims to enhance Saudi Re’s growth potential by adding to its financial capacity and further strengthen its credit rating.
PIF’s capital investment also supports local insurers by enabling Saudi Re to deliver high quality reinsurance, permitting Saudi insurance companies to manage risk more effectively. Insurers use reinsurance to provide adequate coverage to their policyholders and reduce earnings volatility. Saudi Re enables Saudi insurance firms to grow and innovate.
The statement added that the investment is expected to contribute to retaining more reinsurance premiums within Saudi Arabia while also growing the local reinsurance sector and allowing better coverage for commercial activities for both insurance firms and companies in general, making the economy more financially resilient. M