Saudi Arabia: Saudi Re reports record profit, plans capital increase
Source: Middle East Insurance Review | Apr 2025
Saudi Reinsurance Company (Saudi Re) reported a strong net profit of SAR 475m for 2024, marking a 281% increase compared to 2023. The company’s gross written premiums (GWP) rose by 48% to SAR 2.36bn, driven by significant growth in both local and international markets. Despite challenges posed by natural disasters and other factors, Saudi Re maintained its profitability, achieving an EPS of SAR 5.33.
Net investment income soared by 629% to SAR 440m, largely attributed to the successful divestment from its stake in Probitas Holdings. To enhance its financial position and support future growth, Saudi Re’s Board of Directors proposed a 46.6% capital increase, raising its capital from SAR 1.158bn to SAR 1.698bn through the issuance of 539m bonus shares. Shareholders will receive 4 bonus shares for every 9 shares held, with an additional 2.5 million shares allocated to an employee incentive plan.
Additionally, Saudi Re reinforced its market standing with strategic reinsurance agreements, including a contract with Al-Etihad Cooperative Insurance and a surety insurance bond programme with Walaa Cooperative Insurance Company. The Company holds an ‘A’- rating from S&P and an ‘A’3 rating with positive outlook from Moody’s, reflecting its strong financial position and sustainable strategies in the reinsurance industry. M