Saudi Reinsurance Company (Saudi Re) has announced that its shareholders have approved an increase in the company's capital to SAR1.698bn ($452.8m) from SAR1.158bn, the reinsurer said in a statement.
With this capital increase, Saudi Re becomes the top-capitalised listed company in the Saudi insurance sector and in the reinsurance sector in the Middle East.
The shareholders’ approval was given at an extraordinary general assembly held on 9 October.
The capital increase is to be realised by capitalising SAR539.8m from retained earnings. As a result, the Saudi Re’s total number of shares will rise from 115.83m to 169.81m upon completion of the capital increase.
Shareholders approved the 46.6% capital increase through the distribution of bonus shares. The increase will be implemented by issuing 51.48m shares, at a ratio of four shares for every nine existing shares, representing 44.44% of the total capital increase . An additional 2.5m shares, equivalent to 2.16% of the increase, will be allocated to the long-term employee incentive programme.
Mr Ahmed Al-Jabr, CEO of Saudi Re, said, “This milestone reinforces our financial position and credit rating, while boosting clients’ confidence in the Company’s financial strength. It further aligns with our growth strategy as the capital will be invested to advance business activities, enhance competitiveness, and sustain profitability.”
He noted that the bonus share distribution underscores the company’s ability to generate value and sustainable returns to shareholders.
This marks the second capital increase by Saudi Re during the current year, following a 30% increase in January along with the Public Investment Fund’s (PIF) entry as a strategic partner.
The company statement said, “These developments coincide with the company having strong performance, with business volume having doubled over the past three years and written premiums exceeding SAR2.3bn in 2024.”