The Saudi Reinsurance Company (Saudi Re) posted a surge of 351% in net profit after zakat to SAR475m ($126.5m) for the nine months ended 30 September 2024.
The reasons for the increase in net profit in the first three quarters of this year include:
- Insurance revenue increased by 67% to SAR824.2m
- Net reinsurance results increased by 39% to SAR140.7m
- Net investment profit increased by 947% to SAR417.3m mainly due to the company recording capital gains from the sale of its stake in Probitas Holding. The capital gains from the deal amounted to SAR365.9m (SAR355.3m after deducting the impact of the GBP forward contract).
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Saudi Re (SAR)
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Jan-Sep 2024
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Jan – Sep 2023
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%Change
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Reinsurance Revenue
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824,154,527
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493,958,517
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66.85
|
|
Reinsurance Service Results
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144,327,890
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109,935,874
|
31.28
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|
Net Reinsurance Results
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140,751,420
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101,171,950
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39.12
|
|
Investment Results
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417,250,335
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39,847,562
|
947.12
|
|
Net Insurance Financing Expenses
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-31,237,452
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-35,083,014
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-10.96
|
|
Net Profit (Loss), after zakat, attributable To Shareholders
|
474,951,120
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105,234,582
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351.33
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Shareholders’ Equity (after Minority Equity)@30 Sep
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1,615,141,568
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1,125,358,496
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43.52
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Gross written premiums for the first three quarters of this year amounted to SAR1,939m compared to SAR1,553m for the corresponding period in 2023, an increase of 25%.
Mr ?Ahmed Al-Jabr, CEO of Saudi Re, stated that the company maintains a sustainable growth trajectory and enjoys a solid financial position. He explained that, with promising opportunities ahead, the company aims to redirect the proceeds from the Probitas sale to develop new growth opportunities, particularly in the Saudi market, in light of the evolving regulatory landscape and increasing demand for insurance services.??
Furthermore, Saudi Re has signed several agreements, including a reinsurance contract with the AL Etihad Cooperative Insurance Company, providing coverage against employers' default valued at SAR208m. The company also announced the renewal of a one-year reinsurance contract with Probitas Corporate Capital valued at GBP33.5m ($43.3m), which will enhance its competitive capabilities and expand its operational scope in the market.
Listed in the Saudi Market Exchange, Saudi Re operates in more than 40 countries across the Middle East, Asia, Africa, and Lloyd’s market in the UK, and specialises in life and non-life treaty and facultative reinsurance solutions.