Saudi Re reports record results in 2024, proposes 47% capital increase

Saudi Reinsurance Co (Saudi Re) yesterday announced that it posted a net profit after zakat and attributable to shareholders of SAR474.8m ($126.6m) for 2024. This figure is 281% higher than the SAR124.4m chalked up in 2023.

In a statement, Saudi Re said, “2024 witnessed unprecedented incidents related to natural disasters and other events; however, the company managed to maintain portfolio profitability and operational sustainability.”

The record profit is explained by a 19% increase in net insurance results to SAR142.1m and a whopping 629% surge in investment income to SAR440.2m.

The jump in investment income was mainly due to the company's recording capital gains from the sale of its stake in Probitas Holding amounting to SAR365.9m(SAR355.3m after deducting the impact of GBP forward contracts), said Saudi Re in a statement lodged with Tadawul.

The highlights of Saudi Re’s financial performance in 2024 include:

Saudi Re also said that the 80% increase in insurance revenue in 2024 to AR1,130m was due to the growth of the company's business in line with its strategy and business plan. Gross written premiums amounted to SAR2,360m in 2024 compared to SAR1,597m in 2023, an increase of 48%.

Commenting on the financial results, Saudi Re CEO Ahmed Al-Jabr stated, “2024 was an exceptional year in terms of results as it recorded the highest level of revenue and profit, while advancing in executing key milestones in its strategy paving the way for a new phase of growth. In 2024, we successfully concluded PIF investment transaction in Saudi Re as an anchor investor.”

He added, “Building on our commitment to achieving strategic objectives and enhancing shareholder value through strong financial performance and sustainable growth, the board of directors has recommended to grant bonus shares to the shareholders.”

Capital increase

The company's board of directors has proposed a 46.60% increase in Saudi Re’s capital to SAR1,698.1m from SAR1,158.3m. This increase will be effected by issuing:

• 51.48m bonus shares to shareholders, at a rate of four shares for every nine outstanding shares, representing 44.44% of the current capital

• An additional 2.5m shares, representing 2.16% of the current capital, which are to be allocated to the long-term employee incentive share programme.

Summary of issued capital (before and after increase):

Issued capital before increase	SAR1,158,300,000
Issued capital after increase	SAR1,698,100,000
Percentage of capital increase	46.6 %
Number of shares before capital increase	115,830,000
Number of shares after capital increase	169,810,000

The capital increase is aimed at supporting Saudi Re’s growth and strengthening its financial position. Subject to approval by shareholders and regulators, it will be effected through capitalising SAR539.8m of retained earnings.

Agreements

Saudi Re also said that it had entered into a series of important agreements in 2024, including a reinsurance contract with Al-Etihad Cooperative Insurance Co for a total value of SAR208.7m to provide reinsurance coverage for the financial dues of non-Saudi workers in the event of the delinquency of private sector entities.

Saudi Re also signed a reinsurance contract for a surety insurance bond coinsurance programme with Walaa Cooperative Insurance Company. The programme is a financial guarantee solution that aims to ensure contractors meet their contractual obligations on construction projects developed for the Public Investment Fund’s development companies.

These agreements reinforce Saudi Re's role in bridging the insurance gap, offering innovative solutions, and supporting financial stability, the company said.

Listed on the Saudi Exchange (or Tadawul), Saudi Re is engaged in more than 40 markets across the Middle East, Asia, and Africa. The company holds an ‘A-’ rating from S&P and an ‘A3’ rating with a positive outlook from Moody’s, reflecting its strong financial position and sustainable strategy in the reinsurance industry.