Saudi Reinsurance has announced an upgrade of its Insurance Financial Strength Rating (IFSR) by Moody's Ratings to 'A2' from 'A3' with a 'Stable' outlook.
As per Moody’s, the rating upgrade of Saudi Re reflects the following:
• Strengthened business and financial profiles following Saudi Arabia's Public Investment Fund’s acquisition of a significant minority stake in Saudi Re and the implementation of enhanced domestic cession regulations, which Saudi Re is well positioned to take advantage of to support its market position and growth prospects in Saudi Arabia.
Saudi Re said in a statement, "Moody’s noted that following the successful completion of the transaction with PIF and divestment of its holding in Probitas, Saudi Re’s shareholders' equity increased by 75% to approximately SAR2bn ($533m) in January 2025, up from SAR1.14bn at the end of 2023. The rating agency highlighted that the involvement of PIF enhances Saudi Re's business profile and provides access to additional capital to support its expansion locally and internationally.”
• The expectation that Saudi Re will continue to benefit from ongoing growth and diversification of the Saudi economy and government initiatives aimed at fostering growth in the local insurance industry.
• Despite potential challenges arising from macroeconomic uncertainty and financial market volatility, Moody’s expects Saudi Re's profitability to remain good over the next 12-18 months, supported by both underwriting performance and investment returns. Saudi Re’s good geographical mix along with the development of new products will positively contribute to the continued diversification, mitigating potential challenges.
• The ‘Stable’ outlook reflects Moody’s expectation that Saudi Re's will maintain good underwriting discipline and profitability, while simultaneously keeping strong capital adequacy and assets quality.
Commenting on the rating upgrade by Moody’s, the CEO of Saudi Re Ahmed Al-Jabr said, “We are very pleased to receive this recognition of Saudi Re’s financial strength and competitive position which provides assurance to our investors, regulators, clients, partners and all stakeholders, and reinforces their confidence in Saudi Re’s creditworthiness, financial standing and strategic direction.”
Moody's has also affirmed the ’A1.sa‘ national scale IFSR of Saudi Re. The outlook has been changed to ‘Stable’ from ‘Positive’.
Listed on the Saudi Exchange and operating under the supervision of the Insurance Authority, Saudi Re specialises in reinsurance business and operates in more than 40 markets across the Middle East, Asia, and Africa. The company holds the ‘A2’ rating from Moody’s and an ‘A-’ rating from S&P with a ‘Stable’ outlook.