Tadawul-listed Saudi Reinsurance Company (Saudi Re) announced obtaining ‘A-‘ long-term issuer credit and insurer financial strength rating and ‘gcAAA’ regional scale rating from S&P Global Ratings, with a stable outlook.
S&P highlighted that Saudi Re has continued to strengthen its competitive position via profitable business growth and diversification in recent years, thanks to local and international expansion. In its report published on 16 December 2022, S&P mentioned that Saudi Re’s exposure to catastrophe and other large risks is relatively modest and the company maintains capital adequacy above the ‘AAA’ level in S&P’s model.
According to S&P, the planned capital increase through a rights issue in early 2023 will further support Saudi Re’s growth plans, and that stable outlook reflects that Saudi Re will maintain excellent capital adequacy and continue to profitably expand and diversify its business over the next two years.
Furthermore, S&P views the governance practices at Saudi Re as effective and appropriate, and also regards the consistency in strategy and management’s expertise and experience as a benefit to the company.
Commenting on the A- rating, Fahad Al-Hesni, Managing Director and CEO of Saudi Re, said “the rating comes as a recognition of Saudi Re progress and will strengthen our competitive position as it unlocks new growth opportunities in the global markets”. Al-Hesni further noted that the strong rating is one of the main requirements for dealing with reinsurers to ensure their financial ability, and that the two A level ratings, A3 from Moody’s and now A- from S&P, further reinforces the confidence of our clients, shareholder, regulators and all stakeholders in Saudi Re and its future.
Al-Hesni also emphasized that credit rating plays an important role in the insurance sector as it reflects the level of solvency and creditworthiness of reinsurers and their ability to pay claims and to meet obligations toward customers and creditors. Credit rating also supports investors’ decisions by assessing the company’s financial performance and strategic approach, as well as risk management, and governance.
Saudi Re is listed on the Saudi Exchange and operates under the supervision of the Saudi Central Bank (SAMA). Saudi Re provides risk transfer solutions to insurance companies in more than 40 markets across the Middles East, Asia, Africa and Lloyd’s market in the UK, and specializes in treaty and facultative reinsurance solutions in engineering, property, marine, liability, motor, life and health.
