Saudi Re assigned ‘A3’ financial strength rating by Moody’s

Saudi Re for Cooperative Reinsurance Co. was assigned an “A3” insurance financial strength rating (IFSR) by Moody's Investors Service, with stable outlook, the company said in a statement.

The rating reflects the insurer’s strong brand and market position in the Kingdom, being the sole Saudi professional reinsurer and also thanks to its growing presence in its target markets of Asia, Africa and Lloyd's.

Saudi Re’s preferential position in the local market due to a right of first refusal on a portion of premiums ceded by primary carriers in the Saudi market, strong asset quality, good capital adequacy and strong financial flexibility were also taken into account.

The stable outlook reflects Moody’s expectation that Saudi Re will maintain its recent improvements in profitability whilst maintaining its strong assets quality, capital adequacy and adequate level of reserves, the statement added.

In a separate statement, Fahad Al-Hesni, managing director and CEO of Saudi Re said: “Maintaining the rating will help strengthen our competitive position, reinforce the confidence of our clients and regulators, and increase our business growth opportunities in the global markets, where the A rating is one of the main requirements for dealing with reinsurers to ensure their financial ability.”