Moody’s affirms Saudi Re’s ‘A3’ rating, outlook positive

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) announced that Moody’s Rating affirmed its rating at “A3” Insurance Financial Strength Rating (IFSR), with a positive outlook.

In a statement to Tadawul, the company said that this financial rating reflects its strong brand and market position in Saudi Arabia as the sole Saudi professional reinsurer and a growing presence in its target markets of the Middle East, Asia and Africa.

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Meanwhile, the rating affirms the company’s preferential position in the Saudi market due to a right of first refusal on a portion of premiums ceded by primary carriers in the local market and strong asset quality supported by its conservative investment portfolio.

The company also cited good capital adequacy, both in terms of capital levels and limited exposure to natural catastrophe risk and strong financial flexibility with non-existent leverage and good access to capital markets in the Kingdom, given its listing on the Saudi stock exchange, and broad investor base as reasons for the rating.

The positive outlook reflects Moody’s expectation that Saudi Re's business and financial profiles will likely improve materially over the next 12-18 months, accompanied by increased capital and a favorable operating environment and government initiatives to support the growth of the local insurance industry.

In addition, the strategic equity subscription agreement with the Public Investment Fund (PIF) will further strengthen Saudi Re's business and financial profile and support its plans to grow both locally and internationally, the statement said.