Saudi Re’s 9M results reflect improved operating performance: CEO

Saudi Re for Cooperative Reinsurance Co.’s (Saudi Re) financial results for the first nine months of 2018 reflected performance improvement, especially in terms of operating results, CEO Fahad Al-Hesni said in a statement to Argaam.

The company was able to turn to profit due to a development of underwriting procedures and risk management, he said, adding that the total shareholders’ equity rose 4 percent year-on-year (YoY) for the period.

Saudi Re’s total assets exceed SAR 2.6 billion, while maintaining a strong solvency margin of over 300 percent, he said.

The insurer has utilized its advantage as a Saudi company working in one of the strongest regional insurance markets, Al-Hesni said, noting that the firm seeks to benefit from the legislative enhancements and economic initiatives the Kingdom is witnessing, he said.

Saudi Re’s international reinsurance premiums grew to account for around 60 percent of the company’s portfolio. This reflects the firm’s geographical diversity and management of concentration risks, he added.

Saudi Re operates in more than 40 markets across the Middle East, Asia and Africa, leveraging its improved competitiveness, credit rating and strong financial position, he added.

According to data compiled by Argaam, Saudi Re reported a net profit before zakat of SAR 24.06 million in the first nine months of 2018, a 16.4 percent year-on-year (YoY) increase.

The insurer reported net profit before zakat at SAR 10.02 million versus net loss of SAR 0.27 million in year-earlier period.