Saudi Re’s results for the nine-month period ending 30 September 2018 show that company has steadily grown its international books, which now account for nearly 60% of its business.
Fahad Al-Hesni, Managing Director and Chief Executive Officer (CEO) of Saudi Re, said that the company’s business in more than 40 countries across the Middle East, Asia, Africa and Lloyd’s market reflect “a well-balanced portfolio that reinforces our technical performance.”
Saudi Re is the only reinsurer in Saudi Arabia and also expects to continue to see growth opportunities in its domestic market, given the improving regulatory environment and potential initiatives under the KSA Vision 2030, which aims to diversify the country’s economy away from oil.
The company also posted a net profit before Zakat of SAR 24.1 million (US $6.4 million) over the first nine months of 2018, representing an increase of 16% when compared with the same period last year.
Total comprehensive income grew by 26%, supported by a strong performance at Q3 2018, with net profit before Zakat reaching SAR 10 million (US $2.7 million), compared with a net loss of SAR 270,000 at Q3 2017.
Additionally, Saudi Re’s net claims declined by 16% at Q3 2018, which had a positive impact on its underwriting results.
“The positive nine-month results reflect an improvement in the overall performance of Saudi Re especially in the underwriting (operational) side which turned into profitability in light of the enhanced underwriting and risk selection practices,” Al-Hesni explained. “Our positive results underline our focus on creating value for our stakeholders”
Saudi Re also maintained a solvency margin of 300% and total assets of more than SAR 2.6 billion (US $690,000), while shareholders’ equity rose by 4%.
