Saudi Re has reported a net profit before zakat (a religious obligation for all Muslims who meet the necessary criteria of wealth) of SAR 66.02 million for Q2 of 2023, a 1133% increase from the same quarter last year.
Gross Written Premiums decreased 54.49% from Q2 2022 to SAR 146.3 million for Q2 2023.
Reinsurance revenue jumped 12% to SAR 157.3 million compared to SAR 140.8 million a year earlier.
It posted a net investment income of SAR 15.3 million in Q2’23 compared to a net investment loss of SAR 9 million a year earlier, due to investment classes’ reallocation, and interest rate hikes.
Saudi Re notes that the reason for the increase in net profit before Zakat was mainly due to the improvement in reinsurance operation results by 384%.
An increase of share of profit of equity accounted investee by 31% during this quarter of SAR 21.3 million compared with SAR 2.6 million during same quarter of previous year.
Saudi Re also posted an increase in net profit before Zakat for the first half of the current financial year 2023 of SAR 82 million compared to SAR 34.8 million last year, with an increase of 135%.
The Company’s first half year results also recorded an increase in its gross written premium by 32%, reaching SAR 1.2 billion driven by strong growth in the local market and the international markets.
Notably, reinsurance service results leaped by an impressive 397% in contrast to the previous year recording SAR 73 million.
Similarly, investment income recorded a profit of SAR 26 million compared to recording loss from the previous period, driven by the reallocation of investment classes and interest rate hikes.
Noteworthy, the total shareholders’ equity showed a growth of 13%, culminating at SAR 1.094 billion at the close of the period compared to last year period.
Fahad Al-Hesni, the Managing Director and CEO of Saudi Re, stated that the first half result witnessed continued improvement in our performance across the various sectors we operate in, which reflects our effective strategy and efforts to grow profitably and diversify our book of business while maintaining a solid financial position.
He further mentioned that Saudi Re focused on harnessing the opportunities in light of the enhanced credit rating of the Company, the improvements in market conditions and the developments in the regulatory environment.