Saudi Re saw a dip in gross written premiums (GWP) in H1 2022, compared to the same period in the year before.
The reinsurer said that GWP over the period was SR 920m riyals. The same period in 2021 saw GWPs of SR 955m. According to the firm, the systemic volatility caused by increase interest rates and foreign currency fluctuations, affected the bottom line and resulted in a decline in net profit before zakat by 62% recording SR 14m for the first half of 2022.
Saudi Re MD & CEO, Fahad Al-Hesni noted that Saudi Re has maintained a well-balanced underwriting portfolio with 52% international business, while keeping focus on risk selection which reflected positively on the underwriting performance.
He further highlighted the strong growth of Saudi Re’s recent product, the inherent defects insurance (IDI), and recorded GWP of SR 223m which indicates positive prospects for growth given that Saudi Re holds the privilege to exclusively reinsure the mandatory IDI program.
The Kingdom’s sole reinsurer received the Central Bank’s approval to increase capital to SR 1.336bn through right issue offering for the purpose of strengthening the company’s capital base and supporting future expansion initiatives domestically and internationally as part of its Strategy Toward 2026.
Furthermore, Saudi Re maintained a strong financial position with a A3 financial strength rating by Moody’s. Total equity increased by end of first half to SR 968m compared with SR 957m in the previous year, while technical reserves were further strengthened to reach SR 1.6bn and total assets exceeded SR 3.7bn by end if the first half.
