Riyadh – Sharikat Mubasher: The Public Investment Fund (PIF) announced completing the acquisition of a 23.08% stake in Saudi Reinsurance Company (Saudi Re) through a capital increase and subscription to new shares, in compliance with Capital Market Authority regulations.
This investment aims to enhance Saudi Re’s financial capacity, strengthen its credit rating, and support the growth of Saudi insurance firms, according to an official press release.
By providing high-quality reinsurance, Saudi Re enables local insurers to manage risks better, offer adequate coverage, and reduce earnings volatility, ultimately fostering growth and innovation within the sector.
The investment is expected to keep more reinsurance premiums within Saudi Arabia, expand the local reinsurance sector, and provide improved coverage for both insurance firms and commercial activities, making the broader economy more resilient. With increased capital, Saudi Re will be better positioned to meet rising demand and drive expansion into both domestic and international markets.
Sultan Alsheikh, Head of Financial Institutions in MENA Investments at PIF, said: “By investing in Saudi Re, PIF is reinforcing a leading regional reinsurer and strengthening Saudi Arabia’s insurance sector, which is an essential component of sustainable economic growth. This enhances access to quality financial services for insurers and their policyholders, and strengthens the sector.”
Ahmed Al-Jabr, CEO of Saudi Re, commented: “We are delighted to welcome PIF as a strategic investor and look forward to its role in enabling Saudi Re’s strategy and reinforcing its position as a national reinsurer, while further strengthening its presence regionally and globally. This investment will provide us with multiple benefits, including boosting our financial position and unlocking opportunities for expansion and growth.”
Saudi Re, rated A- by S&P Global and A3 by Moody’s, reported SAR 1.94 billion ($520 million) in written premiums for the first nine months of 2024 and achieved a 17% compound annual growth rate over the past five years.