Saudi Reinsurance Company (Saudi Re) on Sunday announced its financial results for the first half of the current financial year 2022 with improved operating results by eight compared to the previous year registering SR24 million (6.39 million).
The company recorded gross written premium (GWP) of SR920 million ($244.95 million) compared with SR955 million ($254.27 million) in the similar period of the previous year. This was propelled by a staggering growth in the second quarter with a rate of 166 percent recording a GWP of SR321 million ($85.26 million).
The systemic volatility caused by increased interest rates and foreign currency fluctuations, affected the bottom line and resulted in a decline in net profit before zakat by 62 per cent recording SR14 million ($3.72 million) for the first half of 2022.
Saudi Re managing director and CEO Fahad Al Hesni noted that Saudi Re has maintained a well-balanced underwriting portfolio with 52 per cent 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 SR223 million ($59.37 million), 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 (previously known as Sama) approval to increase capital to SR1.334 billion ($355.18 million) 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 SR965 million ($256.94 million) compared with SR957 million ($254.80 million) in the previous year, while technical reserves were further strengthened to reach SR1.6 billion ($426 million) and total assets exceeded SR3.7 billion ($985.15 million) by end if the first half.
Saudi Re operates in more than 40 countries across the Middle East, Asia, Africa and Lloyd’s market in the UK, and specializes in life and non-life treaty and facultative reinsurance solutions.
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