Riyadh: Arqaam Capital Investment Co. has recommended the purchase of Saudi Reinsurance Co., ‘Saudi Re’, a leading reinsurance company in the Middle East and North Africa, at a target price of SR 10.3 per share.
In its report, Arqaam Capital confirmed that the Saudi Exchange -listed Company ‘Saudi Re’ witnessed improving profitability, has a strong underwriting track record, along with an A3 rating and a stable outlook (Moody's Investors Service Inc.).
The report stated: “The target price of ‘Saudi Re' shares is considered a 44% growth opportunity on the current market price, in the framework of the anticipated valuation on P/tNAV. It is expected that return on equity (RoE) will increase to 6.5% during the current fiscal year, with the local and international growth, and improved investment yields and underwriting markets."
The Investment bank’s report highlighted the 'Saudi Re' strong brand and market position in the market, given it is the sole reinsurer in Saudi Arabia and has a growing presence in its target markets of the Middle East, Asia, Africa and Lloyd's.
The prime investment features of 'Saudi Re', according to the report, include its preferential position in the local insurance market, the quality of its strong assets in its conservative investment portfolio, good capital adequacy with relatively modest exposure to natural catastrophe risk, strong financial flexibility with non-existent leverage, broad investor base, and good access to capital markets in the Kingdom of Saudi Arabia.
'Saudi Re’ is considered a leading reinsurance company in the MENA region, providing risk transfer solutions to insurance companies in more than 40 markets across the Middle East, Asia, and has a paid up capital of SR 810 million (US$216 million).
Saudi Re, which is listed on the Saudi Exchange Market, offers treaty and facultative reinsurance solutions in engineering, property, marine, casualty, motor, life and health.
‘Headquartered in Riyadh, Saudi Arabia, where it was founded in 2008 as the first reinsurance company in the Saudi market, Saudi Re is presently rated an A3 insurance financial strength rating (IFSR) by Moody's with a stable outlook.
© Press Release 2019Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
