RIYADH, DUBAI: Saudi Reinsurance Company (Saudi Re) announced its board’s recommendation to the General Assembly to increase the company’s capital through 10% bonus share distribution, granting one share for each 10 owned-shares.
Saudi Re noted in its announcement on the Saudi Exchange that the board recommended the increase of Saudi Re's capital to SAR 891 million (from SAR 810 million) and converting SAR 81 million ($21.6 mln) of retained earnings into capital, through this 1-for-10 bonus share distribution.
Fahad Al-Hesni, Managing Director and CEO of Saudi Re, commented: "The capital increase will strengthen Saudi Re's capital base and support the expansion plans in the domestic and international markets. The board's recommendation comes in line with Saudi Re's effort to generate better returns and create a greater shareholder value.”
Despite the unprecedented challenges that faced the reinsurance markets, 2020 financial performance marked another positive year for Saudi Re, recording SAR 60.7 million ($16 mln) net profit before Zakat with an increase of 2% compared to 2019. At the same time the financial position remained strong as the company's total assets jumped 7% to SAR 2.8 billion ($0.74 bln), while shareholders’ equity grew by 5% to SAR 923 million ($246 mln) compared to the previous year.
Saudi Re recorded a significant increase of 18% (SAR 935 million i.e. $249 mln) in Gross Written Premiumin 2020, compared to 2019 which was driven by growth in the international markets by 25% while increasing its domestic portfolio by 8%. Saudi Re continues to sustain a well-diversified book of business with growing presence in more than 40 global markets across the Middle East, Asia, Africa, and UK-based Lloyd's, representing about 63% of the company's total portfolio. This has resulted in improved combined ratios and underwriting profitability, year on year.
Saudi Re is a leading reinsurance company in the MENA region, providing risk transfer solutions and specializing in treaty and facultative reinsurance solutions in engineering, property, marine, casualty, motor, life and health. The only reinsurance-specialized company in Saudi Arabia, holds an A3 financial strength rating by Moody’s with a stable outlook.
© Press Release 2021
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