S&P assigns A- rating to Saudi Re with a stable outlook – Saudi Gazette

S&P assigns A- rating to Saudi Re with a stable outlook – Saudi Gazette

RIYADH — Saudi Reinsurance Company (Saudi Re) announced obtaining 'A-' long-term issuer credit and insurer financial strength rating and 'gcAAA' regional scale rating from S&P Global Ratings, with a stable outlook.

S&P highlighted that Saudi Re has continued to strengthen its competitive position via profitable business growth and diversification in recent years, thanks to local and international expansion. In its report published on Dec. 16, 2022, S&P mentioned that Saudi Re's exposure to catastrophe and other large risks is relatively modest and the company maintains capital adequacy above the 'AAA' level in S&P’s model.

According to S&P, the planned capital increase through a rights issue in early 2023 will further support Saudi Re’s growth plans, and that stable outlook reflects that Saudi Re will maintain excellent capital adequacy and continue to profitably expand and diversify its business over the next two years.

Furthermore, S&P views the governance practices at Saudi Re as effective and appropriate, and also regards the consistency in strategy and management's expertise and experience as a benefit to the company.

Commenting on the A- rating, Saudi Re ‘s Managing Director and CEO Fahad Al-Hesni said, “the rating comes as a recognition of Saudi Re progress and will strengthen our competitive position