Saudi Re says Moody’s affirms A3 rating financial strength rating with stable outlook

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Saudi Reinsurance Co. (Saudi Re) said that an A3 Insurance Financial Strength Rating (IFSR) was affirmed by Moody’s Investor Service, with stable outlook, according to the credit opinion report issued on June 16.

The A3 IFSR rating reflects the company’s strong brand and market position in Saudi Arabia as the sole reinsurer and its growing presence in the target markets of Asia, Africa and Lloyd’s.

It also reflects Saudi Re’s preferential position in the Saudi market, backed by its right of first refusal on a portion of premiums ceded by primary carriers, along with the company’s strong asset quality evidenced by its conservative investment portfolio.

The rating also implies the company’s good capital adequacy in terms of capital levels, and relatively modest exposure to natural catastrophe risk; the strong financial resilience with non-existent leverage and good access to capital markets in Saudi Arabia given its listing on the Saudi stock market, in addition to broad investor base.

The expanded capital base is expected to provide a platform that helps Saudi Re strengthen its market position in the broader Middle East region while providing additional capacity to support insurance market growth in Saudi Arabia and pursue further international expansion opportunities to diversify its business in line with its strategic plan.

The forward-looking capital raise to support expected future growth highlights Saudi Re's financial strategy and risk management, and strong overall governance.  

Moreover, the rating is predicted to further strengthen Saudi Re’s competitive position and support its growth efforts in the international markets, the company concluded.