Saudi Re achieves remarkable Q1 2024 performance with significant profit increase of SAR 31.8M, surging by 184%

Saudi Reinsurance Company "Saudi Re" announced its financial results for Q1 2024 achieving a net profit after Zakat of SAR 31.8 million, compared to SAR 11.2 million in the same period of the previous year, marking a 184% increase. These results were driven by a surge in net reinsurance results by 197%, in addition to a 65% growth in net investment income compared to the similar quarter of the previous year. The company recorded growth in most of its business segments, resulting in increasing revenues to reach SAR 207 million, a 60% increase compared to the same period last year. Additionally, the company achieved an 11% growth in total gross written premiums, registering SAR 1.19 billion in Q1 2024. Furthermore, the total shareholders' equity exceeded SAR 1.18 billion by the end of Q1 2024, representing a 15% increase.

The results showed significant improvement in reinsurance profit across most lines of business during Q1 2024, supported by increased revenues from both domestic and international markets. Revenues from the Saudi market witnessed an 86% increase, while the company achieved a 43% growth in revenues from international markets compared to the same period last year, reflecting the company's efforts to maintain profitable growth momentum and balance in its business portfolio. Net investment income also rose by 65% in the current quarter compared to the same quarter of the previous year, driven by the company's expanding investment portfolio and increased returns from Murabaha deposits and fixed-income investments, resulting in SAR 18.3 million of investment income in Q1.

Commenting on the company's financial results, Ahmed Al-Jabr, Acting CEO of Saudi Re, noted that the Q1 results reflect the continued improvement in the company's financial performance, demonstrating balanced performance in both technical and investment results. Al-Jabr emphasized that with these results we start the year with a strong momentum which serve as motivation to continue working towards the company's strategic objectives for the year 2028, focusing on enhancing its competitive position in the Saudi market and maintaining an appropriate level of diversification. Furthermore, the Q1 results reinforce the company’s financial strength, with total assets exceeding SAR 2.4 billion supported by a strong credit rating.

The company previously announced the signing of an agreement to sell its 49.9% stake in Probitas Bermuda Holdings for GBP 120 million. The company accounted for part of its share of profits from Probitas representing 15 days of the current quarter booking SAR 2.5 million, compared to fully accounted share in the similar quarter last year at SAR 9.4 million. The sale is anticipated to enhance the company's capital base and financial solvency margin, creating significant value for shareholders with a return approaching five times the initial investment.

Listed in the Saudi Market Exchange and operating under the supervision of Insurance Authority, “Saudi Re” operates in more than 40 countries across the Middle East, Asia and Africa, and specializes in life and non-life treaty and facultative reinsurance solutions. The company is also assigned financial strength ratings of A3 rating by Moody's and A- from S&P.