Arqaam Cap maintains ‘Buy’ on Saudi Re, raises TP to SAR 19

Logo of Saudi Re for Cooperative Reinsurance 

Arqaam Capital maintained “Buy” recommendation on Saudi Re for Cooperative Reinsurance Co., while raising the target price (TP) to SAR 19 per share from SAR 16.30.

The insurer’s financial results for the first quarter of 2021 showed remarkable growth, with net profit soaring 90% and sales increasing by 58% year-on-year (YoY), Arqaam Capital said in a recent report.

Growth prospects for the company remain compelling during 2021-2026 period, driven by major contract wins and an improvement in the prices of reinsurance contracts globally.

In addition, Saudi Re is expected to benefit as it was named exclusive reinsurer of the new compulsory Inherent Defect Insurance (IDI) for five years.