Saudi Re’s Probitas buy to boost profile, diversify portfolio, says Al-Hesni

Saudi Re for Cooperative Reinsurance Co.’s acquisition of Probitas Holdings (Bermuda) will help boost the company’s presence in global markets and diversify its business portfolio, chief executive Fahad Al-Hesni told Argaam in an exclusive interview on Monday.

Bermuda-based Probitas invests in insurance and reinsurance business, and in the Lloyd’s market in the United Kingdom.

Lloyd’s is one of the world’s largest insurance markets with premiums of up to $40 billion.

“Saudi RE has developed initiatives that targeted the Lloyd’s market as part of its geographical expansions and risk diversification strategy… Forming strategic partnerships in leading markets offers valuable opportunities to enhance the company’s technical capabilities within such a specialist market,” Al-Hesni added.

In July, Saudi Re inked an agreement to acquire a 49.9 percent stake in Probitas Holdings Bermuda Limited (PHBL) for a total of $25 million.

Meanwhile, Al-Hesni said that thanks to its strong financial position, the insurer is ready to study potential acquisitions in other global markets.

The Saudi market, however, will remain the focus of the company, he added.