Saudi Re doubles profits to $10.4 mln in 2017
Source: Middle East Insurance Review | Mar 2018
Saudi Re for Cooperative Reinsurance Co (Saudi Re) had a successful 2017 with profits soaring by 110.3% y-o-y to SAR38.9 million (US$10.4 million) and business from overseas chalking up notable increases.
According to preliminary results, the reinsurer’s GWP reached SAR942 million, a 4% decrease from 2016.
The increase in net profit before zakat in 2017 against the previous year is attributed to a 54% decrease in net incurred claims (SAR419 million against SAR907 million) which led to a positive impact on the underwriting results.
In addition, the net profit from policyholders’ investments increased by 28% to SAR5.4 million, while net profit from shareholders’ investments jumped by 133% to SAR46.5 million.
Commenting on the results, Mr Fahad Al-Hesni, Saudi Re’s MD-CEO, said: “This is another good year for Saudi Re, featuring record profitability, wider geographical reach and a strategic investment in Lloyd’s market. We have succeeded in increasing our business written, y-o-y, in the Asian market by 40%, the African market by 43%, and the Middle Eastern market by 21%. We are taking steady strides to expand our international presence and further diversify our portfolio. We have been very successful in placing ourselves as an established player in a very competitive market place.”
Saudi Re, the only domestic reinsurer in Saudi Arabia, is rated BBB+ by S&P and manages $693 million of total assets with $285 million in invested assets. At the end of 2017, total net technical reserves of the company stood at $294 million.
Last year, the company acquired 49.9% of the Bermuda-based Probitas Holdings (Bermuda) Limited (PHBL). M
SAR1 = US$0.27