Saudi Arabia: Better pricing dynamics improve operating environment for reinsurer
Source: Middle East Insurance Review | Dec 2020
Saudi Re is carrying out business in an improving operating environment due to better pricing dynamics – with the market hardening after a lengthy soft cycle – particularly for loss-making segments, according to SIMAH’s Credit Rating Agency Tassnief.
According to a report issued by Tassnief, Saudi Re has a strong brand strength, risk profile and competitive advantage in the domestic market. The reinsurer also has a well-established franchise in the key targeted markets that the company operates in, as well as an improved level of diversification for international business.
Tassnief thus maintains an ‘AA+’ Insurance Financial Strength Rating with a stable outlook for Saudi Re.
The rating also incorporates the company’s leverage-free balance sheet, strong risk adjusted capitalisation levels, healthy liquidity buffers and improving underwriting performance. The rating is also underpinned by Saudi Re’s strong corporate governance framework and sound risk management practices. M