Saudi Reinsurance Company (Saudi Re) has recorded a net profit before zakat of SAR24.1m ($6.4m) in the nine-month period ended 30 September 2018, an increase of 16% over the corresponding period last year.
Total comprehensive income soared by 26% over the same period last year, as the nine-month positive results were supported by a strong performance in 3Q2018.
Saudi Re recorded a net profit before zakat of SAR10m in 3Q2018 compared to a net loss of SAR270,000 in 3Q2017. Net claims declined by 16% in 3Q2018, which had a positive impact on underwriting results.
Mr Fahad Al-Hesni, managing director and CEO of Saudi Re, said in a statement, "The positive nine-month results reflect an improvement in the overall performance of Saudi Re especially on the underwriting (operational) side which turned into profitability in light of enhanced underwriting and risk selection practices. Our positive results underline our focus on creating value for our stakeholders.”
Saudi Re maintained a strong solvency margin of 300%. Total assets stood at more than SAR2.6bn at 30 September.
Saudi Re, which has capitalised on its competitive advantages of being the only reinsurer in the Kingdom, expects growth opportunities in the country, given the improving regulatory environment and potential economic initiatives under Saudi Vision 2030, a blueprint for the future development of the Kingdom.
“The company has steadily grown its international book of business which now accounts for nearly 60% from more than 40 countries across the Middle East, Asia, Africa and Lloyd's market.
“This reflects a well-balanced portfolio that reinforces our technical performance,” Mr Al-Hesni said.
Saudi Re, which is listed on the Saudi Exchange Market, offers treaty and facultative reinsurance solutions in engineering, property, marine, casualty, motor, life and health. Headquartered in Riyadh, it was founded in 2008 as the first reinsurance company in the Saudi market.