Saudi Arabia's sole local reinsurer saw its profits surge by 226% in the first quarter of 2019 against the corresponding quarter of the previous year despite 19.7% drop in GWP.
Saudi Reinsurance (Saudi Re) reported net profit before zakat of SAR24.83m (US$6.62m) for the first quarter of this year compared to around SAR7.6m for the corresponding quarter of 2018.
For the first three months of this year, GWP reached SAR424m, a 19.6% drop from the same quarter of the past year while net premiums dropped by 18% to SAR403m. Net incurred claims increased to SAR121.3m in 1Q2019, 7.8% up from the first quarter of the previous year.
The company’s information lodged with the stock exchange Tadawul showed the increase in 1Q2019 net profits was mainly to a jump of 391% in gains on investments of funds attributable to shareholders to SAR22.83m from SAR4.65m in the corresponding period last year.
Saudi Re’s capital stood at SAR810m at 31 March 2019. Shareholders’ equity (after deducting minority equity) reached SAR854.2m, a 2.35% increase from the corresponding period of the past year.
The reinsurer commands a stake of 49.9% in Bermuda-based Probitas Holdings (Bermuda) (PHBL), an investment that supports Saudi Re in diversifying its risk portfolio and gaining access to the Lloyd’s market. With a branch in Labuan, the reinsurer writes life and non-life business in more than 40 markets in MENA, Asia and Africa.