Saudi Reinsurance has posted net profits after zakat attributable to shareholders of SAR35.4m in the first quarter of this year, 11.4% higher than in the corresponding quarter of 2023.
In a statement lodged with the Saudi Exchange (Tadawul), Saudi Re said that the reasons for the increase in net profit are:
-
Reinsurance revenue increased by 56%
-
Net reinsurance results increased by 28%
-
Net investment profit increased by 74%
Summary of Saudi Re’s 1Q2025 financial performance:
|
|
1Q2025
|
1Q2024
|
% Change
|
4Q2024
|
% Change
|
|
Insurance Revenue
|
323,404,012
|
206,944,997
|
56.28
|
305,811,733
|
5.75
|
|
Result of Insurance Services
|
45,726,533
|
87,636,599
|
-47.82
|
-2,184,053
|
-
|
|
Net Reinsurance Results
|
39,857,772
|
31,090,195
|
28.20
|
1,780,980
|
2,137.97
|
|
Net Investment Results
|
31,882,760
|
18,344,668
|
73.80
|
22,931,089
|
39.04
|
|
Net Insurance Financing Expenses
|
-11,543,836
|
-6,862,730
|
68.21
|
-6,191,445
|
86.45
|
|
Net Profit (Loss), after zakat, attributable To shareholders
|
35,408,257
|
31,792,457
|
11.37
|
-139,478
|
-
|
|
Source: Tadawul
|
Gross written premiums in 1Q2025 amounted to SAR1,742m, compared to SAR1,191m in 1Q2024, an increase of 46%.
Capital increase
Saudi Re has also announced that the Insurance Authority had approved the recommendation of the board of directors to increase the company's capital by issuing bonus shares. The capital of the reinsurer is to be increased from SAR1,158,300,000 to SAR1,698,100,000 through the capitalisation of SAR539,800,000 from retained earnings.
The 46.6% increase in capital is to be effected by:
A. Distributing 51,480,000 shares as bonus shares to shareholders by granting 4 shares for every 9 shares, which represents an increase of 44.44% of the company’s capital.
B. Allocating an additional 2,500,000 shares for establishing the company's long-term incentive share employee shares plan, which represents an additional 2.16% of the company’s capital.
The capital increase is to support the company's growth and strengthen its financial position.