Saudi Reinsurance Company (Saudi Re) has reported a net profit before zakat of SAR59.32m ($15.8m) for the year ended 31 December 2019, a three-fold increase (332%), from SAR13.72m in 2018.
The Tadawul listed reinsurer attributes the increase in net profits mainly to a 275% surge in the shareholders’ net investment income and an 85% increase in policyholders’ investment income in addition to a 30% gain in net underwriting income as a result of a rise in the net earned premiums by 5%, which had a positive impact on the underwriting results.
GWP rose 10% year-on-year to reach SAR792m in 2019 . Operating results (reinsurance operations) jumped 197.79% to SAR26.04m.
Net investment income climbed 311% to reach SAR45.4m last year from SAR14.6m in 2018. Net profit of shareholders’ capital investments increased 274.58% year-on-year to SAR36.34m from SAR9.7m.
Total shareholders’ equity grew just over 5% year-on-year to SAR875m, while, total assets rose by 8% to reach SAR2.65bn at end-2019 compared SAR2.45bn at end-2018.
Saudi Re maintains its A3 financial strength rating with a Stable outlook by Moody’s.
Commenting on the financial results, Mr Fahad Al-Hesni, managing director and CEO of Saudi Re, said, “Saudi Re’s positive results demonstrate improvement in technical and investment performance. We have been successful in diversifying our business across more than 40 markets in the Middle East, Asia, Africa and the Lloyd’s market in the UK. International business represents 60% of our written premiums which reinforces balance in our portfolio and assists in achieving sustainable earnings.”