Saudi Re eyes 50% capital increase to retain growth power
MENA reinsurance giant Saudi Re will seek to increase capital by 50% via a rights issue to existing shareholders to underpin what it believes will be strong growth after a 19% premium surge 2021.
The SR 445.5 million ($118.7 million) rights issue would put capital to SR 1.336 billion following a minor boost the prior year paid in from retained earnings, according to a proposal approved by the company's board of directors.
“The move aims to strengthen Saudi Re’s capital base and support its future expansion activities,” management said.
The move would require approval from the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and other regulatory authorities, in addition to its extraordinary general meeting.
" Saudi Re has attained a growth rate of 19% over the past three years, as we expand our activities across more than 40 markets in the Middle East, Asia and Lloyd’s Market in the United Kingdom and Africa,” said Saudi Re's managing director and chief executive officer Fahad Al-Hesni (pictured).
Saudi Re ended 2021 with a SAR 38.3 million net profit on a 19.3% increase in gross written premium to SR 1.1 billion as it works a strategy to grow onto the top-50 global leader board of reinsurers. Saudi Re is currently pursuing a strategy horizon to 2026 focused on solidifying its presence in its home market, as well as diversifying in international markets.
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