Saudi Re profits jump in 2019 boosted by investment performance

Saudi Reinsurance Company (Saudi Re) enjoyed a big increase in its profits in the financial year 2019, driven by a surge in investment income, underwriting income, and market diversification in Middle East, Asia, Africa and Lloyd's.

The reinsurer, which is listed on the Saudi Stock Exchange (Tadawul), reported a net profit before zakat of SR59.32 million ($15.7 million) for the full year ended 31 December 2019, a three-fold increase (332 percent) from SR13.72 million in the same period last year.

Its gross written premium (GWP) rose 10 percent year-on-year to reach SR792 million in 2019. Operating results also improved by 197.79 percent to reach SR26.04 million compared to SR8.77 million a year earlier.

The company's net profit from investments was SR45.4 million, compared with SR14.6 million in 2018 (an increase of 311 percent).

Fahad Al-Hesni, managing director and CEO of Saudi Re, said, “Saudi Re positive results demonstrate improvement in the technical and investment performance. We were successful in diversifying our business across more than 40 markets Middle East, Asia, Africa and 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.”

Al-Hesni added: “The company’s positive performance reflects our effective business model and endeavors to improve the financial and operational performance to maximize value for all shareholders.”