Saudi Reinsurance Company «Saudi Re» announced that «Moody’s» has maintained their Insurance Financial Strength Rating (IFSR) at A3 with a stable outlook.
Based on «Moody’s» report, Saudi Re’s A3 IFSR rating reflects its strong market position and brand in Saudi Arabia as the sole professional reinsurer in the Kingdom, combined with its asset quality strength as manifested in its conservative investment portfolio, along with its growing presence in the target markets of Asia, Africa, and Lloyd’s in UK.
The stable outlook rating reflects «Moody’s» expectation that Saudi Re, the only reinsurer listed on the Saudi Stock Exchange (Tadawul), will continue its recent improvements in profitability, while maintaining its strong assets quality, capital adequacy and adequate level of reserves. The rating affirmation is expected to further strengthen Saudi Re’s competitive position and increase business growth opportunities in the global markets.
Moody’s report further confirmed that the strong assets quality and capital adequacy are among the most important strengths of the Company, which is reflected in a relatively conservative investment portfolio, high financial flexibility with non-existent leverage and good access to capital markets in Saudi Arabia, a broad investor base, a good level of capital adequacy, and relatively modest exposure to natural catastrophe risk.
Commenting on this rating, Fahad Al-Hesni, Managing Director and CEO of Saudi Reinsurance Company, said: “Maintaining the rating will support our business growth opportunities, as A3 Insurance Financial Strength Rating is one of the key indicators reflecting the financial viability of reinsurers, which influences clients’ decisions being a specialized, independent, and professional rating. This rating also reinforces the confidence of our regulators, shareholders, partners, and clients.”
Al-Hesni stressed that the strong financial position of Saudi Re and its numerous competitive advantages, combined with its strong market position and brand in Saudi Arabia, contributed to helping the Company maintain this International Financial Strength Rating.
The significance of this credit rating in the insurance sector is that it helps identify the company’s solvency and credit worthiness, its ability to pay compensation to clients and beneficiaries, and fulfil its obligations towards its clients. This rating contributes to supporting investor decisions by evaluating the progress of the company, its financial performance, strategic approach, governance, and risk management method.
Saudi Re is a leading reinsurance company in the MENA region, providing risk transfer solutions to insurance companies in more than 40 markets. The company offers treaty and facultative reinsurance solutions in engineering, property, marine, casualty, motor, life and health.