Saudi Reinsurance Company (Saudi Re) has recently announced that SIMAH Rating Agency (Tassnief) affirmed earlier giving it Insurance Financial Service Rating (IFSR) at “AA+” with a stabilized outlook.
The AA+ rating is all displaying a very huge prospect of meeting policyholder liabilities as well as minute risk factors in addition to a diversified business profile and sound enterprise risk management.
As per the Tassnief report stated that it also had taken into consideration Saudi Re’s huge developing market share in the current year, robust brand strength, and competitive advantages it has in the native market. It also boasts of diversified operations with an overwhelming reach within its target markets of Asia, Africa, and Lloyds.
The financial risk profile assessment incorporated robust risk-adjusted capitalization indicators as evident from healthy solvency buffers, leverage-free balance sheets, and access to capital markets with the ability to raise funds if required.
Statement from Fahad Al-Hesni, Managing Director and CEO of Saudi Re
He stated: “We are pleased to have retained our rating with Tassnief acknowledging our low-risk profile, strong balance sheet strength, and improving operating performance. The ratings further reflect our strong corporate governance framework, sound risk management practices, as well as the enhanced focus on sustainability efforts along with the development and implementation of measurable environment, social, and governance (ESG) goals.”
According to Tassnief, the Saudi Re’s must focus more currently on underwriting selection and discipline translated into improving underwriting performance, which needs to be strengthened and sustained.
The Saudi Exchange (Tadawul)-listed reinsurer posted a net income of SAR 37.6 million for the first nine months of 2021, up 50% from SAR 25.1 million in the prior-year period, while Gross written premium (GWP) surged by 29.8% to SAR 1.11 billion during the period.
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