Saudi Re has continued to strengthen its competitive position via profitable business growth and diversification in recent years, thanks to local and international expansion. In its report published on 16 December 2022, S&P mentioned that Saudi Re’s exposure to catastrophe and other large risks is relatively modest, and the company maintains capital adequacy above the ‘AAA’ level.
The planned capital increase through a rights issue in early 2023 will further support Saudi Re’s growth plans, and that stable outlook reflects that Saudi Re will maintain excellent capital adequacy and continue to profitably expand and diversify its business over the next two years.
The rating comes as a recognition of Saudi Re progress and will strengthen competitive position as it unlocks new growth opportunities in the global markets.
Credit rating has an important role in the insurance sector as it reflects the level of solvency and creditworthiness of reinsurers and their ability to pay claims and to meet obligations toward customers and creditors. Credit rating also supports investors’ decisions by assessing the company’s financial performance and strategic approach, as well as risk management, and governance.