Saudi Re Credit Rating Upgraded to A2 by Moody’s with Stable Outlook

Saudi Reinsurance Company “Saudi Re” announced on Thursday that Moody’s Investors Service upgraded its Insurance Financial Strength Rating (IFSR) from A3 to A2, with a stable outlook.

Moody’s cited several factors behind the upgrade, including:

– Strengthened business and financial profile following the acquisition of a significant minority stake by the Saudi Arabia’s Public Investment Fund (PIF), and enhanced reinsurance ceding regulations, which Saudi Re is well positioned to capitalise on to support its market position and growth prospects in Saudi Arabia.

In addition, Saudi Re is expected to continue to benefit from the on-going growth and diversification of the Saudi economy and government initiatives aimed at fostering growth in the local insurance industry.

Despite potential challenges arising from macroeconomic uncertainty and financial market volatility, Saudi Re’s profitability is expected to maintain good over the next 12 to 18 months, supported by both underwriting performance and investment returns. The company’s good geographic diversification, coupled with the development of new products, will positively contribute to continued diversification, mitigating potential challenges.

The stable outlook reflects Moody’s expectations that Saudi Re’s underwriting discipline and profitability will be maintained, while simultaneously keeping strong capital adequacy and asset quality.