Saudi Reinsurance Company (Saudi Re), listed on the Saudi Stock Exchange (Tadawul), reported a net profit before zakat of SR 59.32 million for the full year ended 31 December 2019, a three-fold increase (332%), from SR 13.72 million in the same period last year.
Gross written premium (GWP) rose 10% year-on-year to reach SR 792 million in 2019, while the fourth quarter GWP surged 114% to SR 116 million. Operating results (reinsurance operations) jumped 197.79% to SR 26.04 million compared to SR 8.77 million a year earlier.
Net investment income climbed 311% to reach SR 45.4 million last year from SR 14.6 million in 2018. Net profit of shareholders capital investments increased 274.58% year-on-year to SR 36.34 million from SR 9.7 million.
Total shareholders’ equity grew just over 5% year-on-year to SR 875 million, while, total assets rose by 8% to SR 2.65 billion in 2019 compared SR 2.45 billion in 2018. Saudi Re maintained its A3 financial strength rating with a Stable outlook by Moody’s.
Commenting on the financial results, Fahad Al-Hesni, Managing Director and Chief Executive Officer of Saudi Reinsurance Company, said, “Saudi Re positive results demonstrates improvement in the technical and investment performance. We we successful in diversifying our business across more than 40 markets Middle East, Asia, Africa and Lloyds market in the UK. International business represents 60% of our written premiums which reinforces balance in our portfolio and assists in achieving sustainable earnings”
Saudi Re attributed the increase in net profits mainly to a 275% surge in the shareholders’ net investments income and an 85% increase in policyholders’ investments income in addition to a 30% gain in net underwriting income as a result of a rise in the net earned premiums by 5%, which had a positive impact on the underwriting results.
“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,” Al-Hesni concluded.