Riyadh – Mubasher: The Public Investment Fund (PIF) has acquired a 23.08% stake in Saudi Reinsurance Company (Saudi Re) by way of a capital increase and subscription to new shares, according to a press release.
PIF’s capital investment aims to enhance Saudi Re’s growth potential by adding to its financial capacity and further reinforcing its credit rating.
Following the transaction, Saudi Re will be more able to meet rapid growth in demand and devise new products, while having increased capacity to expand in domestic and global markets.
The fund’s investment also backs Saudi insurance firms by enabling the Tadawul-listed company to deliver high-quality reinsurance, permitting Saudi insurance entities to manage risk more effectively.
Sultan Alsheikh, Head of Financial Institutions in MENA Investments at PIF, said: “By investing in Saudi Re, PIF is reinforcing a leading regional reinsurer and strengthening Saudi Arabia’s insurance sector, which is an essential component of sustainable economic growth.”
“This enhances access to quality financial services for insurers and their policyholders, and strengthens the sector,” Alsheikh mentioned.
Ahmed Al Jabr, CEO of Saudi Re, commented: “We look forward to its role in enabling Saudi Re’s strategy and reinforcing its position as a national reinsurer, while further strengthening its presence regionally and globally.”
“This investment will provide us with multiple benefits, including boosting our financial position and unlocking opportunities for expansion and growth,” Al Jabr noted.
Saudi Re is a leading MENA reinsurance company and holds an A-minus rating from S&P Global and an A3 rating from Moody's.
In the first nine months (9M) of 2024, the company’s total written premiums reached SAR 1.94 billion ($520 million).
