Saudi Re raises its Capital to SAR 1.698 billion through Bonus Shares

Logo of Saudi Reinsurance Company "Saudi Re"

Saudi Reinsurance Company "Saudi Re" announced that the Extraordinary General Assembly, in its meeting held on October 9, approved increasing the Company's capital from SAR 1.158 billion to SAR 1.698 billion (USD 452.8 million) by capitalizing SAR 539.8 million from retained earnings. As a result, the Saudi Re's total number of shares will rise from 115.83 million to 169.81 million upon completion of the capital increase. With this capital increase, Saudi Re becomes the top-capitalized listed company in the Saudi insurance sector and in the reinsurance sector in the Middle East.

The Extraordinary General Assembly approved a 46.6% capital increase through the distribution of bonus shares to shareholders. The increase will be implemented by issuing 51.48 million shares, at a ratio of 4 shares for every 9 existing shares, representing 44.44% of the total capital increase. An additional 2.5 million shares, equivalent to 2.16% of the increase, will be allocated to the long-term employee incentive program.

Ahmed Al-Jabr, CEO of Saudi Re, said: "This milestone reinforces our financial position and credit rating, while boosting clients' confidence in the Company's financial strength. It further aligns with our growth strategy as the capital will be invested to advance business activities, enhance competitiveness, and sustain profitability." He noted that the bonus share distribution underscores the Company's ability to generate value and sustainable returns to shareholders.

This marks the second capital increase by Saudi Re during the current year, following a 30% increase earlier this in January along with the Public Investment Fund's (PIF) entry as a strategic partner. These developments coincide with the Company's having strong performance, with business volume having doubled over the past three years and written premiums exceeding SAR 2.3 billion by the end of 2024.

The announcement comes on the heels of a credit rating upgrade by Moody's, which raised Saudi Re's rating to "A2" with a stable outlook. The improved rating highlights the Company's strengthened business and financial profile, particularly following the Public Investment Fund's (PIF) acquisition of a significant minority stake in Saudi Re. This development, along with new regulatory mandates for local reinsurance cessions, has positively impacted the Company's performance.

Saudi Re, a portfolio company of the Public Investment Fund, is listed on the Saudi Exchange and operates under the supervision of the Insurance Authority. Saudi Re serves over 40 markets across the Middle East, Asia, and Africa. It holds a credit rating of "A2" from Moody's and "A-" from S&P Global Ratings, both with stable outlooks.