S&P Global affirms Saudi Re’s A- rating, revises outlook to positive

S&P revises outlook on Saudi Re from ‘stable’ to ‘positive’

S&P Global Ratings, in its report dated Nov. 25, reiterated Saudi Reinsurance Co. (Saudi Re) rating at ‘A-’ and revised outlook to positive from stable, according to a statement to Tadawul.

The credit rating reflects its competitive strength over the past two years, backed by accelerating revenue growth and strong technical performance as the insurer outperformed many of its regional and international peers. The rating also reflected maintaining capital adequacy levels above the 99.99% margin.

Additionally, S&P may raise the rating over the next two years if Saudi Re continues to strengthen its competitive position while maintaining current levels of capital adequacy and technical performance.

S&P considers the reinsurance company a government-related entity (GRE), given that the Public Investment Fund (PIF) is a major shareholder. It also cited its role as a national reinsurer that supports economic growth, and helps expand the PIF’s presence in the financial services sector.

According to Argaam data, Moody’s announced in April revising Saudi Re credit rating from “A3” to “A2”.