Saudi Reinsurance Co. (Saudi Re) said that Moody’s Investor Service, in a report issued on Oct. 2, reaffirmed its A3 Insurance Financial Strength Rating (IFSR) and A1.sa national scale IFSR with a “Stable” outlook.
In a statement to Tadawul, Saudi Re said that the ratings confirm its strong brand and market position in Saudi Arabia as the sole reinsurer, as well as a growing presence in its target markets of Asia, Africa, and Lloyd’s.
It also reflects Saudi Re’s preferential position in the Saudi market, backed by its right of first refusal on a portion of premiums ceded by primary carriers, along with the company’s strong asset quality evidenced by its conservative investment portfolio.
The rating also implies the company’s good capital adequacy in terms of capital levels, and relatively modest exposure to natural catastrophe risk. It reflects the insurer’s strong financial resilience with non-existent leverage and good access to capital markets in Saudi Arabia given its listing on the Saudi Exchange (Tadawul), in addition to broad investor base.
The report confirmed that Saudi Re achieved healthy diversification across products and regions.
The company’s investment strategy is relatively conservative, with high liquidity and moderate exposure to high asset risks.
It has a solid capital adequacy and a reinsurance program strongly supported by highly rated reinsurers.
In addition, the company’s adequacy of reserves is advanced, backed by internal and external actuarial expertise.
Saudi Re has financial flexibility as it has no debt and its listing on Tadawul provides it with good access to capital markets.
Moreover, the rating is predicted to further strengthen Saudi Re’s competitive position and support its growth efforts in the international markets, the company concluded.