Saudi Re Achieves a 74% Profit Surge in 2023, Generating SAR 158.6 Million Net Profit before Zakat
Saudi Re announced that it achieved a net profit before Zakat and tax of SAR 158.6 million in 2023, compared to SAR 91.3 million in 2022, marking a 74% increase from the previous year. The profits after Zakat and Tax increased by 64% to SAR 124.4 million, compared to SAR 76.1 million in the previous year.
The increase in net profit after Zakat and tax can be attributed to a 43% rise in reinsurance services results due to a decrease in reinsurance services expenses, as well as an increase of 621% in net investment income and a 21% increase share of profit of equity accounted investee. Additionally, the total shareholders' equity exceeded SAR 1.146 billion by the end of 2023, representing a 13% increase from the previous year, while the earnings per share increased by 65% to SAR 1.4.
The company also achieved a 14% increase in gross written premiums, with a total of SAR 1.59 billion in 2023.The results of 2023 come in the context of a consistent profitable growth trajectory for the company. Saudi Re achieved a CAGR exceeding 18% for written premiums from 2019 to 2023, and a net profit CAGR of 28% for the same period, confirming the company's competitiveness and its ability to maintain a rapid growth pace while achieving substantial profitability rates. Moreover, the company maintains a strong financial position, as evidenced by its credit rating of A- with a stable outlook from Standard & Poor's and an A3 rating with a positive outlook from Moody's.
Commenting on the company's financial results, Fahad Al-Hesni, the Managing Director and CEO of Saudi Re, stated that the outstanding results achieved in 2023 reflect the effectiveness of the company's growth and diversification strategy emphasizing that the results were supported by a balanced performance between investment and technical operation across various domestic and international business sectors. He also highlighted Saudi Re's leading regional position as the largest reinsurance company in the Arab region in terms of premium volume and stated that the company aims to enhance its competitive position and capitalize on local and global growth opportunities.
Listed in the Saudi Market Exchange and operating under the supervision of Insurance Authority, Saudi Re operates in more than 40 countries across the Middle East, Asia and Africa, and specializes in life and non-life treaty and facultative reinsurance solutions. The company is also assigned financial strength ratings of A3 rating by Moody's and A- from S&P.
