Wednesday 12 Safar 1442 - 30 September 2020
    
  • Twitter Facebook Instagram Icon Linkedin Youtube Snapchat Alexa Icon RSS
Sign up for newsletter
Eye of Dubai
Business & Money | Wednesday 5 August, 2020 11:19 am |
Share:

Moody's affirms Saudi Re's A3 IFSR rating, stable outlook

Saudi Reinsurance Company (Saudi Re) announced today that Moody’s Investors Service (Moody’s) has affirmed the company's A3 Insurance Financial Strength Rating (IFSR) with a stable outlook.

 

 

 

The affirmation of Saudi Re’s rating reflects its strong brand and market position in Saudi Arabia and growing presence across target markets of Asia, Africa and Lloyd's.

 

 

 

The rating further reflects Saudi Re's strong asset quality exemplified by its conservative investment portfolio; good capital adequacy in terms of capital levels and relatively modest exposure to natural catastrophe risk, in addition to strong financial flexibility with non-existent leverage and good access to capital markets and broad investor base. 

 

 

 

Saudi Re's stable outlook reflects Moody's expectation that the company will retain the recent improvements in profitability, as well as maintain strong asset quality, capital adequacy and adequate level of reserves. The global rating agency maintains that COVID-19 impact on Saudi Re will be limited, given its low exposure to high risks investments and actions taken by the Saudi government.

 

 

 

Moody’s report mentioned that the improvement in overall profitability is driven by improved and consistent underwriting results with a 5-year average combined ratio of 94.6 percent having benefitted from the enhanced sophistication in risk management. I

 

 

 

Moody’s further noted that Saudi Re strong relationships and detailed local knowledge strengthen its position in its key markets provides a competitive advantage. Saudi Re ’s business mix is well-diversified by line of business and also in terms of geographical mix with nearly 60 percent coming from international markets. 

 

 

 

Fahad Al-Hesni, Managing Director and CEO of Saudi Re, commented: “We are very pleased to receive the A3 rating affirmation, which will enhance our competitive position in our target markets, support our growth plans, as well as instill more confidence in clients, regulators and stakeholders.”

 

 

 

In the insurance sector, credit rating plays a vital role in determining the level of solvency and creditworthiness of a company and its ability to pay claims to policyholders and to fulfill its financial obligations. Furthermore, credit rating supports investors’ decisions as it provides a technical and independent insight into the company's financial performance and strategic approach, as well as risk management and governance.

 

 

 

Saudi Re is a leading reinsurance company in the MENA region, providing risk transfer solutions to insurance companies in more than 40 markets. The company offers treaty and facultative reinsurance solutions in engineering, property, marine, casualty, motor, life and health.  

 

Share:
Print
Post Your Comment
Please write the answer of the below question for security verification.
ADD TO EYE OF Dubai
RELATED NEWS
MOST POPULAR
COVID-19 and the Kingdom’s Power Sector
COVID-19 and the Kingdom’s Power Sector
Sunday 27 September, 2020 3:49