Saudi Re reports 282% rise in net profit for 2024

Saudi Re has reported net profit after zakat (a religious obligation for all Muslims who meet the necessary wealth criteria) of SAR 475 million for 2024, reflecting a 282% increase from 2023, driven by improved underwriting results.

During the year, the reinsurer’s underwriting results improved significantly, with net reinsurance results increasing by 19% year on year.

Further, gross written premiums (GWP) increased by 48% to SAR 2.36 billion, driven by growth across all lines, locally, and internationally.

Despite unprecedented incidents related to natural disasters and other events in 2024, Saudi Re explained that it has managed to maintain portfolio profitability and operational sustainability.

Saudi Re’s earnings per share (EPS) for 2024 is reported at SAR 5.33, meanwhile, net investment income rose by 629% to SAR 440 million, supported by Saudi Re’s divestment from the stake in Probitas Holdings (Bermuda) Limited, which delivered solid investment returns.

Following this result, the Board of Directors has recommended increasing capital from SAR 1.158 billion to 1.698 billion, a 46.6% increase.

The increase will be through capitalising SAR 539.8 from the retained earnings and distributing 51.480 million shares by granting 4 shares for each 9 shares and allocating an additional 2.5 million shares for establishing its employee long-term incentive plan, explained the reinsurer.

Saudi Re maintained a strong financial position in 2024, as shareholders’ equity increased by 41%, a strong credit rating was preserved, and adequate technical reserves were maintained.

Ahmed Al-Jabr, Chief Executive Officer, Saudi Re, commented, “2024 was an exceptional year in terms of results as it recorded the highest level of revenue and profit, while advancing in executing key milestones in its strategy paving the way for a new phase of growth.

“In 2024, we successfully concluded PIF investment transaction in Saudi Re as an anchor investor. Building on our commitment to achieving strategic objectives and enhancing shareholder value through strong financial performance and sustainable growth, the Board of Directors has recommended to grant bonus shares to the shareholders.”

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