Moody’s upgrades Saudi Re to A2, outlook stable

In a statement to Tadawul, Saudi Re said the upgrade, as per Moody’s announcement dated April 23, reflects several factors supporting Saudi Re’s financial strength. Key among these factors is the improvement in Saudi Re’s business and financial profile following the acquisition of a significant minority stake by Saudi Arabia’s Public Investment Fund (PIF).

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This strategic investment, coupled with the implementation of enhanced regulatory frameworks, placed Saudi Re in a strong position to enhance its market position, and support future growth within the Kingdom.

The report also highlighted the continued benefit Saudi Re is expected to derive from the broader diversification and sustained growth of the Saudi economy. Government-led initiatives aimed at strengthening the domestic insurance sector further reinforce this favorable outlook for the company.

Despite ongoing global macroeconomic uncertainties and market volatility, Saudi Re’s profitability is anticipated to remain robust over the next 12 to 18 months.

This strength will be driven by solid underwriting performance and steady investment returns. Additionally, the company’s geographic diversification and development of new products are expected to enhance its resilience and contribute positively to long-term sustainability.

The stable outlook assigned by Moody’s reflects the agency’s expectations that Saudi Re will maintain strong underwriting and solid profitability, while also preserving robust capital adequacy and high-quality assets.