Saudi Arabia’s Public Investment Fund (PIF) has completed the acquisition of a 23.08% stake in Saudi Reinsurance Company (Saudi Re).
The investment is aimed at expanding Saudi Re’s domestic capacity to support the country’s growing insurance market and strengthen the broader insurance sector in the kingdom.
According to PIF, the capital injection will enable Saudi Re to deliver more advanced reinsurance solutions and provide insurance companies with improved risk management capabilities. This move is expected to help insurers offer broader coverage to policyholders while managing earnings volatility.
In a report from Gulf Business, PIF said that a more well-capitalized Saudi Re will be better positioned to meet the increasing demand for reinsurance services and develop new products. The additional capital is also expected to support Saudi Re’s expansion in both domestic and international markets.
First announced in July 2024, the investment is projected to increase the retention of reinsurance premiums within Saudi Arabia, contribute to the growth of the local reinsurance industry, and improve commercial insurance coverage for businesses.
Founded in 2008, Saudi Re holds investment-grade ratings of A- from S&P Global and A3 from Moody’s. The company reported total written premiums of US$520 million (SAR1.94 billion) during the first nine months of 2024. Saudi Re achieved a compound annual growth rate of 17% over the five years ending with the 2023 financial year.
Sultan Alsheikh, head of Financial Institutions in MENA Investments at PIF, said the fund’s investment in Saudi Re supports the development of a leading regional reinsurer and strengthens Saudi Arabia’s insurance industry.
“This enhances access to quality financial services for insurers and their policyholders and strengthens the sector,” Alsheikh said.
PIF’s involvement aligns with Saudi Arabia’s broader strategy to diversify its economy beyond oil revenues. Central to this strategy are efforts to develop new industries and invest in infrastructure, initiatives led by Crown Prince and Prime Minister Mohammad bin Salman.
PIF holds stakes in several global firms, including ride-hailing company Uber Technologies, English Premier League club Newcastle United, and electric vehicle manufacturers Lucid and Ceer.
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