Saudi Reinsurance Company

Leading reinsurer established in the kingdom, Saudi Re is the pioneer of this business in the local market. Just like direct insurance companies licensed to operate after the establishment of SAMA, Saudi Re is part and parcel of the country’s history.

It is with an extremely high capital, worth over 250 million USD, that the company embarked on the reinsurance market. Unfortunately, the starting year coincided with the outbreak of the global financial crisis. Consequently, the company’s beginnings were all the more difficult. Focused on the local market following its establishment in 2008, Saudi Re has been penalized by the poor results of direct insurance operations.

Despite strong growth in premiums which went more than eightfold within a period of five years (2009-2013), the company has been struggling to report positive results. The year 2013 was particularly disappointing with a net loss of over 26.5 million USD for gross written premiums of 112 million USD.

This poor temporary performance cannot overshadow the significant potential of the local market and the Gulf region in which Saudi Arabia is a major player. With a technical team, accustomed to hardships and a financial capacity rising to its ambitions, Saudi Re has the means to redress the balance and become one of the reinsurance leaders in the Middle East.

Hesham Al-Sheikh F. Abdulrahman Al-Hesni
ChairmanManaging director/CEO

Saudi Re in 2013

Share capital
266 660 000 USD
Turnover
112 020 222 USD
Assets
461 452 733 USD
Shareholder's equity
219 133 728 USD
Net loss
26 573 779 USD
Non life net loss ratio
109.1%
Management expenses ratio
25%
Net combined ratio
134.1%
Number of branches
1 branch in Labuan, Malaysia
Number of employees
47

Board of directors and management

Chairman of the board
Hesham Al-Sheikh
Managing director/CEO
Fahad Abdulrahman Al-Hesni
Chief operating officer
Tarik Aouad
Chief financial officer
Nilmin Pieries
Marketing manager
Ahmed Al Jabr
Chief investment officer
Anirban Kundu

Main technical highlights: 2009-2013

in USD

 20092010201120122013
Gross written premiums
13 613 31528 663 63242 566 22665 418 629112 020 222
Net earned premiums (3)
4 343 21310 799 38224 411 12758 544 891102 882 861
Net earned premiums
2 224 4427 762 20814 637 59142 497 15877 268 086
Non life net earned premiums
2 224 4427 762 20814 012 76340 187 50168 438 305
Life net earned premiums
--624 8282 309 6578 829 781
Net incurred losses
1 353 6525 116 87315 588 57024 625 81580 066 484
Non life net incurred losses
1 353 6525 116 87315 432 10824 227 71474 698 453
Life net incurred losses
--156 462398 1015 368 031
Management expenses (1)
7 048 52012 125 42813 990 21717 973 81327 969 553
Non life net loss ratio
60.9%65.9%110.1%60.3%109.1%
Management expenses ratio (2)
51.8%42.3%32.9%27.5%25.0%
Non life net combined ratio
112.7%108.2%143.0%87.8%134.1%
Net technical result
146 412889 221-5 076 4495 886 986-31 640 394
Net loss/profit
1 287 70515 009-9 149 0357 729 544-26 573 779

1 management expenses = overhead expenses + gross acquisition costs
2 management expenses ratio = management expenses / gross written premiums
3 Net of reinsurance

Evolution of premiums, losses and results: 2009-2013

in thousands USD

Evolution of ratios: 2009-2013

Turnover’s breakdown per class of business: 2009-2013

in USD

 200920102011201220132013 shares
Engineering
3 875 9808 468 33310 387 50916 601 66520 436 37618.2%
Fire
5 740 61012 545 57519 595 26325 529 33342 654 56338.1%
Marine
2 477 4613 381 3615 787 1938 093 31212 169 84210.9%
Motor
804 3992 663 4692 350 0533 262 20513 499 89512.1%
Health
--460 069400 510--
Others
714 8651 604 8942 757 0327 324 5379 576 1318.5%
Life
--1 229 1074 207 06713 683 41512.2%
Total
13 613 315 28 663 632 42 566 226 65 418 629 112 020 222 100%

Turnover’s breakdown per class of business in 2013

Net technical results per class of business: 2009-2013

in USD

 20092010201120122013
Engineering
-25 222543 692232 2801 665 009-3 859 527
Fire
-105 594-687 400-5 652 471-34 911-29 314 751
Marine
65 348421 09894 8162 094 878993 876
Motor
174 978352 767-834 385393 123-322 503
Health
--160 049332 323-
Others
36 902259 064469 492-335 944-2 084 731
Total non life
146 412 889 221 -5 530 219 4 114 478 -34 587 636
Life
--453 7701 772 5072 947 242
Total
146 412889 221-5 076 4495 886 985-31 640 394

Net earned premiums: 2009-2013

in USD

 20092010201120122013
Engineering
409 8481 232 9242 663 8057 880 59810 510 119
Fire
851 4292 876 8965 562 01517 891 31632 531 379
Marine
344 3641 086 6942 197 7695 895 0059 418 954
Motor
502 5622 087 4362 358 5792 433 9838 155 268
Health
--231 291430 927-
Others
116 239478 259999 3035 655 6727 822 585
Total non life
2 224 442 7 762 209 14 012 762 40 187 501 68 438 305
Life
--624 8282 309 6578 829 781
Total
2 224 4427 762 20914 637 59042 497 15877 268 086

Net incurred losses: 2009-2013

en USD

 20092010201120122013
Engineering
268 614376 9481 561 1763 326 69610 028 975
Fire
702 8942 975 8009 548 49612 571 43545 595 253
Marine
118 028346 6981 276 1581 584 6495 331 272
Motor
207 6901 284 8882 713 4881 597 7185 567 088
Health
--68 94296 601-
Others
56 426132 539263 8475 147 2168 175 865
Total non life
1 353 652 5 116 873 15 432 108 24 324 315 74 698 453
Life
--156 462398 1015 368 031
Total
1 353 6525 116 87315 588 56924 722 41680 066 484

Non life net loss ratio: 2009-2013

 20092010201120122013
Engineering
65.5%30.6%58.6%42.2%95.4%
Fire
82.6%103.4%171.7%70.3%140.2%
Marine
34.3%31.9%58.1%26.9%56.6%
Motor
41.3%61.6%115.0%65.6%68.3%
Health
--29.8%22.4%-
Others
48.5%27.7%26.4%89.3%104.5%
Total
60.9% 65.9% 110.1% 60.3% 109.1%

Sources: Figures extracted from the different balance sheets of Saudi Re

Exchange rate
SAR/TND as at 31/12
2009
2010
2011
2012
2013
0.26665
0.26670
0.26669
0.26698
0.26666

Saudi Reinsurance Company

Headquarters
4130 Northern Ring rd. - Exit 7
P Box 300259 - Riyadh 11372 - Saudi Arabia
Tel
+966 11 510 2000
Fax
+966 11 510 2111
E-mail
info [at] kic-kw [dot] com (info [at] saudi-re [dot] com )
Website
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