Saudi Re maintains AA+ financial rating by Tassnief, outlook stable

Saudi Re for Cooperative Reinsurance Co. (Saudi Re) maintained an AA+ Insurance Financial Strength Rating (IFSR) by SIMAH's credit rating agency, Tassnief, with a stable outlook.

The company said in a bourse statement that the rating reflected its strong brand strength, risk profile and competitive advantage in the Saudi market and incorporated the strength of the business profile.

It also highlighted having a well-established franchise in the key targeted markets that the company operates in, as well as the improved level of diversification for the international business.

The rating incorporated the company’s leverage free balance sheet, strong risk adjusted capitalization levels, healthy liquidity buffers and improved underwriting performance.

The rating is underpinned by Saudi Re’s strong corporate governance framework and sound risk management practices.

The rating also noted improving operating environment due to better pricing dynamics (market hardening after a lengthy soft cycle), particularly for loss making segments.