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8200
Governance: B

SAUDI RE

SAUDI RE

25.82 SAR / Share

As of: May 28, 2026

29.0x P/E Ratio Trailing 12 Months
2.0x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
4.38B SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
27.0% Net Margin Net Profit / Revenue

Company Profile

Saudi Reinsurance Company (Saudi Re) is a Saudi Joint Stock Company headquartered in Riyadh, Saudi Arabia, with a branch in Labuan, Malaysia. The company transacts cooperative reinsurance and related activities both inside and outside the Kingdom. Its business is segmented into Property & Casualty (P&C) and Life & Health (L&H) lines, with operations in both local and international markets. As of March 31, 2026, the Public Investment Fund (PIF) is a major shareholder, holding 38,609,700 shares (approximately 22.7% of capital). The company maintains collateralized participation in Lloyd's Syndicates and is subject to regulation by the Saudi Insurance Authority, where it maintains a statutory deposit of 10% of its paid-up capital.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-07)
Shares Outstanding 169.81M
Market Cap 4.38B
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Saudi Re serves as the foundational reinsurance backbone in the Saudi market, absorbing large-scale risks and stabilizing primary insurers through its robust capital base.

Source: Q1 2026 (2026-05-07)

Value Creation -1.9% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)
Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price
—
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+25.0%
Payout Ratio Percent of net profits distributed as dividends
—
Net Margin Net profit margin generated from total operational revenue
27.0%
ROE Return on Equity
6.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
29.0x
P/B Ratio Market capitalization compared to corporate book value
2.0x
Combined Ratio Operating multiple reflecting core operational leverage
89.9%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Saudi Re's growth trajectory is anchored by its position as the premier domestic reinsurer, translating into a substantial Gross Written Premium of SAR 2.4B and an IFRS 17 Insurance Revenue of SAR 1.9B. This top-line performance reflects its critical role in absorbing local and regional risks. The company's sustainable growth rate is positioned at 25.00%, supported by a sustainable ROE of 3.39%. This growth is driven by expanding market penetration and the increasing demand for local reinsurance capacity in Saudi Arabia, allowing Saudi Re to scale its premium base while maintaining its strategic alignment with the Kingdom's broader economic expansion.

Profitability Dynamics

Profitability at Saudi Re is underpinned by strong underwriting discipline, demonstrated by a highly favorable combined ratio of 89.89%, indicating that its core reinsurance operations are highly profitable. This underwriting success translated into a Net Income of SAR 151M. However, the company's Return on Equity stands at 6.77%, which currently trails its estimated Cost of Equity of 8.70% (derived with a Beta of 1.0038). This gap suggests that while underwriting operations are highly efficient, the overall return is partially constrained, highlighting the critical role that investment income from its SAR 3.2B investment portfolio must play in bridging the spread to fully cover the cost of capital.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index
1.00
Cost of Equity Minimum required rate of return demanded by shareholders
8.7%
Combined Ratio Underwriting cost efficiency margin (Claims + Expenses) / NEP
89.9%
Loss Ratio Net claims incurred relative to net earned premiums
—
Expense Ratio Acquisition and general admin costs relative to net earned premiums
—
Retention Ratio Proportion of gross written premium retained by company
91.1%

Risk Factors

From a risk and solvency perspective, Saudi Re maintains a highly conservative and liquid balance sheet, with total assets of SAR 4.7B heavily anchored by an investment portfolio of SAR 3.2B. This liquid asset base provides a strong cushion against its insurance contract liabilities of SAR 2.1B. Backed by SAR 2.2B in total equity, the company is well-positioned to meet SAMA's stringent regulatory solvency requirements. As a reinsurer, its risk profile is inherently tied to systemic accumulation risks and catastrophic events, but its robust capital structure and prudent retrocession arrangements serve to mitigate these high-severity exposures, ensuring long-term operational resilience.

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