The Public Investment Fund acquires 23.08% of “Reda” #Urgent

Today, the Public Investment Fund acquired a 23.08% stake in the shares of the Saudi Reinsurance Company, by subscribing to new shares issued by the company to increase capital while suspending the priority right, in accordance with the regulations of the Capital Market Authority.
The investment aims to increase Re’a’s growth opportunities by raising its financial capabilities and enhancing its credit rating.

Support the insurance sector

The Fund’s investment also contributes to supporting the efforts of insurance sector companies, by enabling “Re” to implement high-quality reinsurance activities that allow these companies to manage risks more effectively, provide adequate coverage for their policyholders and reduce the fluctuation of their returns, in addition to promoting growth and innovation. .
The deal is expected to contribute to retaining more reinsurance premiums within the Kingdom, and will support the growth of the local reinsurance sector and enhance coverage of commercial activities, thus increasing the financial flexibility of the economy.
In addition, the company will have capital that will enable it to keep pace with the rapid growth in demand, in addition to enabling it to launch new products and have the ability to expand in local and international markets.
Sultan Al Sheikh, Director of the Financial Institutions Sector at the General Administration of Investments in the Middle East and North Africa at the Public Investment Fund, said: “The Fund aims, through its investment in (Re) to strengthen the strength of the leading company regionally, in addition to strengthening the insurance sector in the Kingdom, which is an element This is key to achieving sustainable economic growth. The deal contributes to facilitating the access of insurance companies and their policyholders to high-quality financial services, thus increasing the growth of the sector.”
Ahmed Al-Jabr, CEO of the Saudi Reinsurance Company (Rea), said: “We welcome the entry of the Fund as a strategic investor and look forward to its role in enabling the company’s strategy, strengthening its position as a national reinsurer, and continuing to strengthen its presence regionally and internationally. Also, entering the Fund will provide multiple benefits to the company, including supporting the financial position.” “For the company and its opportunities for expansion and growth.”
“Re” is a leading reinsurance company in the Middle East and North Africa region, and “Re” has a credit rating of A- from Standard & Poor’s and A3 from Moody’s.
The total written premiums reached 1.94 billion riyals during the first nine months of the year 2024, and the company recorded a compound growth rate of 17% for the past five years until the end of the fiscal year 2023.
It is noteworthy that the completion of the investment deal came after the issuance of the required regulatory approvals from the relevant authorities and the shareholders’ approval issued during the extraordinary general assembly of the “Read” company.