Saudi Reinsurance Company (Saudi Re) on Sunday announced its financial results for the first half of the current financial year 2022 with improved operating results by 8% compared to the previous year registering SR 24 million ($6.39 million).

The Company recorded gross written premium (GWP) of SR 920 million ($244.95 million) compared with SR 955 million ($254.27 million) in the similar period of the previous year. This was propelled by a staggering growth in the second quarter with a rate of 166 per cent recording a GWP of SR 321 million ($85.26 million).

The systemic volatility caused by increased interest rates and foreign currency fluctuations, affected the bottom line and resulted in a decline in net profit before zakat by 62 per cent recording SR 14 million ($3.72 million) for the first half of 2022.

Commenting on the first half results, Saudi Re MD & CEO, Fahad Al-Hesni noted that Saudi Re has maintained a well-balanced underwriting portfolio with 52 per cent international business, while keeping focus on risk selection which reflected positively on the underwriting performance. He further highlighted the strong growth of Saudi Re’s recent product, the inherent defects insurance (IDI), and recorded GWP of SR 223 million ($59.37 million) which indicates positive prospects for growth given that Saudi Re holds the privilege to exclusively reinsure the mandatory IDI program.

The Kingdom’s sole reinsurer received the Central Bank’s (previously known as SAMA) approval to increase capital to SR 1.334 billion ($355.18 million) through right issue offering for the purpose of strengthening the company’s capital base and supporting future expansion initiatives domestically and internationally as part of its Strategy Toward 2026.