(MENAFN - Arab News) Standard & Poor's (S&P) has affirmed Saudi Re's financial strength rating at BBB with a stable outlook.
S&P expects that Saudi Re will gradually prove successful in establishing a good and diversified competitive position in Saudi Arabia, the GCC, and beyond, while generating sufficient revenues to cover costs, and is likely to continue to display tangible progress in the development of its competitive position.
Saudi Re's strength factors, in the view of S&P, included the strong capitalization of Saudi Re making it one of the most strongly capitalized out of all Middle East and North Africa (MENA) regional reinsurers.
According to S&P, Saudi Re possesses an absolute level of capitalization that ranks it as one of the leaders in terms of overall capacity among Middle Eastern regional re-insurers, and its board of directors has the vision to grow its business stature accordingly in the medium term.
Despite continued competition from regional and global reinsurers, S&P anticipates that Saudi Re will differentiate itself sufficiently from other reinsurers to win an increasing share of the steadily growing Saudi Arabian, GCC, and broader emerging markets' demand for reinsurance protection.
Fahad Al-Hesni, CEO of Saudi Re, said: "Preserving the rating for four years in a row is indicative of Saudi Re's sound business strategy and fosters our reputation for being a reliable business partner in the eyes of our valued clients".
Saudi Re is the first licensed reinsurance company in Saudi Arabia established in 2008 with a paid capital of SR 1 billion ( 267 million).
In 2011, Saudi Re achieved growth of 49 percent in gross written premium and currently serves clients in more than 20 countries in the Middle East, Africa and Asia.