Saudi Reinsurance Company’s Profits Decline by 8.9% in Q3
Saudi Reinsurance (Saudi Re) has experienced a decline in net profit by 8.9% in the third quarter of 2023, amounting to SAR 39.58 million before Zakat and tax, compared to SAR 43.46 million in the same quarter of the previous year. This downturn is primarily attributed to increased reinsurance servicing expenses. However, despite the decline in profits, the company’s Gross Written Premium (GWP) grew by 21% to SAR 335.99 million, indicating a positive trend in revenue from insurance premiums.
Saudi Reinsurance Nine-Month Performance and Shareholders’ Equity
Looking at the first nine months of 2023, Saudi Re’s net profit before Zakat and tax surged by 55% to SAR 121.51 million, up from SAR 78.35 million in the prior-year period. This significant increase is due to a decrease in reinsurance servicing expenses and a considerable rise in net investment income, which overturned a net loss from the previous year. Furthermore, the total shareholders’ equity of the company also increased to SAR 1.12 billion as of September 30, 2023, from SAR 996.35 million at the same time the previous year, marking a solid increase in the company’s financial stability.
Saudi Reinsurance Earnings Per Share
Earnings per share (EPS) for the nine-month period also reflected growth, with a 55.3% increase to 1.18 Riyals per share, up from 0.76 Halala per share in the previous year. This performance indicator suggests that shareholders are gaining more earnings for each share they own, which is an encouraging sign for investor confidence.
This expanded article provides a more comprehensive view of Saudi Re‘s financial performance, highlighting the challenges faced in the third quarter but also the broader positive trends over the nine-month period.
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