Saudi Re is a reinsurance company based in Riyadh and operates globally. The company is well recognized for its strong underwriting expertise in Engineering, Property, Marine, Casualty, Motor, Retro, and Life & Medical. Its paid up Capital SR 810 Million (USD 216Million). Saudi Re’s credit rating stands at A3 (Stable) rating by Moody’s.
Fahad ben Abdulrahman Al-Hesni is the Managing Director and Chief Executive Officer of Saudi Re since 2011. He started his career 25 years ago with Tawuniya, the flagship of the Saudi insurance market, where he progressed up the ladder to become Vice President of Property & Casualty (P&C) SBU.
Mr. Al-Hesni is a well-known figure in the insurance and reinsurance market and has been engaged with many industry associations including the Saudi P&C and Reinsurance Market Committees, the Gulf Insurance Federation (GIF), Arab Reinsurers Committee (GAIF), the MENA Insurance CEO Club (MICC), the World Federation of Takaful Insurance Companies, and the International Insurance Society (IIS).
Mr. Al-Hesni serves as board member of Probitas Holdings Bermuda (PHBL) and a board member in Probitas Services 1492 Limited, UK.
Mr. Al-Hesni holds a master’s degree in Insurance & Risk Management from Cass Business School, City University in the UK and an Association degree from the Chartered Insurance Institute (CII) in UK.
He received an undergraduate degree from King Saud University, a graduate degree from City University London and a graduate degree from the University of London.
Saying the above, it is important to know that Saudi Reinsurance Company “Saudi Re” is a Saudi joint stock company, founded in Riyadh in 2008 as the first reinsurance company established in Saudi Arabia.
Publicly Joint Stock Company Listed on the Saudi Exchange Market. Cooperative full-fledged reinsurer.
Saudi Re is the first reinsurance company licensed by the Saudi Arabian Monetary Agency (SAMA) which
Offers facultative and treaty solutions both on a proportional and non-proportional basis.
Saudi Re is currently focusing on non-proportional reinsurance contracts -- which lead to a decrease in its insurance premiums -- as they’re more profitable, despite their affordable premiums.
The company is well recognized for its strong underwriting expertise in Engineering, Property, Marine, Casualty, Motor, Retro, and Life & Medical. Its paid up Capital SR 810 Million (USD 216Million). It has been rated A3 (Stable) rating by Moody’s.
Saudi Re operates under the supervision of SAMA license number TMN/17/20087.
Saudi Re has a diversified portfolio of facultative and treaty proportional and non-proportional business serving clients in more than 40 countries. We aim to develop and grow alongside our clients through building strong and sustainable relationships. The company’s underwriters travel around various markets to meet and interact with clients to develop better insights into their requirements. Being the only homegrown reinsurer, Saudi Re is fully committed towards clients and the market as a whole. Saudi Re enjoys professional relationships with almost all active insurance companies in Saudi Arabia. Saudi Re is exempt from withholding tax which is an advantage when dealing with a domestic reinsurer. Also, the close proximity and specific knowledge in the local risk profile are key factors which make Saudi Re a reinsurer of choice.
Saudi Re has always demonstrated commitment to serving the region. As one of the highest capitalized reinsurer in the Gulf region (Paid-up capital of SAR 810 Million, USD 216 Million), Saudi Re is very well positioned to offer first class security in treaty and facultative in both proportional and non-proportional businesses.
Emerging Markets
Saudi Re writes business in selected markets in Asia and Africa and has developed a range of reinsurance solutions which cater for the conventional and the Takaful and Re-takaful industry. Saudi Re delivers its services directly or through its network of approved brokerage firms. in India, Indonesia, Malaysia, Pakistan, Singapore, South Korea, Turkey and other countries.
Saudi Re aims to grow along with its clients devoting its capabilities and expertise to serve the growth ambitions of its valued clients and enable their progress.
Comprehensive Customer Relationship Management infrastructure that enables high responsiveness to our clients’ requirements. Clients are our most important asset and we invest in keeping continuously awareness of their expectations and help them achieve their aspirations and overcome the challenges.
Our business model is based on involving our underwriters and risk experts in interfacing and collaborating with clients and business partners which provides direct access to decision makers.
Saudi Re aims to grow along with its clients devoting its capabilities and expertise to serve the growth ambitions of its valued clients and enable their progress.
Comprehensive Customer Relationship Management infrastructure that enables high responsiveness to our clients’ requirements. Clients are our most important asset and we invest in keeping continuously awareness of their expectations and help them achieve their aspirations and overcome the challenges.
The company’s business model is based on involving our underwriters and risk experts in interfacing and collaborating with clients and business partners which provides direct access to decision makers.
Saudi Re culture is geared towards maximizing shareholder value by providing superior level of customer service. We have put in place processes to ensure that claims are managed fairly with efficiency and timeliness to achieve higher customer satisfaction.
BL: What is your market share in the Saudi reinsurance sector?
Fahad A. Al-Hesni: Saudi Reinsurance Company (Saudi Re) is the only reinsurer in the Kingdom and our market share currently stands at 6 percent. We have a strong position in the domestic reinsurance sector, thanks to our presence in the Kingdom, high capital adequacy, strong financial flexibility and credit rating. Saudi Re’s strong relationships with customers and brokers based on long-term partnership and mutual interest, coupled with in-depth local knowledge, strengthens our position as a leader in our target markets in Asia, Africa and Lloyd’s.
We expect to see continued growth opportunities in the domestic market, given the improvements in the regulatory environment and strategic initiatives under Vision 2030 that aims to diversify the Kingdom’s economy away from oil.
BL: Why did you reduce Saudi Re’s automotive and healthcare portfolios in Saudi Arabia?
Fahad A. Al-Hesni: Saudi Re continuously reviews its reinsurance portfolios and takes decisions to reduce or write more business in certain lines of business or territories. This is normally influenced by the portfolio performance, exposure, contract terms, commissions, general market conditions etc. In addition, in certain cases of motor and medical business, clients opt for non-proportional reinsurance contracts such as excess of loss, which lead to a decrease in reinsurance premiums vis-a-vis proportional reinsurance contracts such as quota share or surplus.
BL: What is your vision on Saudi Re’s local and Middle Eastern insurance portfolios?
Fahad A. Al-Hesni: Despite the intense competition in the global reinsurance markets and the challenges faced by reinsurance companies, particularly in the emerging markets, Saudi Re reported a solid performance locally, thanks to our status as a leading and largest reinsurance companies in the region and its growing presence in the Middle East, Asia, and Africa.
Saudi Re has steadily grown its international book of business which now accounts for nearly 60 percent from more than 40 countries across the Middle East, Asia, Africa, and Lloyd’s market, which reflects a well-balanced portfolio that reinforces our superior technical performance.
BL: What is Saudi Re’s net profit for 2019 compared to the previous year?
Fahad A. Al-Hesni: In the 9 month period of 2019, Saudi Re achieved growth by 133% as the before Zakat net profit rose to SAR 56 million compared to SAR 24 million for the same period of the previous year. Our underwriting profitability is on track for improvement and well supported by favorable investment yields.
BL: What are the plans for the year 2020?
Fahad A. Al-Hesni: Saudi Re will continue to innovate to maintain a high level of competitiveness and enhance its ability to meet the demands and aspirations of customers, shareholders, and employees on an ongoing basis, in light of the renewed challenges.
Our strategy is focused on increasing the profitable growth, diversification of the sources of revenue and the trends of investment, to achieve sustainable profitability and maximize return to shareholders.
Saudi Re will also continue to focus on improving its technical capabilities which include underwriting, pricing, claims, risks management, actuarial services and technical reserve management as it seeks to capitalize on its capabilities to expand and achieve better profitability rates through a prudent underwriting policy.
BL: During the panel discussion of Sharm El Sheikh Rendezvous, profitability in non-life insurance was discussed in depth, would you provide us with your views?
Fahad A. Al-Hesni: Non-life insurance performance in our region still show humble margins as a result of the state of competition, pricing issues and substandard terms. Reinsurers begun to reduce their participations in certain markets where results are unfavorable and there are no potential for correction in the near future. There are signs for hardening in retrocession markets which find its way to the reinsurance market.
BL: What are your views the Egyptian insurance and reinsurance sector?
Fahad A. Al-Hesni: The Egyptian insurance and reinsurance market is a main market in the Middle East and North Africa (MENA) region. Large infrastructure projects and economic development initiatives will ster growth in the Egyptian market and hopefully performance will improve. There is demand for newer and more specialized insurance products allowing us to bring our expertise to the local market and contribute in their reinsurance protection.
BL: What is your feedback on Sharm El Sheikh Rendezvous 2019?
Fahad A. Al-Hesni: Saudi Re is delighted to sponsor the Rendezvous for the second consecutive time which signifies the high regard we hold for the Egyptian market and the solid relationship we enjoy with the insurance companies in Egypt. This year edition was another success thanks to the tremendous efforts of the Insurance Federation of Egypt. It was a great chance for us to interact with our clients and partners and engage in discussions about means to develop the insurance industry.
BL: What is Saudi Re’s net profit for the 3rd quarter?
Fahad A. Al-Hesni: Thankfully the company recorded a net profit before Zakat of SAR 13 million in Q3 2019 compared to a net profit of SAR 10 million in Q3 2018. The reason for the increase was mainly due to decrease in net claims incurred by 4% and increase in net earned premiums by 8% which had a positive impact on the underwriting results.
As for the result of the 9 month Period of this year, the Company achieved growth by 133% as the before Zakat net profit rose to SAR 56 million compared to SAR 24 million for the same quarter of the previous year.
Fahad Al-Hesni, Managing Director and Chief Executive Officer of Saudi Reinsurance Company, emphasizes that the Company’s positive performance is a reflection of its effective business model and endeavors to improve the financial and operational performance and maximize the shareholders’ value.
