DUBAI (S&P Global Ratings) Oct. 10, 2023--We expect Saudi Reinsurance Co's (Saudi Re's) capital adequacy buffers, as per our models, will strengthen further upon completion of a potential capital injection by the Public Investment Fund (PIF), Saudi Arabia's main sovereign wealth fund.
On Oct. 8, 2023, Saudi Re announced the execution of a non-binding memorandum of understanding with the PIF, whereby the PIF intends to subscribe to new cash shares representing a significant minority in Saudi Re by way of capital increase. While the information available at this stage, specifically on the size of the transaction and the utilization of these fresh funds, is limited, we expect PIF's potential investment will have a positive effect on Saudi Re's overall capital position.
This report does not constitute a rating action.
Primary Credit Analyst: | Sachin Sahni, Dubai (971) 4-372-7190; sachin.sahni@spglobal.com |
Secondary Contact: | Emir Mujkic, Dubai + (971)43727179; emir.mujkic@spglobal.com |
Additional Contact: | Insurance Ratings EMEA; Insurance_Mailbox_EMEA@spglobal.com |
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