The Public Investment Fund announced today, Monday, that it has acquired a stake of 23.08% in Saudi Reinsurance Company (Re), through subscribing to new shares issued by the company to increase the capital, while suspending the right of priority, in line with the Capital Market Authority (CMA) regulations.
Public Investment Fund (PIF) said in a statement. <The Fund explained in a statement that this investment aims to enhance Re's growth opportunities by improving its financial capabilities and enhancing its credit rating. The investment also contributes to supporting the efforts of insurance sector companies, by enabling Re to carry out high-quality reinsurance activities that help these companies manage risks more effectively and provide adequate insurance coverage for policyholders, which contributes to reducing the volatility of returns and increasing growth and innovation in the sector.
The Public Investment Fund indicated in a statement that this investment aims to enhance Re's growth opportunities by improving its financial capabilities and enhancing its credit rating. <PIF noted that this transaction will contribute to retaining more reinsurance premiums within the Kingdom, thereby enhancing the growth of the local reinsurance sector. It will also support the coverage of commercial activities, contributing to the financial resilience of the national economy. He added that the capital will enable Re to keep pace with the accelerating demand for its services, in addition to enabling it to introduce new products and expand its business in local and international markets.
He added that the new capital will enable Re to keep pace with the accelerating demand for its services. <Commenting on the transaction, Sultan Al Shaikh, Director of Financial Institutions in the Public Investment Fund's Middle East and North Africa Investments Department, said: “Through its investment in Re, PIF aims to consolidate its position as one of the leading companies in the region and strengthen the Kingdom's insurance sector, which is an essential part of achieving sustainable economic growth. This transaction also facilitates access to high-quality financial services for insurers and policyholders, thereby boosting the sector's growth.”
