Saudi Re: Strategic PIF Investment to Bolster Insurance Sector

Deal News | Jan 14, 2025 | Zawya

Saudi Arabia's Public Investment Fund (PIF) has acquired a 23.08% stake in Saudi Reinsurance Company (Saudi Re) through a capital increase and share subscription. This strategic move aims to bolster the country's insurance sector by increasing Saudi Re's capacity and credit rating. The total investment amounts to SAR 427.68 million, with a subscription price of SAR 16 per share for 26.73 million new shares. The reinsurer holds an A-minus rating from S&P and an A3 from Moody's, and the investment is expected to enhance access to financial services in the region.

Sectors

Insurance
Investment

Geography

Saudi Arabia – The main focus of the article is on Saudi Arabia's insurance market and the investment activities by the country's sovereign wealth fund.

Industry

Insurance – The article focuses on the insurance sector, specifically reinsurance, with PIF's investment in Saudi Re aimed at strengthening this industry in Saudi Arabia.
Investment – The involvement of Saudi Arabia's Public Investment Fund signifies strategic investment activity aimed at enhancing financial sector robustness.

Financials

SAR 427.68 million – The total investment amount by PIF for acquiring a 23.08% stake in Saudi Re.
SAR 16 per share – The subscription price per share for the investment made by PIF in Saudi Re.

Participants

Name	Role	Type	Description
Public Investment Fund (PIF)	Investor	Government	Saudi Arabia's sovereign wealth fund responsible for investing in strategic sectors to strengthen the nation's economy.
Saudi Reinsurance Company (Saudi Re)	Target Company	Company	A reinsurance company operating in Saudi Arabia targeted for investment by PIF to enhance its capabilities and the overall insurance sector.
Sultan Alsheikh	Head of Financial Institutions in MENA Investments at PIF	Person	A key spokesperson from PIF highlighting the strategic importance of the investment in Saudi Re.