OVERVIEW
ESG REPORTCORPORATE GOVERNANCE

Standing tall and steadfast, Saudi Re has cultivateda legacy rooted in trust and unwavering stability overan illustrious 15-year journey. Just as a tree’s foundation
is nurtured by years of resilience, our growth has been
fortified by a sound framework, allowing us to navigate
the challenges of our industry and emerge even stronger.
Like branches outstretched towards new horizons andopportunities, Saudi Re reaches new heights throughexpansion, partnership, and innovation. Amidst thisgrowth, we remain deeply anchored to our core values,
serving as a beacon of reliability in an ever-evolving
landscape. With each passing year, we continue to grow,evolve, and adapt, positioning ourselves not only as
leaders in our domain but also poised and ready fora promising future.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

15 Years of Progress

2

Contents

04

04 About this report

BUSINESS CONTEXT,STRATEGY AND PERFORMANCE

05 About Saudi Re

20 Market Review

10 Our Growth JourneyOver 15 Years

25 Strategic Direction

OVERVIEWDIRECTORS’ REPORT 2023

12 Chairman’s Statement

S A U D I R E I N S U R A N C E C O M PA N Y

1915 Chief Executive
Officer’s Review

30 Financial Review

43 Sustainability Strategy

72 Governance48 Sustainability Performance

108 Risk ManagementESG
REPORT

CORPORATEGOVERNANCEOVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE71

ESG REPORT42

CORPORATE GOVERNANCE

3

4

1. About this Report
Saudi Re’s Annual Report for 2023 adheres to theprinciples of Integrated Reporting, maintaining
its established practice of presenting a Financial
Report, a Sustainability Report, and a Directors’
Report. The primary aim of this report is to provide a
concise overview of Saudi Re's strategy, governance,
performance, and outlook in the context of theoperational environment.
1.1 REPORT BOUNDARY
Unless explicitly stated otherwise, this reportencompasses the operations of Saudi Re. The financial
reporting boundary comprises Saudi Re and its affiliatedcompanies.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

1.2 REPORTING PERIODThis report covers the period commencing 1 January 2023,
and concluding 31 December 2023. It is in alignment
with Saudi Re’s previous practices for financial andsustainability reporting, in addition to the Directors’
Report. No restatements of previously provided
information are presented, and are no noteworthy
alterations in the scope or aspect boundaries fromprevious reports. The Directors’ Report, Sustainability
Report, and Financial Report presented here all pertain
to the fiscal year concluding on 31 December 2023.
Saudi Re’s Annual Report for 2023 is presented inboth English and Arabic; in the event of any disparities
between the two versions, the Arabic version will takeprecedence.

1.3 COMPLIANCE
The Report has been prepared in compliance with allapplicable rules, regulations, and standards of the
Insurance Authority (IA), the Capital Market Authority(CMA), and the Ministry of Commerce (MOC), and otherregulatory bodies.
1.4 FINANCIAL STATEMENTS
The financial statements for the fiscal year ending
31 December 2023, conform to the International
Financial Reporting Standards (IFRS) adopted within theKingdom of Saudi Arabia (collectively known as IFRS
endorsed in KSA). Additionally, these statements adhere
to other standards and directives issued by the Saudi
Organization for Certified Public Accountants (SOCPA).
1.5 QUERIES
Investor Relations Department
Address: 4130 Northern Ring Rd, Al Wadi,
Riyadh 13313, Saudi Arabia
Email: Invest@saudi-re.com
Phone: +966 11 510 2000 Ext: 181
Website: www.saudire.net
IR App: IOS-Android

5

OVERVIEW

2. About Saudi Re
2.1 WHO WE ARE

Established in 2008, Saudi Re is the sole licensed andspecialized reinsurance company in The Kingdomof Saudi Arabia and Among the top performing
reinsurance companies in MENA region, functioning
under the regulatory oversight of the Insurance Authority(IA) that provides reinsurance solutions in various linesof business. We operate in a G20 economy, which boasts
one of the world’s most rapidly expanding insurance
markets, offering us substantial prospects
for advancement and growth.
Being a publicly listed company on the Saudi stock
exchange and boasting a diverse investor base,
Saudi Re is strategically positioned to chart a sustainable
path of growth, ensuring its long-term success within the
dynamic reinsurance industry.

S&P Global
Capital Adequacy
above S&P’s “AAA” level

In 2023, Saudi Re maintained a rating of “A-” for its
long-term issuer credit and insurer financial strength.
Furthermore, the Company continued to hold a “gcAAA”
regional scale rating, with a stable outlook, as assessedby Standard & Poor’s Global Ratings (S&P). Additionally,of capital adequacy levels continued to surpass the“AAA” threshold within S&P’s assessment model.
Moody’s reaffirmed Saudi Re’s rating at A3 Insurance
Financial Strength Rating (IFSR) on the international
scale and at A1.sa on the national scale IFSR, with apositive outlook.
The Company’s robust financial ratings can be attributed
to multiple key factors: strong brand presence, leading
market position in Saudi Arabia, the Company’s
expanding footprint in strategic markets, including Asia,

ESG REPORTBest Reinsurance Co
3rd year in a row by
MENA IR

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

A3 rating & A1.sa
National rating
by Moody’s(Positive Outlook)A- rating & gcAAA
regional scale ratingby Standard & Poor’s
S&P (Stable Outlook)

CORPORATE GOVERNANCE

Ranked 15th for
ESG performance andbest practices amongst
listed companies

The Kingdom’s solespecialized & licensed
reinsurance company

2. About Saudi Re
Gross Written Premium (GWP)(SR million)
1,600
1,280
960

2019

2020

DIRECTORS’ REPORT 2023
S A U D I R E I N S U R A N C E C O M PA N Y

2021

Saudi Re places a strong emphasis on fosteringclient relationships, via direct and broker channels.
These relationships are managed by marketbased underwriting teams, supported by a robust
technological and analytical infrastructure. The
Company’s underwriting proficiency, coupled withformidable analytical and actuarial capabilities,
contributes to prudent risk assessments and pricing
strategies. Additionally, Saudi Re has cultivated valuable
partnerships with retrocession reinsurers, which play apivotal role in mitigating risks in the event ofcatastrophic events.

2022

2023

Total Gross Written
Premium (GWP) in 2023

SR 1,597 million
KSA

SR 783 million
International

Saudi Re specializes in providing facultative and treaty
reinsurance solutions across a range of insuranceclasses, including property, engineering, liability, marine,
motor, life, and health. The Company remains committed
to advancing Saudi Arabia’s Vision 2030 objectives
by actively contributing to the growth of the non-oil
sector and non-oil exports. Moreover, Saudi Re aims toenhance the localization of reinsurance activities andensure premiums remain within the Kingdom.

1,597

0

In the development of strategies and policies, Saudi Re
adheres to a sustainability framework that aligns with
globally recognized standards. This comprehensive
approach ensures the integration of Environmental,
Social, and Governance (ESG) principles andsustainability mandates throughout all areas of theCompany’s operations. Saudi Re is a Sharia-compliant
company.
2.2 WHAT WE DO

1,403

320

1,116

640
935

Africa, and Lloyd’s. Saudi Re’s financial strength isunderpinned by: a strong asset portfolio, sound capital
adequacy levels, and financial flexibility. Notably, thecompany also maintains a conservative investment
portfolio, has low exposure to natural catastrophe risks,and maintains non-existent leverage with favorable
access to capital markets in Saudi Arabia. Additionally,
Saudi Re benefits from a unique advantage within the
Saudi market – a right of first refusal on a portion ofpremiums ceded by primary carriers. These factors play
pivotal roles in shaping its positive rating.

793

6

SR 814 million

7

OVERVIEW

2. About Saudi Re
2.3 OUR MARKET PRESENCE

Total
2023 –SR 627,187
2022 – SR 696,998

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCEREINSURANCE REVENUE GEOGRAPHICALDIVERSIFICATION (SR ’000)

ME
2023 –

SR 67,953

Asia
2023 –

2022 – SR 82,534

2022 – SR 201,319

KSA2023 –

Other Territories
2023 –SR 216,821

SR 129,173

ESG REPORTSR 196,874

2022 – SR 255,592

2022 – SR 125,043

SR 16,366
2022 – SR 32,510

CORPORATE GOVERNANCE

Africa2023 –

8

2. About Saudi Re
2.4 VALUE DRIVERS: 2023 AT A GLANCENET PROFIT

2023

2023

SR 124.43 million

SR 85.14 million

51%

2022 – SR 76.05 million

2022 – SR 85.07 million

2022 – 44%

SHAREHOLDERS’ EQUITYCOUNTRIES IN OPERATION

2023

2023

2023

SR 2,690 million

SR 1,147 million

40+2022 – SR 2,256 million

2022 – SR 1,017 million

2022 – 40+

GROSS WRITTEN PREMIUM (GWP)

DIRECTORS’ REPORT 2023

INTERNATIONAL BUSINESS

2023

TOTAL ASSETSS A U D I R E I N S U R A N C E C O M PA N Y

UNDERWRITING RESULTSCOMBINED RATIO

2023

2023

SR 1.5 billion

84.38%

2022 – SR 1.4 billion

2022 – 92.21%

EARNINGS PER SHARE

ROE

2023

2023

SR 1.40

12.23%

2022 – SR 0.852022 – 7.96%

CREDIT RATINGS

A- S&P & A3
Moody’s

9

OVERVIEW

2. About Saudi Rez

Saudi Re took third place for Best IR Reportingin the Digital Category, at the 2023 Middle East
Investor Relations Association (MEIRA) Awards.

z

In 2023, Saudi Re was recognized as General
Reinsurance Company of the Year, for the third
consecutive year.

z

Ranked 15th for ESG performance and bestpractices amongst listed companies.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

2.5 AWARDS AND RECOGNITION

2.6 FINANCIAL SUMMARY

Reinsurance revenue

627,187,025

696,997,918

Reinsurance service expenses(509,774,279)(591,168,190)

Net income/expenses from retrocession contracts

2,349,500(22,240,463)

Reinsurance service result

119,762,246

83,589,265

Net investment income

60,387,647

8,379,423

Net financial result

25,762,001

9,863,817

Net insurance and investment result

145,524,247

93,453,082

Net Income for year before zakat & tax

158,562,123

91,317,887

EPS
Total Comprehensive income for the year
Total shareholders’ equity

1.40

0.85

126,444,998

59,046,824

1,146,822,039

1,017,183,510

ESG REPORT

31 December 22

CORPORATE GOVERNANCE

31 December 23

10

3. Our
JourneyOver 15 OverYears 15 Years
3.
OurGrowth
GrowthJourney
In 2008, the seeds for fruitful endeavor were sown. Saudi Reinsurance Co.,embarked on a remarkable journey by finding our roots in the domestic
market. This initial phase allowed us to establish a presence within theKingdom of Saudi Arabia, while laying a foundation that would support
our future reach towards expansive horizons.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Fueled by foresight and financial strength, our growthhas been characterized by proactive investment. We
have consistently channeled resources into cultivating
our internal capabilities, fortifying our operational
infrastructure, and broadening our service offerings. Thisintentional approach not only cemented our position asa market leader but also paved the way for a blossoming
portfolio, catering to evolving client needs in a dynamic
landscape.
Our success stems from our ability to adapt and respondto the ever-shifting winds of the reinsurance industry.
As a testament to our flourishing, our reach now extends
beyond our national borders. We have strategicallyunfurled our branches across diverse regions, including
the Middle East, Africa, and Asia. Furthermore, ourcollaboration with the prestigious Lloyd’s Market in the
UK symbolizes our aspiration to become a prominent
player on the global stage.

Today, we stand as the sole specialized Reinsurance
Company in the Kingdom and rank among the top
performers in the MENA region, demonstrating the depthof our roots and flourishing presence within the industry
ecosystem. In 2023, our dedication to ESG principles wasreflected in our rankings. Saudi Re placed 15th among all
listed companies on Tadawul and achieved the top spot
amongst Saudi insurance companies. This achievement
serves as a testament to the fruits borne from ourcommitment to excellence, innovation, and client-centricity.
As we reflect on our achievements, our resolve remains
steadfast: to explore new frontiers, embrace budding
opportunities, and strengthen our legacy of leadership anddistinction within the reinsurance landscape.

Further expansion ofinternational operations
by expanding to Asia.

2012
Saudi Re was founded In
2008 and listed on the Saudi
Exchange Market as the first
Saudi reinsurance company.

2008

Saudi Re’s first step toward
international operations withexpansion into the MENA region.

2009

Obtained first credit rating
at BBB+ with a stable
outlook from Standard
and Poor’s (S&P).

2010

2011

Defined a new strategy aimed
at positioning Saudi Re asa multi-national player.

Acquired 49.9% of
the shares of Probitas
Holdings (Bermuda)
Limited, which invests
in Probitas Syndicate
1492, a syndicate of
Lloyd’s at London
specializing in property,
construction andcasualty (re)insurance
solutions.

11

OVERVIEW

3. Our Growth Journey Over 15 Years
Moody’s assigns Saudi Re its insurance
financial strength rating of A3, with stable
outlook; indicating robust asset quality with aconservative investment portfolio, and strong
capital adequacy and financial flexibility.

2017

Saudi Re achieved a significant milestone
with international business from 40+ markets
representing 60% of the overall portfolio.

2016

2015

2019
2020
Increased capital to SR 891 million, converted
SR 81 million of retained earnings into capitalthrough a 1-for-10 bonus share distribution;
which strengthened Saudi Re’s capital baseand supports expansion plans for better
returns and greater shareholder value.

Participation as athird party capitalprovider in the Lloyd’sMarket, the world
largest insurance
market.

2021

Saudi Re obtained
exclusive rights/
privilege to act as
the lead reinsurer for
the Saudi Arabian
Inherent Defects
Coinsurance Programfor five years.

ESG REPORT

Saudi Re continued
to scale, reaching
the SR 1 billion
GWP milestone.

2022
2014

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

2018

2023

2013

Strengthened technicalreserves to align with theCompany’s expansion plans.

S&P noted that Saudi Re
continued to strengthen
its competitive position via
profitable business growthand diversification in recent
years, thanks to local andinternational expansion. At thesame time Saudi Re’s exposure
to catastrophe and other large
risks is relatively modest andthe company maintains capital
adequacy above the “AAA”
level in S&P model.

Signed a non-binding Memorandum ofUnderstanding (MoU) with the Public
Investment Fund (PIF), paving the way for
PIF to become a strategic shareholder.
Saudi Re was ranked 15th for
ESG best practices amongst listedcompanies in the Saudi Arabian financial
market (Tadawul). The Company
continues to be the highest-rated insurer,
with an ESG ranking surpassing lastyear’s performance.

CORPORATE GOVERNANCE

Opening of Saudi
Re’s first branchoutside Saudi Arabia– in Malaysia tosupport expansion in
the Asian market.

12

4. Chairman’s
Statement
4.
Chairman’s
Statement

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Continuation of the profit pace by achieving
SR 124.4 million, an increase of 64%.

The newly established Saudi Insurance Authority (IA)
officially commenced operations on November 23, 2023,
functioning as an independent regulator. With a mission
to regulate the insurance sector in the Kingdom, the IAaims to enhance its efficiency and stability, aligning withthe objectives of Saudi Vision 2030. Among its goals,
the Authority will regulate and supervise the insurance
sector, safeguard the rights of policyholders, establish
principles of insurance contracts, promote innovation ininsurance products, and elevate insurance awareness.
Furthermore, the IA is expected to focus on enhancing
competitiveness to improve service quality and create an
appealing investment environment, thereby supporting
the insurance sector's role in the national economy.
Existing regulations, rules, and instructions pertaining
to the insurance sector will remain in effect until further
directives are issued. Current insurance policies, claims,
channels, and operations will continue uninterrupted, in
accordance with relevant regulatory provisions.

4.1 A STRATEGIC OUTLOOK
Saudi Re's robust performance and resilience during
challenging periods reflect the effectiveness of ourstrategy, which is based on key factors such as theevolving (re)insurance regulatory landscape, global
reinsurance trends, the goals of the Kingdom’s Vision
2030, and the creation of shareholder value. Our
refreshed strategic approach “Strategy Towards 2028”,
provides a blueprint that will enable the company to play
an anchoring role in domestic retention while driving
innovation to assess and adapt to new and emerging
risks in local and international markets.
Diversification remains a cornerstone of Saudi Re’s
strategy, evident in our expansion into various businesslines with a balanced approach to proportional andnon-proportional contracts. Geographical diversification
has been a priority, with our portfolio now spanning
40 markets: underscoring our ability to strengthen our
global presence, even in turbulent times.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCEIn the Middle East, the deceleration in economic
growth was mainly due to decreased oil production,
compounded by disruptions in the global landscape.
Nonetheless, the non-oil sector displayed resilience androbust growth with economic activity in the Middle Eastand North Africa region projected to rebound gradually inthe next few years as factors hindering growth diminish.

The company achieved a net profit before Zakat andtax of SAR 158.6 million in 2023, compared to SAR
91.3 million in 2022, marking a 74% increase from theprevious year. The profits after Zakat and Tax increasedby 64% to SAR 124.4 million, compared to SAR 76.1
million in the previous year. Additionally, the total
shareholders' equity exceeded SAR 1.146 billion by
the end of 2023, representing a 13% increase from theprevious year, while the earnings per share increasedby 65% to SAR 1.4. The company also achieved a 14%
increase in gross written premiums, with a total of SAR
1.59 billion in 2023

4.2 CAPITAL STRENGTHEN
Saudi Re has considered number of options tostrengthen the company’s capital base and support
its future expansion activities. On 4 March 2024
the Company announced signing a share purchaseagreement for the sale of its entire stake in Probitas
Holdings (Bermuda) Limited (PHBL) with Aviva
Insurance Limited for consideration of GBP120 million,
to be paid in cash.

CORPORATE GOVERNANCE

In 2023, the world grappled with significant
macroeconomic challenges, including the ongoing
Russia-Ukraine conflict and a cost-of-living crisis,
leading to a decline in global growth. Key drivers of
GDP struggled to recover to pre-pandemic levels with
forecasts indicating continued economic decline in theupcoming year. Global inflation began to ease due tostringent monetary policies and declining commodity
prices, putting strain on the global housing, banking,and industrial sectors. Complex geopolitical dynamics
among countries are likely to cause further instability in
2024. Moving forward, global monetary frameworks willplay a crucial role in stabilizing inflation, but sustained
higher policy rates could increase financing costs,
intensifying economic pressures worldwide.

13

ESG REPORT

4. Chairman’s Statement

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

14

4. Chairman’s Statement
The Company also announced signing a non-binding
Memorandum of Understanding (“MoU”) with the Public
Investment Fund (“PIF”) pursuant to which PIF intends
to subscribe to new cash shares in Saudi Re by way ofcapital increase with suspension of preemptive rights.

board were restructured. The board will strive effectively
to lead the Company to new horizons and develop its
business with the aim of maximizing shareholder value
and fulfilling their aspirations, while adhering to thehighest governance standards.

We believe these major steps would strengthen Saudi
Re’s market position, providing a solid foundation tocapitalize on emerging opportunities that align with
the Company’s growth strategy. Furthermore, they will
enhance Saudi Re’s credibility and reputation among
investors and stakeholders and contribute to ourlongterm success and sustainability in the reinsurance
industry.

During the year, we also worked to approve charters andpolicies including those related to IFRS 17. We believethat these essential developments to the Internal Audit
Charter and Manual, Compliance Policy, Remuneration
and Compensation Policy, AML/CTF Policy, and theBusiness Continuity Management System (BCMF) Policy;
will hold Saudi Re in good stead as we navigate changes
to the operating environment.

4.3 OUR ESG JOURNEY

4.5 A FUTURE FOCUS

Saudi Re places a strong emphasis on sustainability,
recognizing its importance in meeting the evolving
demands of our stakeholders. Our sustainability
approach is guided by national and international
standards such as the United Nations Sustainable
Development Goals (UN SDGs) and the Principles for
Sustainable Insurance (PSI), reflecting our commitment
to responsible business practices. As a pioneering
reinsurer in the Middle East, we strive to set abenchmark for sustainable practices in the industry by
voluntarily disclosing our Environmental, Social, andGovernance (ESG) performance. As a Sharia-compliant
company, we uphold the principles of sustainability inour business operations and investments. Additionally,
we continuously invest in the development and wellbeingof our workforce, as well as in uplifting our communities
through our Corporate Social Responsibility (CSR)
activities. Our efforts during 2023 demonstrate ourdedication to integrating ESG factors into our decisionmaking processes and promoting sustainable practices
across our organization.

Saudi Re is strategically positioned for remarkable
growth opportunities, leveraging our competitive
position in the Kingdom and expanding our presenceboth domestically and globally. We are actively
pursuing organic and inorganic avenues to enhance
our operations and scale while prioritizing value creationfor our shareholders. With a focus on sustainable
and diversified growth, we remain steadfast in ourcommitment to serving the interests of all
our stakeholders.

4.4 STRENGTHENING OUR GOVERNANCE
During 2023, a new Board of Directors was elected for athree-year term and the committees emanating from the

4.6 ACKNOWLEDGEMENTS
As we celebrate the momentous milestone of 15 years
in operation, I extend my heartfelt gratitude to our
dedicated employees for their unwavering efforts.
I am profoundly thankful to the regulatory bodies fortheir invaluable guidance and advice, and to ourinvestors for their continued trust in our vision.
My appreciation also goes to our clients and partners
worldwide for their collaboration and confidence in us.
As we look to the future, we remain steadfast in ourcommitment to creating value and serving all
our stakeholders to the best of our ability.

Abdullatif Al-Fozan
Chairman of the Board

15

OVERVIEW

5. Chief
Executive
Officer’s
Review Review
5.
Chief
Executive
Officer’s

CORPORATE GOVERNANCE

ESG REPORTBUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Our refreshed strategic direction, Strategy
Towards 2028, will strengthen Saudi Re’s position
as a leading reinsurer in the Middle East.

16

5. Chief Executive Officer’s Review
In 2023, the global landscape witnessed a confluenceof geopolitical shifts, macroeconomic challenges, andnatural disasters, which introduced further volatility anduncertainty across markets. Despite these complexities,
the Kingdom of Saudi Arabia demonstrated resilienceand adaptability, remaining steadfast in its pursuit ofstrategic initiatives aligned with Vision 2030.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Regionally, the insurance market experienced
fragmentation, rising claims inflation, and tax rates, aswell as intense competition, making securing businessmore challenging, particularly in business lines like motorand medical insurance, which constitute a significant
portion of Gross Written Premiums (GWP) in the region.
The new International Financial Reporting Standard 17(IFRS 17), which was adopted in January 2023, required
insurers to significantly overhaul existing frameworks andprocesses.
A notable theme in both the insurance and reinsurance
sectors was the reversal of pricing cycles. The
reinsurance sector, in particular, experienced arapid escalation in pricing dynamics, as reinsurers
prioritized capital preservation and made adjustments
to reinsurance arrangements and structures. Despite
the persistent challenges and market losses, the sector
showed significant improvement.
During the year, our strong domestic position andformidable brand presence proved to be a solid
foundation. With unwavering commitment to ourstrategic vision and dedication to creating value for ourshareholders, we navigated challenges with resilienceand agility. We delivered yet another commendable
performance, marked by 14% growth in Gross Written
Premium (GWP) and a notable increase in total assets by
SR 433 million. Shareholder equity also grew by 14%,reflecting the Company’s profitability improvement.

5.1 OUR FINANCIAL PERFORMANCE
Retaining our growth momentum, GWP reachedSR 1.5 billion by the end of 2023 recording a 14%
increase in gross written premiums. Reinsurance revenue
in 2023 amounted to SR 627 million, reflecting a 10%
reduction YoY. Despite this, most business lines showed
growth and witnessed improved results and positive
performance.
Leveraging the national initiatives including theregulatory local cessions and Inherent Defects Insurance(IDI) program, Saudi Re has invested in strengthening
its competitive position in its primary market in theKingdom. Contributing to these initiatives will enable
us strengthen our presence in the local markets andplay a pivotal role in developing the insurance andreinsurance sectors.
The profits after Zakat and Tax increased by 64%
to SR 124.4 million, compared to SR 76.1 million in
the previous year achieving a balanced performance
between investment and technical operations. Successof our underwriting strategy resulted in a 43% increasein the Reinsurance Service Result, and improvement
across most business lines.
The results of 2023 come in the context of a consistentprofitable growth trajectory for the Company. Saudi Re
achieved a CAGR exceeding 18% for written premiums
from 2019 to 2023, and a net profit CAGR of 28% for thesame period, confirming the Company’s competitivenessand its ability to maintain a rapid growth pace whileachieving substantial profitability rates.

5.3 OUR ACHIEVEMENTS
After diligent efforts throughout the year to ensure aseamless transition, we successfully adopted IFRS
17 and IFRS 9, as per regulatory requirements in theKingdom. With the material change to presentation offinancial results, we have restated comparative financial
data under the new standards.
In 2023, Saudi Re sustained its “A-” rating for both
long-term issuer credit and insurer financial strength.
The company also maintained a “gcAAA” regional scale
rating with a stable outlook, as evaluated by Standard& Poor’s Global Ratings (S&P). Additionally, its capital
adequacy levels remained above the “AAA” thresholdwithin S&P’s assessment model. Moody's reaffirmed
Saudi Re’s rating at A3 for Insurance Financial Strength
Rating (IFSR) on the international scale and at A1.sa on
the national scale IFSR, with a positive outlook.

Saudi Re received several prestigious accolades in 2023.
For the third consecutive year, the Middle East Insurance
Review honored us with the title of General Reinsurance
Company of the year. Additionally, our commitment totransparency and excellence in corporate reporting was
acknowledged at the Middle East Investor Relations(MEIRA) IR Awards, where we received recognition forthe second consecutive year. Notably, our annual reports
were awarded 2nd place in the Digital category and 3rdplace in the Print category. Saudi Re also joined the
MSCI small cap index in 2023.
Throughout the year, Saudi Re continued efforts tofurther human resource development and upgrade
technological infrastructure. Our initiatives aimed
to streamline operations and advance digitaltransformation. As the only regional reinsurer withanalytical and actuarial capabilities to comprehend
uncertainties through risk – and region-specificcatastrophe modeling, we solidified our position
as a leader in the industry.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Central to our success has been a forward-looking
and growth-focused strategy. After carefully evaluating
market trends and analyzing both local and international
growth opportunities, we embarked on refreshing ourstrategy – Strategy Towards 2028 – through which we
aim to expand the company's operations, capabilities,
and enhance scale Our direction remains rooted in bothorganic and inorganic growth, ensuring diversificationand sustainability. We are confident that making steadyprogress against our strategy will reinforce our position
as one of the leading reinsurers in the Middle East
region, and ensure we serve the interests of all our
stakeholders diligently.

These achievements serve as indicators of solvency,
creditworthiness, and the capacity to fulfill obligations topolicyholders and creditors. Comprehensive evaluationsof strategy, governance, financial performance, andrisk management further inform investment decisions.
Furthermore, it reflects our strong brand and market
leadership in Saudi Arabia, alongside our expanding
footprint in targeted regions such as Asia and Africa.
Moreover, it solidifies Saudi Re’s advantageous position,
bolstered by the right of first refusal on a portion ofpremiums from primary insurers. The recognition of
our conservative investment portfolio highlights ourcommitment to maintaining strong asset quality, which
in turn strengthens our competitive stance throughprofitable expansion, diversification, and growth in both
local and international markets.

ESG REPORT

5.2 STRATEGIC FOCUS

17

CORPORATE GOVERNANCE

5. Chief Executive Officer’s Review

18

5. Chief Executive Officer’s Review
5.4 REACHING A MILESTONE

5.5 IN CONCLUSION

In 2023, Saudi Re celebrates its 15th year of remarkablesuccess. Established in 2008 and listed on the Saudi
Exchange Market, we emerged as the pioneering
reinsurance company catering to the local insurance
market.

I extend my sincere appreciation to our dedicatedteam for their outstanding performance this year, theircontribution has been instrumental in driving our growth.
We also commend the efforts of regulatory bodies,particularly the Insurance Authority, in driving industry
advancement and improving market practices, which
not only fortify the domestic landscape but also provide
Saudi Re with opportunities for global expansion,aligning with our vision to rank among the top 50
reinsurers worldwide.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Guided by strong foundational pillars, strategic
foresight, and growing financial strength, we not only
achieved a market-leading position but also embarked
on a journey of international expansion in 2010. Oursteadfast commitment to maintaining a strong credit
rating, has positioned us to capitalize on global market
opportunities and broaden our reach.
Our ability to thrive amidst evolving industry dynamics
stems from our adaptability and responsiveness.
Throughout our journey, we have strategically
expanded across the Middle East, Africa, Asia, andbeyond, solidifying our presence on the global stageand emphasizing our commitment to achieving global
prominence.

I extend my sincere gratitude to our shareholders fortheir continued support and trust in our vision. I would
also like to take this opportunity to express appreciation
to our valued customers and business partners, whose
contributions have been instrumental to our success. As
we look ahead, we are confident that our commitment toour stakeholders, combined with our agile and strategic
approach, will empower us to navigate challenges
and capitalize on opportunities in the dynamic global
landscape. As we commence 2024, we remain dedicatedto pursuing shared goals and delivering exceptional
value.

Fahad Al-Hesni
Chief Executive Officer

19

OVERVIEW

5. Chief Executive Officer’s Review

30
Financial
Review

ESG REPORT

25
Strategic
Direction

CORPORATE GOVERNANCE

20
MarketReview

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

BUSINESS CONTEXT,STRATEGY ANDPERFORMANCE

20

6. Market Review
6.1 THE GLOBAL CONTEXTIn 2023, the global economic environment experienced
notable shifts due to a confluence of macroeconomic
disruptions, culminating in subdued growth rates andescalated inflationary trends.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Fundamental drivers of global GDP, encompassing
both investment and consumption, encounteredobstacles in returning to their pre-pandemic trajectories.
A combination of factors - including the enduring
impacts of the pandemic, geopolitical tensions
such as the Russia-Ukraine conflict, and a pronounced
cost-of-living escalation - contributed to tepid
economic recuperation. The global growth trajectorymoderated from 3.5% in 2022 to 3% in 2023, withforward-looking indicators projecting a further
contraction to 2.9% in 2024.
International financial markets managed to defy
pessimistic forecasts in 2023. Equities surged, andbonds rebounded from earlier declines, shifting
sentiment from recession apprehension to increased
confidence despite US interest rates rising to a 22-year
high. Global inflation declined from 8.7% in 2022 to 6.9%
in 2023, and future projections suggest a rate of 5.8%ifor the upcoming year. Although a moderation in core
inflation is anticipated, attainment of optimal inflationary
benchmarks remains unlikely until 2025. Moderation canbe attributed to stringent monetary policy frameworks
and consequential adjustments in global commodity
pricing structures.
The year 2023, and outlook for 2024 saw a mix of
economic uncertainty, simmering geopolitical tensions,and the advent of rapid technological change that isreshaping and redefining the risk environment. The World
Economic Forum (WEF) Global Risk Report identified
propagation of emerging technologies such as Artificial
Intelligence (AI), without suitable checks and balances,
to be a major factor in the risk landscape for 2024/25
and the next decade. Potential adverse effects of AI
and other frontier technologies includes the spread of
misinformation and disinformation, which was seen asithe most severe global risk anticipated over the next two
years. Similarly, Cyberattacks and resulting insecurity was
noted amongst the top five current risks, with potential toremain a significant factor in the next two years.
6.2 PROSPECTS FOR THE FUTURE
Within this evolving economic setting, the efficacyof global monetary policy is paramount to anchoring
inflationary expectations. Moreover, the overarchingeconomic trajectory is significantly contingent upon
the outcomes of sustained elevated policy rates, which
could further escalate financing costs for consumers
and capital for enterprises, thereby amplifying systemicpressures on the international economic landscape.
Growth in advanced economies is expected to slow
from 1.5% in 2023 to 1.4% in 2024 as policy measures
start to take effect amidst heightened geopoliticaluncertainties, less favorable credit conditions, theresidual effects of Central Bank tightening cycles, andinflation rates surpassing targets. Emerging market anddeveloping economies are projected to maintain growthat around 4% in 2024.
Global energy consumption is set to grow by 1.8% in
2024, largely driven by strong demand in Asia. Despitehigh prices and continued supply chain disruptions,the demand for fossil fuels is expected to reach record
levels, even as demand for renewable energy continues
to rise by an estimated 11% in 2024.
If Brent crude oil averages at USD 80/bbl, oil-exporting
sovereigns in the Middle East and North Africa (MENA)
will benefit, bolstering their credit metrics. MENA oilexporting nations are expected to experience enhanced
growth in 2024, supported by advancements in non-oil
real GDP and stabilization in oil production following the
reductions observed in 2023. However, if global growth
remains sluggish in 2024, there might be considerations
for additional OPEC+ production cuts, especially if the oilmarket transitions to a surplus. Although non-oil growthis projected to decelerate compared to 2023, persistently
high oil prices are expected to maintain.

International Monetary Fund 2023. World Economic Outlook Update, October 2023.

Over the past year, a significant narrative in the insurance
and reinsurance sectors has been the reversal ofpricing cycles. Throughout 2023, prices in the majority
of commercial insurance lines sustained their upward
trajectory, marking the fifth consecutive year of ahardening market cycle. However, when viewed on anindexed basis, the rate of annual increases has started totaper off.
The expectation of buyers for a shift back to more lenientconditions was challenged by unprecedented inflationlevels and substantial losses stemming from natural
disasters. Nevertheless, despite significant market losses
experienced this decade and the capital impairments
in 2023, returns within the sector have seen a notable
improvement.
In 2024, buyers should anticipate a mixed landscapewithin the insurance sector. While certain segments like
property insurance might experience challenges due toadverse loss experiences and increasing claims inflation,other areas will likely witness abundant capacity.
Insurers are expected to focus on expanding sectors
where performance remains robust, thereby creating a
dichotomy in market dynamics.
In contrast, the reinsurance sector observed a swift
escalation in pricing. Reinsurers demonstrated aheightened focus on capital preservation due to six
successive years of elevated catastrophe losses. Thistranslated into increased retentions, more stringent
terms, and diminished frequency coverage, including
adjustments to aggregates, reductions in excess-of-loss
layers, and modifications to quota shares.
Escalating demand-side pressures, coupled with apronounced capacity shortage, were exacerbated ascapital providers pulled back, while others opted merely
to sustain existing allocations. Such developments
heightened liquidity and credit risks for specificreinsurers, especially amid increased uncertainties
surrounding claims.

In the near term, price escalations are expected
to surpass the growth in claims costs, leading tounderwriting margins peaking in the upcoming year.
Concurrently, escalating reinvestment yields and arobust demand for reinsurance are anticipated tobolster earnings progressively. Pricing related tonatural catastrophe risks will more accurately reflect
the implications of climate change on claims. This shift
is especially evident as numerous reinsurers curtail
coverage for mid-scale natural catastrophe risks,
thereby reducing pricing competitiveness.
S&P raised reinsurance sector view to stable fromnegative on higher price and increasing investment
income, while Fitch raised its global reinsurance sector
outlook to “improving” from “neutral”. The sector isanticipated to uphold robust capital adequacy levels,
following an estimated 13% recovery in 2023 where
global reinsurance capital exceeded USD 635 billion.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

6.3 THE INSURANCE AND REINSURANCESECTORSThe convergence of geopolitical upheavals,
macroeconomic challenges, and devastating natural
disasters such as Hurricane Ian, the second most costly
natural disaster in history, as well as two destructive
earthquakes that hit Turkey and Syria in February, andMorocco in September, has injected notable volatility
into the market. Despite these challenges, Fitch Ratings
has upgraded its global reinsurance sector outlook from“neutral” to “improving”, reflecting the sector’s enhanced
financial resilience expected to continue in 2024. The
sector’s combined ratio is forecasted to reach 94% andnear-term return on capital is expected to exceed costof capital.

With institutional investors showing renewed interest
owing to anticipated higher returns, there could be
an inflow of alternative capital into the sector. Fitch
anticipates that the surplus of both traditional andalternative capital will contribute to a gradual softeningof the reinsurance market starting in 2025.
6.4 REINSURANCE/INSURANCE IN THE REGIONThe GCC region has demonstrated resilience in its
recovery from the pandemic-induced slowdown andthe decline in oil prices, maintaining growth momentum
fueled by increased domestic demand, ongoing reform
initiatives, positive tourism sentiment, and a rebound in
the hydrocarbon market.

CORPORATE GOVERNANCE

With escalating situation in the war on Gaza, regional
geopolitics continue to pose risks to sectors like tourism,
trade, and investment.

21

ESG REPORT

6. Market Review

22

6. Market Review

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

The Gulf Cooperation Council (GCC) insurance market is
poised for significant growth, with a projected compound
annual growth rate (CAGR) of 5.3% expected to propel
it to USD 44.4 billion by 2028, up from USD 34.3 billion
in 2023. This expansion will be driven by a variety offactors, including robust economic growth, population
increase, rapid technological and digital advancements,
heightened demand for health and life insurance,
extensive infrastructure projects, strengthened
regulations, mandatory insurance schemes, and a spikein mergers and acquisitions (M&A). Government efforts
toward economic diversification are expected to drive
spending on sustainable and alternative infrastructure
projects, consequently boosting insurable assets anddriving demand for property and liability insurance.
However, the market is characterized by fragmentationand intense competition, which poses a threat toinsurers' profit margins as they strive to secure business.
Rising claims inflation and tax rates present additional
challenges to insurers, particularly in core business lines
like motor and medical insurance, which constitute asignificant portion of Gross Written Premiums (GWP).
Despite prevailing challenges, the notable increase in
M&A activities serve as a strategic avenue for companies
to pursue inorganic growth.
Regulatory bodies in the GCC have implemented rules
and standards, including the adoption of International
Financial Reporting Standard 17 (IFRS 17) in January2023, aimed at enhancing transparency, accountability,and fairness within the insurance industry. This required
insurers to overhaul their existing frameworks andprocesses significantly. Coupled with heightened
capital requirements, the transition presents particularchallenges for medium-sized providers with limited
resources and capacity.
Additionally, GCC governments are prioritizing personal
data protection in response to rising cyber threats,
creating opportunities for new products such as cyber
insurance. Moreover, there is a growing demandfor credit insurance in the region, spurred by thecomplexities of global trade and economic uncertainties.

GCC insurers heavily rely on reinsurance, with asubstantial portion of premiums ceded to international
reinsurance markets. However, a hardening reinsurance
market poses risks to the financial performance of
GCC insurers.
Despite growth, insurance penetration in the GCC isprojected to remain between 1.6% and 1.7%, withdensity expected to increase from USD 597.6 in 2023
to USD 699.5 in 2028. Penetration rates across all
segments in the GCC insurance sector fall below global
standards, indicating untapped potential. Addressing
this requires concerted efforts and strategic initiatives toraise awareness and build consumer confidence in theregion’s insurance products.
6.5 THE LOCAL CONTEXTThe Kingdom remains steadfast in its pursuit of theambitious Vision 2030, achieving numerous milestones
ahead of predetermined timelines. Several initiatives,
particularly those that initiated early-stage restructuring
within key state sectors are beginning to yield tangible
results.
According to estimates from the General Authority for
Statistics (GASTAT), real GDP of Saudi Arabia decreased
by 0.8% during 2023ii, primarily driven by a 9.0% decline
in oil activities. Non-oil sectors are estimated to havegrown by 4.4%, and government activities by 2.1%
in 2023. Financial, Insurance and Business Services
activities recorded a growth of 6.8%. Gross Domestic
Product at current prices amounted to SR 4,003 billion
in 2023, with crude petroleum and natural gas activities
continuing to provide the highest contribution to GDP
with a share of 25.4%ii.
The International Monetary Fund (IMF) raised its growth
projections for the Kingdom to 4% in 2024, while thepreliminary budget statement from the Ministry of
Finance has said that real GDP is expected to growby 4.4%. The Kingdom has continued to increase
its expenditure, allocating a budget exceeding
SR 1.2 trillion for 2024, accompanied by prudent
revenue forecasts. Geopolitical shifts can present
either challenges or opportunities for the Kingdom.

ii General Authority for Statistics (GASTAT). 2023. GDP and National Accounts Fourth Quarter of 2023. Riyadh, KSA.

Projections for the forthcoming year are shaped bymultiple elements, encompassing the developmentsof 2023 and the strategic initiatives undertaken by
the Kingdom aiming to counterbalance potential

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCEThe Kingdom has exhibited agility and adaptability
in navigating economic and political challenges inrecent times. Unlike many nations, it remained largely
insulated from pandemic-induced inflation and adeptly
managed the effects of global geopolitical tensions.
The Kingdom proactively launched initiatives targeting
global supply chain issues. This forward-thinking
approach is anticipated to persist into the upcoming
year, with strategic measures in place to safeguard its
economic and strategic priorities. Benefiting from a
resilient economy and strong international partnerships,
the Kingdom is poised to pursue its national endeavors
aimed at elevating key sectors.
6.6 SAUDI RE’S RESPONSE
As a result of our efforts to widen the scope of ouroperations, especially in the local and Middle Easternmarkets, Saudi Re has achieved positive results andnotable growth in performance throughout 2023.
Our business activities have reinforced our position
as a leading company and opened new doors ofopportunity and growth both locally and globally.
We have also maintained remarkable financial andtechnical performance and a robust financial position,
which resulted in the Company maintaining its A- credit
rating from S&P with stable outlook, while Moody’s
reevaluated the Company, resulting in an A3 rating andraising the outlook from stable to positive.
With increasing risks of natural disasters, the Company
undertakes thorough procedures to monitor and evaluate
its risk exposure rates, investing in advanced tools andtechnologies to analyze and manage risks, and utilizing
actuarial forecasting and prototyping methodologies. For
instance, Saudi Re operates state-of-the-art actuarial
systems from RMS, which are considered among theworld’s most effective natural disaster management
technologies.

ESG REPORTIn developments during 2023: January saw SAMA issue
a circular mandating phased reinsurance cession to the
local market from 1 January 2023, targeting a minimumof 30% reinsurance cession offered to the local market
by the beginning of 2025. This is likely to impact the
local insurance industry in the medium to long term.
Amendments were introduced to the Unified Compulsory
Motor Insurance Policy, making it mandatory for all
vehicles in the Kingdom to have at least third-party
liability insurance. Additionally, changes were made to
the Comprehensive Motor Insurance Rules to fortify
the regulatory framework and safeguard the rights ofbeneficiaries. SAMA announced the licensing of thefirst foreign health insurance company branch in Saudi
Arabia. This move aimed to encourage foreign direct
investment, while stimulating competition in the sector.
In August, the Insurance Authority (IA) was established
to regulate and supervise the insurance sector in Saudi
Arabia, taking over responsibilities previously held by
SAMA. The IA has been set up with the aim of enhancing
the sector's effectiveness and promoting stability,
while protecting rights and strengthening contractual
principles. This significant development in regulatory
supervision, bringing with it the potential for legal reform,
happens at the same time as issuance of new Insuretech
rules governing online reinsurance brokerage; signaling
new opportunities for the Kingdom’s reinsurance sector.
Marine Insurance Coverage instructions were issued
to help develop a regulatory framework for compulsory
and non-compulsory marine insurance in the Kingdom.
Furthermore, two insurers obtained their final regulatory
approvals for their on-market merger, marking the sixth
merger in the Kingdom’s insurance market, in line withthe goal to create fewer and stronger companies capableof meeting market expectations.

vulnerabilities in the global oil markets. Anticipations
suggest a continued uptick in revenues for 2024
attributed to the increasing participation of the private
sector, stimulated by diverse governmental initiatives
and strategies aligned with Vision 2030. Saudi Arabia
is also poised to host Expo 2030 and the 2034 World
Cup, leading to the anticipation of numerous extensive
infrastructure projects in Riyadh.

CORPORATE GOVERNANCE

Reports from the newly established Insurance Authority(IA) indicate that the Kingdom’s insurance sector grew by
26.9% in 2022, with total Gross Written Premium (GWP)
reaching SR 53.4 billion during the same period. The
year 2023 continued this steady trend with 21.8% growth
in GWP over the first nine months, when compared tothe same period the previous year.

23

OVERVIEW

6. Market Review

24

6. Market Review

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Reflecting the ever-changing and diversifying catalog
of international risks, we continuously strive to update
our risk management strategy, consolidating our ability
to identify areas of risk and handle them preemptively,
and scaling up our readiness to handle any crisis. Our
business continuity framework was also refreshed,
and comprehensive procedures were put in place torespond to a diverse array of risks, which ensures
operational resilience and the continual provision ofservices to our clients. Additionally, we have placed a
special focus on mainline activities, safeguarding theCompany’s success and ability to adapt with a changing
reinsurance market. With all in place, attention was paid
to the preemptive management and enhancement ofclaims activities – considering the rising rates of global
inflation – and to capitalizing on advanced analytics andaccrued statistical experience, limiting risks and ensuring
effective claims management.
Saudi Re’s general strategy was likewise updated to alignwith market and regulatory environment developments
through conducting a complete review of business goals,
market trends, and growth opportunities. This strategicorientation strengthens our capacity to accommodate
emerging trends and improve our operational, technical,
and human capabilities, maintaining the pace of growth
and achieving greater performance overall. Moreover,
and owing to our commitment to our ambitious growthstrategy, we worked towards finding solutions to support
and bolster our capital base and attract strategic
investors to maximize the Company’s future operational
output. We have also reached an agreement to sell ourshare in Probitas for 120 million AUD, enabling us toreinforce our competitive foothold and redirect monetary
resources into new local and international growth
opportunities.

pillar in Saudi Re’s strategy; therefore, our achievements
have been recognized by being awarded first place in2023 Saudi insurance sector’s sustainability rankingsfor the second consecutive year. As for governance, we
adhere to a robust structural system that is designed toprotect shareholder and other stakeholders’ interests,
while ensuring compliance with laws, regulations, andguidelines of regulatory agencies, and as a shariacompliant company, we avoid investments that could
lead to adverse societal impacts, and continually
advocate for equality, inclusion, and economic
prosperity.

Opportunities

Change in regulations
Developing economies grows
by 4% in 2024
Global energy consumption
grows by 1.8% in 2024

Refresh Saudi
Re’s strategy

Renewable energy rises by
11% in 2024
Inflow of alternative capital

Risks

Saudi Re’s response

Geopolitical tensions
Enduring impacts of the pandemic
Cost-of-living crisis
Cyberattacks
AI-generated misinformationand disinformation
Attacks on critical infrastructure
Global inflation

At Saudi Re, we focus on the vital importance of ESG
to achieving sustainability, confirming our steadfast
commitment towards sustainable business practices
through maximizing economic value, creating positiveenvironmental impact, and supporting sustainable social
development. Sustainability continues to represent a key

Saudi Re’s response

Advanced economies growth slow
Regional conflict
Geopolitical upheavals
Climate change issueszRefresh BCM
frameworkzManage andoptimizeclaims cost

25

OVERVIEW

7. Strategic Direction

Our “Strategy Towards 2028” is stronglyaligned with the overarching Saudi Vision
for the insurance sector:

Driven by the dedication to solidify its status as anational champion, Saudi Re pursues two primarystrategic objectives aimed at sustaining profitable
growth locally and internationally:
Capitalizing on the growth potentialof the Saudi economy and leveraging
our advantageous presence in theKingdom to:

Increase GDP
diversification/non-oil
GDP growth

Develop highly
specialized talent poolof Saudi Nationalsz

Support Saudi Vision 2030 andde-risking economic growthzPlay an anchor role in increased
domestic market retention andabsorption of risksz

Drive innovation to better capture
new and emerging risks

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Our vision is “To evolve into a large and diversified reinsurer contributing to the growth of our economy aiming to be
ranked among the top 50 global reinsurers” which is anchored at the core of our activities. Saudi Re has developed
Strategy Towards 2028; a strategic blueprint that will enable the company to play an anchor role in increased
domestic retention and drive innovation to better capture new and emerging risks in local and international markets.

De-risk the KSA
economic growth byproviding
local content solutions
to retain and absorb
risks locallySupport the
emergenceof new insurance
solutions for poorly
covered riskszBecoming a prominent exporterof reinsurance capacity throughthe prudent underwriting ofinternational riskszHarnessing existing global reachto advance into new markets andvital capabilities.

ESG REPORT

Maintaining a well-balanced portfoliowith healthy composition of local andinternational business by:

CORPORATE GOVERNANCE
OPERATING PERFORMANCE

Saudi Re focuses on leveraging extensive domestic
prospects while expanding internationally to foster
diversification, ultimately establishing ourselves as aprominent global reinsurer within the global top 50.

26

7. Strategic Direction
The strategy continues to evolve around the following
five pillars:

Scale
We prioritize the pursuit of scale, which involves
expanding our economic scale, earnings, andcapital base, as well as enhancing our resilience
to major losses.

Diversification

DIRECTORS’ REPORT 2023

Our strategy includes diversification, both
geographically and in terms of risk type,to ensure a well-balanced portfolio.

Technical and Operational Capabilities
We are dedicated to continuously improving ourtechnical and operational capabilities, which include
risk management, technological advancements, andhuman capital development.

S A U D I R E I N S U R A N C E C O M PA N Y

Relationships
We place a high value on building strong relationships,
particularly with cedants, brokers, partners, andregulators. Our corporate brand is also an essential
factor in fostering positive relationships.

Financial Soundness
Maintaining financial soundness is critical to
the strength and stability of our business. We
strive to maintain technical profitability, adequate
capitalization, and favourable returns on investment.

Growing economies of scale is a crucial aspect of ourstrategy, as it enables us to reduce volatility and absorb
large losses more easily. By attaining economies ofscale, we can make larger investments in developing
our capabilities and enhancing our operational
efficiency. Furthermore, our scale benefits enable us toearn investment income from premium floats, thereby
boosting our investment performance.
To support our expansion efforts, we will continue
to explore opportunities in high-growth markets in
the Middle East and Asia. The strength of the Saudi
Re brand and our cooperative model provide further
advantages in these markets.
Diversification is a crucial element of our strategic
approach, enabling us to minimize correlated risks,
concentration risks, and accumulation risks: ensuringa more balanced reinsurance portfolio is maintainedwith reduced volatility. As per the recent Saudi Re rating
review by S&P, the benefits of risk diversification also
contributes in reducing the capital requirements. Our
efforts to diversify globally have resulted in a soundportfolio that consists of over 40 markets in the Middle
East, Asia, and Africa. At present, our international
business accounts for 51% of our portfolio.
Saudi Re also continually strives to build strong
capabilities that span the entire gamut of operationsin the reinsurance industry. Our underwriting teampossesses strong professional skills and an in-depth
understanding of the regional risk profile, guided byclearly defined risk appetite parameters. Actuarial andanalytical teams work closely with the underwriters tojudiciously to better manage our underwriting portfolios,
while our streamlined claims management, supported bytechnical accounting, ensures efficient operations. Saudi
Re actively utilizes retrocession to manage risk exposureand mitigate the impact of volatility. Furthermore, ourgrowth and decision-making processes are supported by
our advanced capital modelling capabilities, allowing us
to make informed and effective decisions.
At Saudi Re, we pride ourselves on our comprehensive
operational capabilities. Our team possesses advanced
technological, decision-making, and human resources
skills. Our client servicing is well supported byadvanced technological, analytical, and communication

To maintain the financial health of the Company,
financial soundness is continuously monitored using
indicators for all criteria, including:z

Capital adequacy and solvency – measured
by relevant ratios and internal capital modelz

Asset quality – includes quality of investment
portfolio and asset liability matchingz

Retro and actuarial provisions – strong reserving
and a high-quality retrocession program are in placezManagement strength – effective enterprise risk
management programz

Earnings and profitability – measured byrelevant ratiosz

Liquidity – a highly liquid investment portfolio
is maintainedz

Sensitivity to market risk – limited exposure
to equity markets

In October 2023, the Board of Directors made therecommendation to increase the Company's capitalthrough a direct offering from an anchor investor the PIF;
that will subscribe to new cash shares representing asignificant minority ownership in Saudi Re to strengthen
Saudi Re’s capital base and support its future expansion
activities.
Saudi Re has progressed in finalizing due diligence
activities and regulatory submissions requirements
and it is expected that transaction will be concluded
in second quarter 2024 subject to signing the binding
agreement. Al Rajhi Capital was appointed as a financial
adviser to Saudi Re and GIB was appointed as afinancial adviser to PIF.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Our strategy involves building and strengthening
long-term relationships with clients and brokers, which
is managed prudently by our skilled underwriting
teams. We seek to establish strong links with high-value
counterparties, and our markets in Asia are served by
the branch in Kuala Lumpur. Brokers are also integral
to our business process. Through leveraging the strong
links, we have established with retrocession insurers,
we are able to increase our capacity by reducing risk.

Capital increase

7.2 PROGRESSING ON LOCALCESSION REGULATION
Local cession was mandated by article 40 of the
Implementing Regulations of the Cooperative Insurance
Companies Control Law by the Saudi Central Bank.
Insurance and reinsurance companies operating in Saudi
Arabia are required to maintain a minimum of 30% of
reinsure premium at least with a local provider, unless
granted approval by the regulatory authority.
In October 2022, SAMA introduced a new mechanism
aiming at improving the enforcement of local retention ofreinsurance premiums within the Kingdom and increasing
the insurance sector’s contribution to the local content.
This new mechanism requires insurance companies tocede a share of all their reinsurance treaties, proportionaland non-proportional, to the local resonance market witheffect from 1 January 2023.
The cession share, under the new mechanism, startingat 20% in 2023 will gradually increase to 25% in 2024
and 30% in 2025. This new mechanism is expected
to strengthen the domestic reinsurance ecosystemand enable the national reinsurance market to play
an active role. The increased retention of reinsurance
premiums within the Kingdom is expected to have apositive economic impact and contribute to the financial
stability of the sector. Being the only specialized local

ESG REPORT

Looking to the future, we are committed to leveraging
our competitive advantage in the Saudi market by not
only retaining our market share but also capitalizing on
the growth opportunities presented by the expanding
Saudi economy. Saudi Re is also determined to utilize
its expertise and experience in the reinsurance industry
to achieve sustainable long-term growth in inherent
defects insurance and other classes.

7.1 OVERVIEW OF NEW DEVELOPMENTS IN 2023

CORPORATE GOVERNANCE

infrastructure, which enables us to be highly responsive
to client needs. Our lean and cost-efficient infrastructure
allows for efficient operations. We take a holistic
approach to risk management, implementing prudent
policies and programs and closely monitoring the risk
management process through the risk, technical, andAudit Committees of the Board.

27

OVERVIEW

7. Strategic Direction

28

7. Strategic Direction
reinsurer, Saudi Re is well-positioned to support theimplementation the new mechanism and benefit frompotential growth of its home market.

financial performance. Credit ratings also assist investors
in assessing a company’s strategic approach, risk
management, and governance.

Following a successful implementation of theenforcement of treaty regulation cession, it is expectedthat a similar mechanism will be soon introduced forfacultative business which represents about 40% of
reinsurance premium.

Saudi Re was assigned an “A-” long-term issuer credit
and insurer financial strength rating and a “gcAAA”
GCC regional scale rating, with a stable outlook, by S&P
Global Ratings. S&P noted that Saudi Re has continued
to strengthen its competitive position through profitablebusiness growth and diversification. The Company’s
exposure to catastrophe and other large risks is relatively
modest, and it maintains capital adequacy above the“AAA” level in S&P’s model. The stable outlook reflects
S&P’s expectation that Saudi Re will maintain excellent
capital adequacy and continue to profitably expand
and diversify its business over the next two years. S&P
also views Saudi Re’s governance practices as effective
and appropriate, and the consistency in strategy, andmanagement expertise and experience as a benefit to
the Company.

7.3 INHERENT DEFECTS
INSURANCE (IDI) PROGRAM

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

In August 2020, Saudi Re announced the signing ofan exclusive reinsurance contract with Malath Insurance
Company on behalf of the Saudi insurance industry’s
participants in the Inherent Defects Coinsurance
Program. As part of the arrangement, Saudi Re acts
as the exclusive reinsurer for the Saudi Arabian Inherent
Defects Coinsurance Program for five years.
The Inherent Defects Insurance (IDI) became amandatory requirement for contractors involved in
private sector construction projects, following theCouncil of Ministers Resolution No. 509 issued on 5 June
2018. To support the implementation of the IDI program,
SAMA issued a standard policy wording for the IDI cover.
The IDI policy has a duration of 10 years for the cover;
Saudi Re has put in place retrocession protection asa risk management measure to manage this long-tailbusiness.
The IDI program underwent various implementation
phases and during the year 2022 the program witnessed
and improved enforcement. Saudi Re has booked
SR 385 million of gross written premiums (GWP) under
IDI class of business and represented 24% of Saudi
Re’s 2023 GWP. IDI program is among the key strategic
initiatives as the advancement of IDI implementation
stimulates growth for Saudi Re and reflects on its
financial performance.
7.4 CREDIT RATINGS
The credit rating of an insurance company plays acritical role in the sector, as it indicates the Company’slevel of solvency and creditworthiness, its ability tomeet its obligations to customers and creditors, and its

Moody’s affirmed Saudi Re’s “A3” Insurance Financial
Strength Rating (IFSR), with a Positive outlook, in 2023.
The rating reflects the Company's strong brand andmarket position in Saudi Arabia as the sole reinsurer
and its growing presence in the target markets ofAsia, Africa, and Lloyd’s. It also reflects Saudi Re’s
preferential position in the Saudi market and its strong
asset quality evidenced by its conservative investment
portfolio. The rating also reflects the Company's strong
capital adequacy, non-existent leverage, and goodaccess to capital markets in Saudi Arabia, given its
listing on the Saudi stock market, in addition to a broad
investor base. The expanded capital base is expected
to provide a platform that helps Saudi Re strengthen
its market position in the broader Middle East region
while providing additional capacity to support insurance
market growth in Saudi Arabia and pursue further
international expansion opportunities to diversify its
business in line with the Company’s strategic plan.
The two A-level ratings, A-from S&P and A3 from
Moody’s, reinforce the confidence of clients,
shareholders, regulators, and all stakeholders of Saudi
Re and its future. These ratings are critical in ensuring
Saudi Re’s financial ability when dealing with reinsurers
and in supporting the Company’s growth efforts in theinternational markets.

29

OVERVIEW

7. Strategic Direction

Regional reinsurance
ranking

10.2

A- S&P
A3 Moody’s

SAMA 291
S&P 133

Among Top 3
Regional Reinsurers

7.7

A- S&P
A3 Moody’s

SAMA 299
S&p 127

Among Top 3
Regional Reinsurers

Investment
return%Return on
equity (ROE)%

Expense
ratio
%

2022

1,403,281

96.4

2.27

3.4

2023

1,597,000

95.4

7.47

11.3

7.6 COMMON SUCCESS FACTORS IN THE REINSURANCE INDUSTRY AND PROGRESS OF SAUDI RE
Success factors

Description

Saudi Re’s progress

Clear strategy
and propositionz

Clear value proposition boosts market perception.

zz

Established role with brokers and cedants ensures steadypremium income from targeted segments.

Evolving into a large and well diversified
reinsurance company.

z

Strong and responsive relationships withbrokers and cedants.

Geographic
diversificationz

Diversification across business lines and geographies
improves capital efficiency and reduces loss volatility.

zPortfolio is diversified over 9 lines ofbusiness and spread across 40+ markets.

Scale benefitzExpanding size and profitability, enhancing capital base,and improving resilience to loss events.

z

Strong growth momentum, recording 19%
CAGR 2019-2023.

z

Strengthen capital base from the expected
gain of the sale of the entire Saudi Re share
in Probitas and possible involvement of PIF.

Strong client/distribution
relationshipsz

Strong ties with leading international brokers and global
distribution platforms ensure ongoing business.

z

Well-established ties with high value
counterparties.

z

Skilled underwriters improve business generation capabilities.

z

Named “reinsurer of the year”
by Middle East Insurance Review.

zMarket-dedicated underwriting teams
prudently manage the client relationships.

High limits/line leaderz

Increased limits and underwriting capacity increase
attractiveness of reinsurers.

zGrowing ample underwriting capacity andprudently engaging as a lead reinsurer.

Active broad
range of risksz

Writing a wide range of risks increases visibility with brokers.

zz

Exercising flexibility on terms improves relationshipwith brokers.

Engaging in the development of new products
and offering main lines of business in life andnon-life, both in Treaty and Facultative.

“A-rated”
capitalz

Required to compete for desirable business.

zz

Favored by cedants and brokers.

Obtained an “A-” long-term issuer credit
and insurer financial strength rating by S&P,
with a stable outlook.

z

Maintaining “A3” Credit rating by Moody’s,
with a positive outlook.

z

Investing in technical and technologicalcapabilities while maintaining operating
expense within acceptable range.

Robust technicalcapabilities
and operational
effectivenessz

Strict underwriting, cycle management, and controls
drive strong technical and investment returns.

zStrong focus on operational efficiency
leads to lower operating costs.

ESG REPORT

Solvency
ratio%

Combined
ratio%

CORPORATE GOVERNANCE

CreditratingGross written
premium
growthBUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

7.5 PERFORMANCE AGAINST OUR STRATEGY

30

8. Financial Review
8.1 PROSPECTS AND OUTLOOKS A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

PERFORMANCE HIGHLIGHTS:z

Net profit before Zakat and tax of SR 158.6 million
in 2023, compared to SR 91.3 million in 2022,
marking a 74% increase from the previous year.

z

Net profit after Zakat and tax increased by 64% to
SR 124.4 million, compared to SR 76.1 million in theprevious year, achieving a 28% CAGR during theperiod from 2019 to 2023.

z

Earnings per share increased by 65% to SR 1.4.

zGross Written Premiums increased by 14%,
recording SR 1.59 billion in 2023, with a 19% CAGR
during the period from 2019 to 2023.

z

Total shareholders’ equity exceeded SR 1.146
billion by the end of 2023, representing a 13%
increase from the previous year.

Saudi Re continues to demonstrate a robust
performance driven by the Company’s long term strategy
and forward-looking approach to leverage opportunities
in its key classes of business and develop revenue
streams across domestic and international markets.
The key strategic approach involves client-centricity,commitment to market development and diversification,
and adherence to sustainable business practices. Thisis evident in the results of operations and growth inbusiness volumes recorded during the year.
The Company captures the local opportunities via
reinsurance exclusivity of Inherited Defect Insurance(IDI), and continuing the 30% local retention strategy.
Internationally, Saudi Re cautiously develops its businessin preferred and profitable territories and capitalizing on
business mix diversification.
Saudi Re exhibits its capital adequacy and solvent
position via achievement of S&P “A-” credit ratingwith stable outlook and, “A3” rating from Moody’swith positive outlook. Saudi Re’s credit rating opened
additional profitable opportunities in new international
markets, especially in Asia. Moreover, Saudi Re’s
strategy enabled the Company to capitalize on theinternational market hardening, which contributed
positively to performance.

The Saudi Central Bank (SAMA) introduced a mechanism
in October 2022 to improve local retention of reinsurance
premiums within the Kingdom. According to thismechanism, insurance companies are required to cedea share of all their reinsurance treaties, proportional andnon-proportional, to the local reinsurance market witheffect from 1 January 2023. The cession share whichstarts at 20% will gradually increase to 25% in 2024,
and 30% in 2025.
Saudi Re continues to maintain a well-balanced
underwriting portfolio with 51% international business,while keeping focus on risk selection which in turnreflects positively on underwriting performance.
The Company has recorded decent growth on the backof business written in other markets, especially in Saudi
Arabia and Asia, and this opens up further opportunities
in the region.
In line with Saudi Re’s strategy, the Company aims tostrengthen its capitalization to unlock new expansion
opportunities. To that effect, Saudi Re announced thesigning of a non-binding memorandum of understanding
with the Public Investment Fund (PIF) pursuant to which
PIF intends to subscribe to new cash shares in Saudi Re
by way of capital increase with suspension of preemptive
rights. A subsequent event occurred on 4 March 2024,
as the Company announced signing a share purchaseagreement for the sale of its entire stake in Probitas
Holdings (Bermuda) Limited (PHBL), consideration of
GBP 120 million, to be paid in cash, subject to final
closing adjustments and applicable regulatory approvals.
The global reinsurance market has shown considerable
hardening on account of inflation, rising interest rates,
reducing retrocession and reinsurance capacities, andgeopolitical tensions.
Notwithstanding the retrocession capacity shortage,these market conditions have been favorable to Saudi
Re and resulted in price correction in certain markets.
However, and by virtue of cyclicality, the reinsurance
market may possibly soften in the medium term.
Saudi Re aims to sustain positive through-the-cycle
performance by managing volatility and risk exposuresand reinforcing its foothold in high growthand profitable market segments.

8.2 REVENUE
Saudi Re has adopted IFRS 17 (Insurance Contracts)
and IFRS 9 (Financial Instruments), as endorsed in
Saudi Arabia, starting 1 January 2023, with retrospective
application, which has materially changed thepresentation of the financial results for periods startingQ1 2023 onwards with the comparative periods restatedunder the new standards.
Saudi Re illustrated a strong 5-year growth momentum
that was maintained with a 14% increase in GWP,
reaching SR 1.6 billion in 2023. The IDI, which represents
25% of Saudi Re’s GWP in 2023, also indicates upbeat
future prospects based on the Company retaining
exclusive privilege to reinsure the mandatory
IDI program. This is the highest premium recorded by
Saudi Re, and holds the Company in good stead withregard to its plans for continued growth and expansion.

The 2023 GWP in the following graph is unaudited
IFRS 4 figures and for illustration purposes only.

In 2023, Reinsurance Revenue reached SR 627 million,
which demonstrates a 10% deterioration compared to
the year 2022. Though there was a growth in most of
the business lines, the deterioration was mainly due
to non-renewal of major non-performing contracts,
essentially for medical and motor, and that isdemonstrated through improvement in the reinsurance
service result that increased by 43% compared to thelast year. Moreover, the net financial results have boosted
by 163%, and net income after Zakat & Tax increased by
80% to reach SR 139.85 million.

Reinsurance highlights (IFRS 17)
2023(SR ’000)

2022(SR ’000)

Reinsurance revenue

627,187

696,998

Reinsurance service result

119,762

83,589Net investment income

60,388

8,379

Net financial result

25,762

9,864

Share of profit of equity
accounted investee

40,071

33,105

Net income after zakat and tax

124,429

76,052OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Furthermore, Saudi Re plans to continue to capitalize
on favorable regulatory and market conditions in its
home market, which for example are represented
by the enforcement of local retention of reinsurance
premiums within the Kingdom. This increased retentionof reinsurance premiums is expected to develop local
content, strengthen the financial stability of the sector,
and enable the national reinsurance market to play amore active role.

31

ESG REPORT

8. Financial Review

Gross written premium (IFRS 4)(SR ’000)
1,750
1,400
1,050

350
0
2019

2020

2021

2022

2023

CORPORATE GOVERNANCE

700

32

8. Financial Review
Revenue highlights (IFRS 4)
2022(SR ’000)

2021(SR ’000)

2020(SR ’000)

2019(SR ’000)

2018(SR ’000)

Gross written premiums

1,403,281

1,115,880

935,114792,848

721,605

Retroceded premiums

462,920

123,898

123,898

127,844

72,997

Net written premiums

898,599

958,968

772,639645,605

616,896

Net earned premiums

927,891

854,730

647,120642,535

613,615

Total revenues

942,706

874,406

659,814660,711

630,083

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

8.3 REINSURANCE REVENUE
As indicated earlier, Saudi Re implemented a strategy
to revive its business and improve the performance ofbusiness lines: capturing advantages from international
market hardening and upgrading of credit ratings. This
triggered an underwriting plan that involves penetrating
new international business lines. In addition, Saudi Re
reconsidered and improved its reinsurance terms forsome business lines. On the other hand, the strategy
implies non-renewal of part of the book of businessmainly in marine, protection, medical and motor thatwere underperforming.

Revenue by lines of business2023(SR ’000)

2022(SR ’000)Engineering

58,866

51,613

Fire

150,416

172,447
36,142Marine26,100General accident

40,38035,536

Specialty

127,997

122,410

Others

143,819

127,909

Motor

44,81582,155

Protection

6,564

17,207

Health16,33648,196

IDI

11,893

3,383

Total

627,187

696,998

33

OVERVIEW

8. Financial Review
Reinsurance revenue by lines of business
7%

1% 3%

2% 9%

7% 1% 7%
2%
12%
24%

25%

2023

2022

18%
5%

4%
5%

7%
20%
Engineering
Others

18%

Fire
Motor

MarineProtection

General Accident
HealthSpecialty

IDI

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

23%

2023
(SR ’000)

2022(SR ’000)

KSA

216,821

255,592

ME

67,95382,534Africa16,36632,510Asia

196,874

201,319

Other territories

129,173

125,043

Total

627,187

696,998

18%

21%

37%

34%
2022

31%

29%

11%

4%

3%
Middle East

AfricaAsia

Other Territories

12%

CORPORATE GOVERNANCE

2023

KSA

ESG REPORT

Reinsurance revenue by geography

34

8. Financial Review
Reinsurance service results by line of businessSaudi Re’s underwriting strategy can be demonstrated
in a 43% improvement of the Reinsurance service
result, and improvement in most business lines. Major
improvement was in the Fire business line mainly due
to reaching claims settlements with counterparties thatwas less than claims provisioned. Moreover, Saudi Re
avoided renewing underperforming fire contracts.
In contrast, the motor business showed the mostdeterioration with 77% reduction compared to 2022,
mainly due to incurred claims from the unfortunate
Jeddah flood event that occurred in October 2022.
In addition, the Company contracted its business in the
motor business line. Saudi Re trusts that IDI performance
will pick up in future years, as this particular businessline has a long-term earning phase.

In this regard, Saudi Re’s strategy of continued businessdiversification has contributed to reaching 43% growthin overall results.

2023(SR ’000)

2022(SR ’000)

KSA

86,807

51,134

Middle East

(37,722)

25,739Africa(8,266)

18,388Asia

50,352(46,639)

Other territories

28,59034,966

Total

119,762

83,589

Reinsurance revenue and results ofperformance by geography – 2023
(SR ’000 million)

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

2023
(SR ’000)

2022(SR ’000)

250
200

Engineering

13,796

10,440Fire

16,675(22,798)

Marine13,895

9,526

General Accident

5,596

5,498

Speciality

26,26331,350

Others33,94923,883

Motor

4,352

18,724494

766

Health

7,603

4,436

IDI

(2,861)

1,764

Total

119,762

83,589Protection

150
100
50
0
-50
KSA

Middle East

Reinsurance service result

AfricaAsia

Otherterritories

Reinsurance revenue

Reinsurance service expenses
by line of business
Reinsurance service results by geography
Saudi Re's strategic decision to not renew
underperforming reinsurance contracts in Saudi andAsian markets, coupled with favorable market hardening
and an international credit rating upgrade, contributed
significantly to success.
As part of Reinsurance business, the unfortunate
earthquake events in Turkey and Morocco caused
the deterioration in the Middle East and Africa regions.

Although the business grew compared to lastyear, reinsurance service expenses demonstrated
a 14% reduction compared to last year. This was
mainly due less claims due to Saudi Re’s strategy ofunderperforming business non-renewals. Increase inreinsurance expense for the Marine business line wasdue to one major account that was mostly retroceded.

35

OVERVIEW

8. Financial Review

2022(SR ’000)Engineering(19,849)(24,860)

Fire(147,376)(211,532)

Marine(50,029)

3,192

General accident(31,588)(24,569)

Speciality(101,734)(91,061)

Others(73,550)(113,337)

Motor(40,424)(63,420)

Protection(5,702)(15,973)

Health(8,733)(43,760)

IDI(30,790)(5,849)

Total(509,774)(591,168)

2023(SR ’000)

2022(SR ’000)

Incurred claims and otherdirectly attributable expenses

611,206

597,537

Changes that relate to past
service – adjustments to the LIC(249,212)(83,069)

Losses on onerous contracts
and reversal of those losses

132,877

65,268

Reinsurance acquisition
cash flows amortisation

14,903

11,432509,774

591,168

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Reinsurance service expenses IFRS 17
2023(SR ’000)

Reinsurance revenue and results of performance by line of business – 2023
(SR. ’000 million)
160
140
120

ESG REPORT

100
80
60
40
20
0
-20
Fire

Reinsurance service result

MarineGeneralaccident

Speciality

OthersMotor

Protection

HealthIDI

Reinsurance revenue

CORPORATE GOVERNANCE

Engineering

36

8. Financial Review
Underwriting costs and expenses (2019-2023) IFRS 4

Gross claims paid

2022
(SR ’000)

2021(SR ’000)

2020(SR ’000)

2019(SR ’000)

2018(SR ’000)(537,845)(471,216)(481,191)(436,701)(389,327)

Retroceded premiums

75,97461,707

181,476

60,006

24,638Net claims incurred(595,044)(565,312)(391,980)(417,070)(404,054)

Policy acquisition costs andprofit commissions(218,199)(232,404)(194,682)(172,781)(172,472)

Other underwriting expenses(1,995)(5,063)(4,002)(3,616)(1,997)

Total underwriting costs and expenses(815,238)(802,779)(590,665)(593,467)(578,523)

Net underwriting income

127,468

71,626

69,14967,24451,560

Net reinsurance finance (expense)/income
2022

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

2023

net

(SR ’000)

reinsurance
contracts(SR ’000)

retrocession
contracts(SR ’000)(SR ’000)

2,414(39,110)(29,344)

3,909(25,435)(9,370)reinsurance
contracts(SR ’000)

retrocession
contracts(SR ’000)Interest accreted(41,524)

Effect of changes in interest rates andother financial assumptions

net(25,849)

115(25,733)(11,906)

2,536

Effects of measuring changes in estimates at current
rates and adjusting the CSM at rates on initial recognition

8,285

17,67425,95942,491(17,584)

24,908Foreign exchange differences

4,237

22

4,259

11,966(584)

11,381(54,851)

20,225(34,626)

13,207(11,723)

1,484

Total

2023
(SR ’000)IFRS 172022(SR ’000)
IFR17

2021
(SR ’000)IFRS 42020(SR ’000)IFRS 42019(SR ’000)IFRS 4

Net income for policyholder operations

9,924

5,359

2,571

3,432

3,518

Net income for shareholders operations
before Zakat

158,562

91,31853,31560,69245,444

37

OVERVIEW

8. Financial Review
Investment income

Investment income from financial investments not measured at FVIS

2023
(SR ’000)

2022(SR ’000)

58,46038,728(25,289)

Net income/(loss) from financial investments measured at FVIS

6,243

Investment management expenses(4,208)(3,719)Provision for expected credit losses(108)(1,340)Net investment income

60,388

8,379

Share of profit of equity accounted investee

40,071

33,105

Total net investment income

100,458

41,4842023(SR ’000)

2022(SR ’000)

158,562

91,318

Zakat and tax charge for the year

(33,948)(15,266)

Net income for the year after Zakat and tax attributable to the shareholders

124,429

76,052

1.4

0.85

2023
(SR ’000)

2022(SR ’000)

124,429

76,052711(8,285)(3,734)(462)

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Investment income increased due to the high interest environment which increased returns from investments in themoney market and fixed-income investments. Investment assets were also actively allocated between money market
funds and listed equity into fixed term deposits to lock in higher yields for longer.

Basic and diluted earnings per share for the year (SR)8.5 COMPREHENSIVE INCOME

Net income for the period after Zakat and tax attributable to shareholder
Financial investments at FVOCI – net change in fair value
Re-measurement loss on employees’ end of service benefit obligations
Share of foreign currency translation reserve of an equity accounted investee
Total comprehensive income for the year

5,038

(8,258)

126,445

59,047CORPORATE GOVERNANCE

Total income for the year before Zakat and tax

ESG REPORT

8.4 NET INCOME

38

8. Financial Review
8.6 ASSETSThe Company’s growth was also reflected in assets, which increased by SR 433 million compared to last year.
This rise is mainly attributed to improved liquidity, a strengthened investment portfolio, increased insurance activities,
enhanced equity investments, and overall financial growth.

DIRECTORS’ REPORT 2023

Restated
01 January 2022
(SR ’000)

Cash and bank balances

87,90531,55727,807

Financial investments at fair value through income statement

154,456

272,654762,723

Financial investments at fair value through other comprehensive income

141,633

119,92192,871

Financial investments at amortized cost

1,127,330

1,030,134

496,236

Reinsurance contract assets

77,827105,037

76,794Retrocession contract assets

439,593

189,246

211,549

Prepaid expenses, deposits and other assets

303,917

199,272

136,319

Property and equipment, net

37,13936,37937,156

Investment in an equity accounted investee

208,990

160,687

132,580

Statutory deposit

89,10089,10089,100Accrued income on statutory deposit

22,05722,08420,962

2,689,947

2,256,070

2,084,097

Restated
31 December 2023 31 December 2022
(SR ’000)(SR ’000)

Restated
01 January 2022
(SR ’000)

Total assets

8.7 LIABILITIESThe Company’s total liabilities grew by 25%, due to business growth during the year.

Margin loan payable
Reinsurance contract liabilities
S A U D I R E I N S U R A N C E C O M PA N Y

Restated
31 December 2023 31 December 2022
(SR ’000)(SR ’000)

Retrocession contract liabilities

56,79756,79756,797

1,287,902

919,992

864,300

190

12,156–

Accrued expenses and other liabilities

112,072

195,322

159,608

Provision for employees’ end of service benefits

18,633

13,86812,288Provision for Zakat and tax

41,54817,533

15,266

Accrued commission income payable to SAMA
Total liabilities including reinsurance operations’ surplus

25,982

23,21920,962

1,543,125

1,238,887

1,129,222

39

OVERVIEW

8. Financial Review
8.8 EQUITY

Restated
01 January 2022
(SR ’000)

Share capital

891,000

891,000

891,000

Statutory reserve

67,93143,04534,750Retained earnings

194,358

94,81527,058(6,468)(11,677)

2,067

1,146,822

1,017,184

954,875

Other reserves
Total equity

8.9 DIVIDENDS
No cash dividends were distributed for 2023.

Dividend Policy
To achieve suitable returns to the Company’s
shareholders in one or more of the following:(1) Distribution of cash dividends to the shareholders
taking into consideration the financial position of theCompany, solvency margin requirements, available
credit lines, and the general economic situation.
(2) Stock dividends taking into consideration therequirements and conditions related to retained
earnings and other stockholders’ equity in thebalance sheet.
(3) Shareholders who are registered at the end of trading
before the General Assembly at which dividend
preeminent is approved will be entitled for thedividends.

(4) The Company pays the profits to be distributed tothe shareholders at the dates specified by the Boardof Directors. According to the Articles of Associationof the Company, profits are distributed according
to the decision of the General Assembly, and this isdone as follows:z

Set aside Zakat and assessed income tax.

z

Set aside 10% of the profit to form a statutory
reserve and the Ordinary General Assembly may
stop this appropriation when the total reserve
reaches 30% of the paid-up capital.

z

Once determining the stock shares in net profits,
the Ordinary General Assembly has the right toform other reserves, to the extent that it achieves
the interest of the Company or ensured distributionof fixed profits to shareholders.

zAfter that, the first payment shall be distributed tothe shareholders, with the condition that it is notless than 1% of the paid-up capital.

ESG REPORT

Restated
31 December 2022
(SR ’000)CORPORATE GOVERNANCE

31 December 2023
(SR ’000)

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Shareholder equity increased by 13% from SR 1 billion to SR 1.146 billion by end of 2023 reflecting profitability
improvement.

40

8. Financial Review
8.10 ZAKAT, TAXES, FEES, AND OTHER CHARGES
Paidamount(SR ’000)

Outstanding amount at
end of financial period(SR ’000)

The Company’s share according to Zakat and tax
regulations in the Kingdom

10,11741,548WHT

The Company’s share according to Zakat and tax
regulations in the Kingdom

14,0649,360

VAT

The Company’s share according to Zakat and tax
regulations in the Kingdom

69,08623,203IA fees

Supervision fees for the Insurance Authority

8,642

218

GOSI

Social insurance contributions for Company employees
to the General Organization for Social Insurance

3,275

310

Description

Reasons

Zakat and income tax

8.11 SOLVENCY AND RATINGS A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Capital adequacy
Solvency Margin

299%

127%

(SAMA)(S&P)

and other large risks at relatively modest levels, while
ensuring its capital adequacy remains above the “AAA”
level in S&P’s model.
The stable outlook persists, indicating S&P’s confidence
that Saudi Re will uphold its excellent capital adequacyand sustain profitable expansion and diversification overthe coming years.
S&P continues to view Saudi Re’s governance practices
as effective and appropriate, with consistency in strategy
and management expertise contributing positively to theCompany’s operations.

Credit ratings
S&P Global
long-term issuer credit andinsurer financial strength

regional scale
ratingA-

gcAAA

Moody’s
Insurance Financial
Strength Rating(IFSR) international scale

Insurance Financial
Strength Rating (IFSR)National scale

A3

A1.sa

Saudi Re has continued its trajectory of strengthening its
competitive position through profitable business growthand diversification, both domestically and internationally.
The Company has maintained its exposure to catastrophe

Saudi Re’s financial rating reflects several key factors:(i) Its strong brand and market position in Saudi Arabia,
where it operates as the sole professional reinsurer,
coupled with a growing presence in targeted markets
across Asia, Africa, and Lloyd’s. (ii) The Company’s
preferential position in the Saudi market due to its
right of first refusal on a portion of premiums ceded byprimary carriers. (iii) Strong asset quality demonstrated
by a conservative investment portfolio. (iv) Good capital
adequacy, supported by robust capital levels and a
relatively modest exposure to natural catastrophe risk.
(v) Strong financial flexibility characterized by
non-existent leverage and favorable access to capital
markets in Saudi Arabia, facilitated by its listing on the
Saudi stock exchange and broad investor base.

The following table summarizes the financial informationof PHBL as included in its own Financial Statements.
The table also reconciles the summarized financial
information to the carrying amount of the Company’s
interest in PHBL.

2023(SR ’000)

2022(SR ’000)

49.90

49.90

Total assets

1,333,804

1,123,931

Total liabilities

944,322831,244

Net assets (100%)

389,482

292,684

Company’s share of net assets (49.90%)

194,351

146,049

Goodwill

14,638

14,638Percentage ownership interest (%)––

Carrying amount of interest in associate

208,990

160,687

Profit from continuing operations

80,302

66,342Other comprehensive income – Impact of foreign currency exchange

10,096(16,550)

Transition to IFRS 17

Total comprehensive income (100%)

90,39849,792Company’s share of profit

40,071

33,105Company’s share of Other comprehensive income – Impact of foreign currency exchange

5,038-8,258Company’s share of total comprehensive income (49.90%)

45,10924,846

On 4 March 2024 (corresponding to 23/08/1445H), Saudi Re announced signing a share purchase agreement forthe sale of its entire stake in Probitas Holdings (Bermuda) Limited (PHBL). Saudi Re has signed a share purchaseagreement with Aviva Insurance Limited for consideration of GBP 120 million, to be paid in cash, subject to final
closing adjustments.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Representing Saudi Re Mr Abdullatif Al-Fozan, Chairman
and Mr Fahad Al-Hesni, Managing Director are holding
Non-Executive Director positions of PHBL and its
Subsidiaries (Probitas Group) Boards. By virtue of these
Board memberships an indirect interest is present in thereinsurance contracts written by Saudi Re from PCCL.
(As disclosed in the Related Party Transaction section
on page 107).

ESG REPORTOn 6 October 2017, Saudi Re acquired 49.9% of theordinary shares of Probitas Holdings (Bermuda) Limited(“PHBL”) for a total of USD 25 million (SR 94 million).
Subsequently in June 2020 a further USD 985,840(SR 3.7 million) was invested in PHBL. Saudi Re
has accounted for this investment as an associate(equity accounted investee). The carrying value of theinvestment as at 31 December 2023 is SR 208.9 million.
PHBL operates in insurance and reinsurance businesses
including Lloyd’s market in London, United Kingdom.
Probitas Group via its wholly owned subsidiary Probitas
Corporate Capital Limited (PCCL) provides capital to
Syndicate No. 1492 which is a syndicate at Lloyd’sof London specializing in property, construction andcasualty (re)insurance solutions. Probitas Managing
Agency Ltd. which is a wholly owned subsidiaryof Probitas Group manages the Syndicate 1492.

In addition to its investment in PHBL, Saudi Re also
writes reinsurance contracts from PCCL, During
the financial year these contracts had an estimatedreinsurance revenue value of SR 127.9 million.
Contribution of these contracts to the underwriting
profitability of Saudi Re’s book is shown within the
Segmental Information under the headings; Specialty
in Business Segments and Other Territories inGeographical Segments.

CORPORATE GOVERNANCE

8.12 RETURN ON INVESTMENT IN PHBL

41

OVERVIEW

8. Financial Review

42

8. Financial Review

ESG
REPORTS A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

43
Sustainability
Strategy

48
Sustainability
PerformanceWe are devoted to propelling Saudi Re to the forefrontof the regional reinsurance landscape. Our tirelesscommitment to fostering financial strength andsustainability is fueled by a profound desire tocontinually create enduring and substantial value forour esteemed shareholders and valued clients.

9.1 OUR SUSTAINABILITY APPROACH

Our customer relations are guided by the Saudi Re
Code of Professional Conduct and Ethics, ensuring fairand ethical treatment of clients. Anchored by a robust
Sustainability and Social Responsibility Policy, approvedat the Annual General Meeting (AGM) in 2022, we
integrate core sustainability principles into our policies,
procedures, and practices. This approach guides oursustainability journey and reflects our dedication tocorporate responsibility.
In order to actively contribute to the objectivesof Saudi Vision 2030, Saudi Re places a strategicemphasis on fostering economic growth throughproactive efforts to create opportunities for citizens.

Our focus on gender equality is evident in our
empowerment of women in senior roles. We promote
Saudization across our workforce; through annual
increments in Saudization ratios, we foster a dynamic
and skilled workforce, while furthering the nation's
developmental goals.
Saudi Re's sustainability strategy further contributes
to the Kingdom's development as we strive to maximize
local content contribution by retaining reinsurance
premiums within the Kingdom, representing Saudi
Arabia in the international market, and contributing
to the non-oil GDP.

OVERVIEW

Sustainability is integral to our Vision and Mission,
shaping our decision-making process as a Shariacompliant company. Upholding ethical duties, we
safeguard people and businesses against significant
risks, building a framework of unwavering commitment
toward transparency, accountability, and environmental
and social consciousness.

CORPORATE GOVERNANCE

Saudi Re aims to be a regional leader in sustainability,aligning our strategic vision with principles thatencompass Environmental, Social, and Governance(ESG) considerations. In keeping with our Islamicvalues, our commitment extends beyond immediatestakeholders to include protecting the environment,
supporting communities, developing our human capital,
and actively participating in global initiatives to address
climate change. Through this comprehensive approach,
our goal is not only to enhance economic value for
the Company and our clients but also to establish aprecedent for responsible business practices in theregion.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE43

ESG REPORT

9. Sustainability Strategy

44

9. Sustainability Strategy
9.2 SUSTAINABILITY PILLARSPEOPLE AND

NATIONAL

COMMUNITY CARECONTRIBUTION

14 Develop talent of workforce
and sector

1 Contribute to Saudi
Vision 2030

15 Create a diverse andinclusive work environment

2 Carry out sustainableprocurement

16 Prioritize health andwell-being of workforce
17 Investment in community
development
18 Foster relationships withkey stakeholders

STRONG GOVERNANCEAND ECONOMIC

DIRECTORS’ REPORT 2023

6

PERFORMANCE

1

3 Operate withtransparency, openness
and accountability

2
3

SUSTAINABLE
INSURANCE

11 Integrate ESG criteria
in underwriting

5

4 Foster an ethical andcompliant culture
5 Strive for sound financial
performance4

12 Invest responsibly
13 Improve financial inclusion/access to insurance

RESPONSIBLES A U D I R E I N S U R A N C E C O M PA N Y

CUSTOMER RELATIONSENVIRONMENTAL
PROTECTION

9 Climate change andenergy transition
10 Environmental
management

6 Maintain high standardof client service andsatisfaction
7 Introduce innovative andsustainable products andservices
8 Ensure adequate dataprotection and data
privacy1. Mohammed ElGari
2. Salah Shalhoob

Some of the specific requirements that SRB will
manage are:z

Help establish a robust Sharia governance mechanism
including the formulation and management of the
Sharia Committee and liaising with them to ensure thatall products and services are duly accredited and inline with the rulings of the Sharia Committee.

zAssist in establishing a qualified and independent
Sharia Committee and a competent Sharia audit
resource.

z

Coordinate with various departments, heads offunctions and taskforces on Sharia issues, and provide
support during Sharia audits.

z

Contribute to the development and enhancement of
products and new offerings, coordinating with relevant
stakeholders for feedback.

z

Ensure that all products and services offered by us areapproved and certified by the Sharia Committee.

zSupervise the internal Sharia audit to verify compliancewith Sharia principles and standards.

z

Disclose relevant information to management
regarding the Sharia governance framework,
Sharia Committee rulings, product (non-compliance)risks, Zakat verification and purification of
non-permissible income.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCETo achieve this, we have appointed Shariyah Review
Bureau (SRB) who helps facilitate Sharia related
discussions, product research, and Sharia reporting
while working with the heads of functions to augment
Sharia principles and rulings at different levels of theorganization. SRB will also help ensure that the membersof the Sharia Committee operate with independence andautonomy that warrants effective decision-making andSharia assurance practices.

For the purpose of effective Sharia governance, tworenowned and qualified Sharia scholars have been
assigned. The Sharia Committee independently issues
pronouncements and these rulings are binding on the
Company. The names of the Sharia Committee members
are provided below:

ABOUT THE SHARIYAH REVIEW BUREAU (SRB)
SRB is a Middle East-based firm with an international
scholarly platform of +37 scholars covering 4 major
school of jurisprudences and spreading over 16
countries including Saudi Arabia, Bahrain, UAE,
Malaysia, Pakistan, UK, Germany and Russia. SRB islicensed and regulated by the Central Bank of Bahrain
and has been serving the Islamic financial industry foralmost 20 years and is committed to empowering Sharia
compliance for businesses around the world.

9.4 STAKEHOLDER ENGAGEMENT
Stakeholders play a pivotal role in Saudi Re’s
sustainability, success, and value creation. Oursustainability strategy is built on the importance
we attribute to all stakeholders: clients, brokers,
shareholders, analysts, investors, employees,
regulatory bodies, suppliers, and business partners.
This commitment is evident in the formulation of ourSustainability and Social Responsibility Policy and how
we identify and prioritize material matters.

ESG REPORT

Saudi Re strives to adhere to Sharia Governancepractices through the establishment of a Sharia
Committee to ensure independent administration andSharia reporting.

SHARIA COMMITTEECORPORATE GOVERNANCE

9.3 SHARIA GOVERNANCE

45

OVERVIEW

9. Sustainability Strategy

46

9. Sustainability Strategy

Stakeholder

Mode of engagement

Frequency of engagementzzInternal audit
Audit committeez External auditz Compliance departmentz Technical committeez Business risk committeez Annual reports

As per regulatory requirement,or on an annual basis.

CLIENTS AND BROKERSz

Social media channels
including LinkedInz Customer service helpdesks
z Market webinars
z Regional/International industry eventsz Cybersecurity framework

Regular and routine engagement.

SHAREHOLDER,zz

Annual reports
General Assembly Meetingsz Financial results in a quarterly basis
z Press releases
z Investor conferences andone-on-one meetingsz IR Mobile Appz Risk Appetite Framework

Continuous engagement throughopen and transparent formal channels
maintained with shareholderszProcurement departments
Annual reportsz Credit agency reports

Regular and routine engagement.

zCommunity donation drives
Event sponsorshipz Training sessions/workshops

Event/project based engagement
and responsive engagement.

zContinuous engagement throughtransparent and open communication
Channels.

REGULATORY BODIESS A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

ANALYSTS AND INVESTORS

SUPPLIERS AND
BUSINESS PARTNERS

SOCIETYzz

EMPLOYEESHuman Resources teamTraining sessions and workshops
z Career development programsz Employee engagement programz Whistleblowing policyz Saudi Re’s intranetz Health and life scheme coveragez47

OVERVIEW

9. Sustainability Strategy

The following table and materiality map visually present
the key material topics of Saudi Re, presented in orderof importance:

4

10
12

13

16
15
18
17

14

Significance of impacts
ImportantMore important

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

7

9
11

2

5

Most important

Rank

Material Topic

1

Corporate governance2

Data protection and cybersecurity

3

Talent development

4

Serving the national strategy

5

Climate change and energy transition

6

Ethics and compliance

7

Financial performance8

Customer satisfaction

9

Diversity and inclusion

10

Integrating ESG in insurance

11

Innovation and digitalization

12

Investing responsibly

13

Access to insurance

14

Sustainable products and services

15

Community investment

16

Health and well-being

17

Environmental management

18

Sustainable procurement

ESG REPORTTo ensure compliance with material topics, Saudi Re
documents and communicate clear policies, conduct
regular training, monitor and report compliance, perform
internal audits, assess risks, establish accountability,
seek external certifications, continuously improve
processes, engage stakeholders, use technology,
and stay updated on legal and regulatory changes.

18

9.6 MATERIAL MATTERS
Saudi Re ensures the currency and relevance of its
policies for managing material topics through regularreview cycles, stakeholder engagement, monitoring
industry trends, risk assessments, benchmarking,legal compliance checks, internal audits, and periodic
materiality assessments. This proactive approachensures policies remain aligned with the Company’s
objectives, evolving risks, and stakeholder expectations.

3
6

CORPORATE GOVERNANCE

Saudi Re's Sustainability and Social Responsibility Policy
serves as the compass for managing material topics.
With the Company and its stakeholders in focus, weprioritize Environmental, Social, and Governance (ESG)
considerations. Corporate governance heads our listof material factors, followed by cybersecurity, talentdevelopment, alignment with the national strategy,
ethics and financial performance, and customer
satisfaction. Other critical considerations are inclusivity,
integration into the insurance sector, innovation,
responsible investing, and access to insurance.
Additionally, we underscore the significance ofsustainable products, community investment,
well-being, environmental management, andsustainable procurement.

Influence on stakeholder assessment
and decisions

9.5 SUSTAINABILITY POLICY

48

10. Sustainability Performance
10.1 OUR NATIONAL CONTRIBUTIONS A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Saudi Re remains deeply committed to advancing theobjectives outlined in Saudi Vision 2030. As a Saudi
national business with a presence in over 40 countries
worldwide, we take pride in our active role in contributing
to global economic growth and diversification. We playa pivotal role in creating employment opportunities,
fostering the training and development of Saudi
nationals, and cultivating expertise within the insurance
and financial sector.

Saudization 2023

80%
2019

2020

2021

2022

71

71

75

78

Continuing our efforts to increase the Saudization
Ratio annually, we align closely with the Vision 2030
goals for local workforce development. Our recruitment
strategies prioritize the inclusion of Saudi citizens, andwe are dedicated to providing avenues for their career
progression through ongoing training initiatives. In
particular, we focus on empowering and encouraging
female professionals to assume leadership roles within
the Company, thereby fostering a more inclusive
corporate culture.
Through specialized training programs and workshops,
we contribute to enhancing technical knowledge in theinsurance and reinsurance industry, thereby supporting
the broader development of professionals in the financial
services sector across the region.
Our commitment to the Kingdom’s development
is further exemplified through our robust ESG andsustainability initiatives. In January 2023, Saudi Re
launched the Future Leaders Program, which identifies
and grooms promising individuals for leadership roles.
This program aligns with Vision 2030’s objective ofcultivating skilled and capable leaders for the future.

Saudization rate of
Senior Management (2023)

83%
2019

2020

2021

2022

57

77

83

80

Total National employees(FTE) (2023)

91%
2019

2020

2021

2022

45

46

54

60

Our contribution for 2023

Highlights

LOCAL CONTENT

Saudi Re is committed to aligningits objectives with the aim of growing theinsurance sector’s role in boosting local
content for risk coverage.

In alignment with the circular issued by the
Insurance Authority (IA) on 26 October 2022,
pertaining to the implementation of the new
Reinsurance Cession mechanism in the Local
Reinsurance Market, the directive marks
the commencement of the initial phased
cession plan. This plan involves a progressive
increment to a minimum of 20% in 2023, 25%
in 2024, and 30% in 2025 for all Reinsurance
Treaties, encompassing both proportional andnon-proportional arrangements, taking effectfrom 01 January 2023.

SERVICE EXPORTz

Total reinsurance revenuez

Saudi Re made substantial
advancements in bolstering theKingdom’s non-oil GDP by retaining
reinsurance premiums within the
country, supporting local content
development, and also exporting
reinsurance services. This effort isin keeping with the national
objective of boosting non-oil GDP,as outlined in Saudi Vision 2030.
Implementation of local session started
at 20% in 2023, and is expected toprogressively increase to 30% by 2025.

KSA vs International
2023
SR

2022
SR

KSA

216,820,889

255,591,946

Other Middle
Eastern Countries

67,953,477

82,534,270

Africa16,365,603

32,509,953

Asia

196,873,935

201,319,245

Other territories

129,173,121

125,042,504

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Area of focus

49

ESG REPORT

10. Sustainability Performance

SR 129,173,121

SR 67,953,477

SR 216,820,889

Total Reinsurance Revenue(2023)Asia

SR 627,187,025

AfricaSR 16,365,603

KSA

SR 196,873,935

CORPORATE GOVERNANCE

Other territories
Other Middle EasternCountries

50

10. Sustainability Performance

Area of focus

Our contribution for 2023

TRAINING AND EDUCATION

Highlights

Ongoing training and developmentof staff is a priority for Saudi Re,
for new and existing employees.

Value invested in training
and education 2023

55 hours per
employee

SR 700,000

Supported employees
to obtain specialized
professional certificates(2022 – SR 690,890)

Sponsored a number ofconferences on insurance
and actuarial services

YOUTH DEVELOPMENTz

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

AND SAUDIZATIONzPRODUCT DEVELOPMENT

In 2023, 80% of Saudi Re’s workforce
consisted of Saudi nationals, and
30% of them were under the ageof 30; reflecting our commitment to
Saudization and youth development.

30% (2022 – 23%)
Saudization 2023

The Future Leaders Program waslaunched in 2023 to contribute to
the development of young talent.

z

In 2023, Saudi Re remained focusedon preparing its infrastructure
to embrace the new accounting
standard, IFRS 17. Through diligent
efforts, it ensured compliance andoperational efficiency, meeting all
required deadlines.

z

Saudi Re continues to play a vitalrole in supporting the local market
by actively participating in thedevelopment of new high-capacity
products. One notable example isInsurance for Decreasing Income(IDI), where Saudi Re has been
instrumental in both productdevelopment and offering reinsurance
support. This underscores Saudi Re’s
ongoing commitment to fostering
innovation and bolstering theinsurance landscape in the region.

AND INNOVATION

Percentage of employees
below 30 years of age (2023)

80%z

IFRS 17 has been successfully adopted,.
Comprehensive training has been
provided to all relevant departments,
including Management, the Boardof Directors, Underwriting, Actuarial,
Finance, and IT. The adaptation process
is now complete, and the organization
is fully complaint with the requirementsof IFRS 17.

z

A newly implemented Disaster Recovery(DR) setup has been put in place,boasting simplified DR management,
significantly reduced Recovery Time
Objective (RTO), and Recovery Point
Objective (RPO). This overhaul ensuresheightened business resilience, offering
assurance that Saudi Re will seamlessly
serve its clients even amidst disasters.
Notably, the system is designed toactivate disaster recovery within an
impressive 5-minute timeframe, ensuring
minimal disruption to operations andswift restoration of services.

51

OVERVIEW

10. Sustainability Performance
10.2 SUSTAINABLE SUPPLY CHAIN

Saudi Re ensures the following measures are in place,to improve procurement practices, strengthen the supply
chain, and promote sustainability amongst suppliers
and partners.

At Saudi Re, our approach to procurement extends
beyond conventional practices, incorporating a thoroughassessment of the sustainability impact of the products
we purchase. Our focus on local content development
and meticulous measurement of local spendingreflects our dedication to advancing the objectives of
Saudi Vision 2030. Through prioritizing local sourcing,
we not only establish reliable partnerships but also
actively contribute to the growth of our economy. This
strategic approach not only aligns with our sustainability

Continuation of the Digital Signature
Project, ensuring the authentication,
integrity, and non-reproduction of
documents; with an ongoing reduction
in paper usage.

Training for all Saudi Re staff on the
Code of Conduct.

Credit rating assessments to evaluate
the financial standing of Saudi Re’s
reinsurance business partners.

Continuous improvement of supplier
screening and assessment criteria toensure higher standards and reliability.

Streamlined procurement process
for enhanced efficiency and costeffectiveness through increased
automation and integration withrelated functions.

Screening of all suppliers by theCompliance Department to ensure
selection of reputable vendors.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Throughout 2023, Saudi Re strengthened engagementwith the Middle East Investor Relations Association(MEIRA), Middle East Insurance Association, and theGeneral Arab Insurance Federation (GAIF).

Data protection and cybersecurity measures institutedby the Company for suppliers, as outlined in the SAMA
Cybersecurity Framework, are described in the Client
Relations sections on page 57.

ESG REPORTAt Saudi Re, our commitment is anchored in sustaining
an ethical supply chain that prioritizes sustainability andresponsibility in our procurement processes. We upholdtransparency in our selection procedures, maintaining
high standards through comprehensive evaluation anddocumentation of all our business partners prior to
engaging in any transactions.

CORPORATE GOVERNANCE

Suppliers provided with cybersecurity
awareness to enhance their security
posture.

52

10. Sustainability Performancecommitment but also positions us as a key player in driving positive change and economic growth within ourcommunity and the broader national landscape.
Total procurement
spending 2023

GRI 204-1 Percentage of total
procurement spending on local
suppliers 2023

SR 58,934,701
2019 – 17,287,799/ 2020 – 17,821,956/
2021– 22,274,905/ 2022 – 11,195,370

47%
2019 – 77/ 2020 – 81/
2021– 77/ 2022 – 84

Number of local
suppliers 2023 (Nos.)

Amount spent on
local suppliers 2023

98

SR 27,905,761

2019 – 92/ 2020 – 82/
2021– 146/ 2022 – 81

2019 – 13,229,777/ 2020 – 14,517,512/2021– 17,085,163/ 2022 – 9,385,932

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

10.3 CORPORATE GOVERNANCE
Saudi Re is dedicated to maintaining the highest
standards of Corporate Governance, in alignment with
the Company's status as a leading reinsurer with a global
presence and its legacy as the first reinsurance company
established in Saudi Arabia.
The Company is steadfast in its pursuit of complianceboth in letter and in spirit, adhering to national andinternational regulations. Saudi Re actively cultivatesa culture and environment within the organization that
fosters trust, transparency, and accountability. The
governance framework at Saudi Re centers on thecompetency and accountability of the Board of Directors
and Executive Management, ensuring the protection of
the rights of all stakeholders.
BOARD EXPERTISE
Leading the Company is a seasoned Board of Directors
entrusted with the implementation and continuous
review of stringent controls across all operations. Saudi
Re's Board diligently oversees and ensures the integrityof financial reporting and internal control systems,
evaluates the appropriateness of the disclosure process,and approves key policies.
Comprising of 3 Non-Executive, 7 Independent, and1 Executive member, the Board collectively holds animpressive track record of over 20+ years of experienceand expertise across a number of fields and disciplines.
Their wealth of experience steers the Company within
the framework of regulatory requirements.
POLICY FRAMEWORKThe operational activities and culture of compliance
at Saudi Re are regulated by the following policies:z

Corporate Governance policyzConflict of interest policyzWhistleblowing policyzSustainability and social responsibilityzRemuneration and compensation policyz

Dividend policyzNomination and Remuneration Committee meeting
selection criteriaz

Audit Committee selection criteria

ANNUAL REVIEWzThe Nomination and Remuneration Committee
performed its annual evaluation of the Board's
independence and assessed related-party contracts
and transactions.

z

Saudi Re updated its Corporate Governance Policy
during the last year, aligning it with shifts in market
conditions and regulatory demands. The Company
remains committed to conducting comprehensive
reviews of all foundational policy-level materials,
including Corporate Governance policies, charters,
and related documents.

z

The Corporate Governance policy was reviewed
and received approval from the Board of Directors.
The Compliance Department simultaneously monitors
governance to ensure compliance with policies andregulations.

Ownership structure
Foreigninvestors

Ahmed Hamad
Algosaibi Brothers Co.

4%

5%

Public91%
Direct investor engagements

Shareholder engagement

Investor meetings

Saudi Re maintains an unwavering commitment tobuilding reliable and transparent relationships withinvestors and key stakeholders, through a proficient
Investor Relations function. Acknowledging the pivotal
role investors play in our success, we prioritize thedelivery of timely and accurate communications. Our
dedicated team ensures consistency in updates, financial
disclosures, and interactive engagements to empower
informed decision-making. In continuously meeting new
industry standards, Saudi Re shows a commitment tosurpassing investor expectations, thereby reinforcing
trust and confidence in our Company.

(Nos.)

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Saudi Re implements a thorough induction process
for new Board members, ensuring a comprehensive
understanding of their roles, responsibilities, and legal
and regulatory requirements.

15
12
9
6
3
0
2019

2020

2021

2022

2023

In 2023, the Company employed numerous measuresand platforms to actively engage with stakeholders.
These channels included:

Investor conferences/calls– Earnings calls

5

ESG REPORTz53

OVERVIEW

10. Sustainability Performance(Nos.)– Investor roadshows and conferences– Publication of declarations, announcements& articles through mainstream financial media,
and appropriate corporate disclosure throughthe Saudi Exchange – Tadawul

4
3
2
1

– Saudi Re’s IR App and official website (saudire.net)– Participation in market events, conferences
and workshops

0
2019

2020

2021

2022

2023

CORPORATE GOVERNANCE– General Assembly Meetings

54

10. Sustainability Performance
10.4 BUSINESS ETHICS AND COMPLIANCE
The workforce at Saudi Re adheres to a rigorous and proactive Code of Professional Conduct and Ethics. This code
mirrors the Company's unwavering commitment to a robust anti-corruption and anti-bribery culture, outlining the
expected ethical conduct of employees.
To ensure awareness, commitment, and compliance among employees, the Compliance Department, supportedby the Legal Department, assumes pivotal roles. The Compliance Department engages in ongoing communication
with employees, fostering awareness, and delivering essential training to uphold and reinforce adherence to ethicalstandards.
In 2023, Saudi Re implemented the following measures in accordance with the Company's policies:

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Process and process
improvements

Employee awarenessand compliance

Certificationand Licenses

Policy andmanagement support

Implemented a new
Know Your Customer (KYC)
approval process throughthe system.

Conducted training programs,
reaching all staff; Anti-Money
Laundering (AML), Combating
Terrorism Financing (CTF)/CTF
and the new Companies Law.

Shariya
Certificate

Renewed Anti-Money
Laundering (AML) Policy
with modifications
to cover all laws andregulations.

Utilized Saudi Re Portal
for communicating criticalinformation regarding laws andregulations to all staff.

All new recruits underwent acriminal record screening process.

Shared all relevant market
information, circulars, andregulatory updates withrespective departments,
to keep them informed about
upcoming developmentsin the insurance market.

All new recruits underwent an
induction process whereby new
employees take a rotation with
Compliance and AML before
commencing work.

Utilized Saudi Re Portal
for sharing and raisingawareness on the Company’s
Code of Ethics.

Communicated importance of
ethics via regular emails and/or employee meetings. And
conducted training sessions on
Ethics, for entire organization.

Updated Underwriting,
Claims, and TechnicalAccounting policies
and the related controls.

Anti-Money Laundering & Combating Terrorism
Financing Policy and ProcedureszAnti-Fraud Committee Charterz

Anti-Fraud PolicyzClients Acceptance PolicyzCompliance CharterzCompliance Policyz

Insider Trading Prevention Policyz

The Code of Professional Conduct and Ethicsz

Reporting Non-Compliant Practices“Whistleblowing” Policy

Conflict of Interests PolicyzDisclosure and Transparency Policy

To uphold compliance with both national andinternational regulations, as well as best practices,
Saudi Re’s policies and practices are guided by andadhere to the following:z

Insurance Consumer Protection Principles issued
by Saudi Central Bankz

Corporate Governance Regulations issued by CapitalMarket Authority (CMA) of the Kingdom of Saudi
Arabia (KSA)z

Insurance Corporate Governance Regulation issued
by the Saudi Central Bankz

Audit Committee Regulations Issued by Saudi
Central Bank

2023

2022

2021

2020

2019

Employees dismissed and/or disciplined for corruption (Nos.)

0

0

0

0

0

Percentage of operations assessed for risks related to corruption (%)

0

0

0

0

0

Percentage of employees trained on risks related to corruption (%)

98

98

97

90

85

Percentage of employees trained on risks related to money launderingand financial crime (%)

98

98

95

93

91

Saudi Re’s Internal Audit Department conducts an annual review of internal controls, based on the insights gatheredfrom a comprehensive, company-wide risk-based audit. Simultaneously, the Compliance and Risk Management
function is actively engaged in educating employees, establishing standards, and ensuring adherence to relevant
regulations. The Company is dedicated to fostering an ethical and compliant culture, integrating best practices andeffectively managing inherent risks across its business lines.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCEzz

ESG REPORT

To foster a culture of compliance and ethics within the
Company, Saudi Re has implemented thefollowing policies:

55

OVERVIEW

10. Sustainability Performance

2023

2022

2021

2020

2019

Total incidents of non-compliance with laws and regulations (Nos.)

1

1

1

0

0

Total number of non-monetary sanctions (Nos.)

0

0

0

0

0

Total amount of legal and statutory fines and settlements (SR)

0

0

0

0

0

40,000 20,000

0

0

0

SASB Metric (FN-IN-270a.1)
Value of any monetary losses as a result of legal proceedings (SR)CORPORATE GOVERNANCE

Non-compliance with laws and regulations

56

10. Sustainability Performance
Commitment to strengthening compliance
Saudi Re has established dedicated departments and functions to secure the buy-in, engagement, and commitment
of Senior Management, ensuring the ongoing advancement of the Company’s culture of ethical conduct andcompliance. This commitment to compliance with regulations and best practices aligns with the Company’s broader
dedication to promoting sustained, inclusive, and sustainable economic growth within the Kingdom. These efforts
extend to providing full and productive employment, fostering decent work, and aligning with the overall vision tostrengthen the means of implementation and revitalize the global partnership for sustainable development.

SYSTEMIC RISK MANAGEMENT
Description of approach to managing
capital and liquidity-related risks
associated with systemic noninsurance activities.

Saudi Re has its own Risk Appetite, which is as follows:

SASB-FN-IN-550a.3

1. At least 125% of required economic capital, according to Saudi Re Internal
Capital Model

APPROACH TO MANAGING CAPITAL:

Saudi Re should ensure the available capital is above the highest of the followings:

2. At least 125% of SAMA Required Solvency
3. At least 125% of S&P required capital at A level

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

APPROACH TO MANAGING LIQUIDITY:The Company’s Investment Policy Statement (IPS) dictates how the Company should
invest, including the liquidity of each asset invested and the overall liquidity of theinvestment.
The Company also constantly monitors its liquidity by using indicators such as quick
ratio (current assets divided by current liabilities) to ensure the liquidity is within the
Company’s criteria.
Refer the Risk Management section on page 108 for more information on the
Company’s approach to managing risk.

10.6 OUR CLIENTS IN FOCUS

2023 marked a pivotal year for Saudi Re. Our primary
focus remains establishing ourselves as a regional
leader by delivering innovative and technically advanced
reinsurance solutions tailored to our clients’ specificneeds. Our dedication to this vision has translated
into a remarkable year of growth a robust financial
performance.

At Saudi Re, delivering outstanding service to ourclients is fundamental to fostering strong relationships
and achieving greater client satisfaction. Our approachprioritizes providing efficient and effective claims
processes, while ensuring transparency and fairtreatment in all client interactions.

Gross Written Premium (GWP) for 2023 experienced anincrease of 14%, reaching SR 1.6 billion.
This growth was accompanied by strong credit ratings,
further solidifying our position in the market. Our forward
looking strategy enabled us to capitalize on opportunities
within key business classes, while simultaneously
expanding revenue streams across both domestic andinternational markets. The Reinsurance service result for
the year 2023 showcased a rising to SR 119.7 million
from SR 83.5 million in 2022.
We attribute our growth trajectory to a diverse productportfolio and extensive geographic reach. While theSaudi market remains as an important component ofour business, we have achieved a solid internationalpresence of 66% is spread across Asia (31%), Africa(3%), the Middle East (11%), and Other Territories (21%)
To learn more about the specific breakdown of ourgeographical distribution and a detailed analysis of
our financial performance, please refer to the Financial
Review section of our Annual Report on page 30.

In 2023, we recorded significant growth in our books,
and we strengthened our presence in strategic markets
and partnerships compared to the previous year.
Additionally, Saudi Re led a greater number of treatiesin 2023, with no complaints registered.
Throughout the year, we implemented several initiatives
to enhance customer relations. We engaged with clientsto review portfolio performance and offer more attractive
terms, while continuously monitoring performance andimproving service quality. Saudi Re also continued
to invest in automated service delivery processes
supported by several performance dashboards: forclaims and for partner registration. Additionally, we
conducted regular market visits and held one-to-one
meetings with clients. Furthermore, we organized a
training session on “Reinsurance Simulation” for
30 clients of our Labuan branch.
Service Level Standards (SLS) were applied to ensure
regular claims were approved and processed withinseven working days, and within three working days
for cash calls and special settlements. Developed andimplemented procedure for managing aged and dormant
claims, which led to significant reduction of outstanding
claims and reflected on IBN(E)R provisions.
Saudi Re took further steps to deliver value to clientsby strategically recruiting and deploying qualified
staff throughout the organization. We expanded theunderwriting support unit in Kuala Lumpur to cover bothfacultative and treaty reinsurance contracts. Additionally,
we established a dedicated financial line and casualty
team within the underwriting department, comprisinghighly skilled and experienced professionals, to offer
expanded services to Saudi Re clients.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

10.5 FINANCIAL PERFORMANCEESG REPORT57

CORPORATE GOVERNANCE

10. Sustainability Performance

58

10. Sustainability Performance
In 2023, we consistently met our SLAs and improved ourinternal capabilities in both personnel and technology.
Saudi Re also received multiple awards, further
solidifying trust in the Company’s financial standing.

Net Promoter Score

40%
0

100

Customer satisfaction score

74%

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

0100

In 2023, we conducted a customer satisfaction survey togain deeper insight into the needs and preferences of ourvalued clients. Saudi Re achieved a net promoter scoreof 40% and a customer satisfaction score of 74%, both
surpassing global benchmarks.

Data privacy and security assurance
At Saudi Re, cybersecurity remains a key priority.
We continually assess our position using multiple
dashboards and Key Performance Indicators (KPIs),
both internally and externally. Throughout 2023, weconsistently maintained an “A” security rating forexternal cybersecurity exposure, with a cyber spaceindex rating consistently above 90%.
In efforts to further bolster our security measures, welaunched a cybersecurity awareness campaign andmaintained an active threat management team that
promptly addressed over 1,500 alerts from various threat
intelligence sources within the SLA. Our cyber security
infrastructure was strengthened by introducing the rights
management system (SECLORE) to secure data sharing
internally and externally. We also conducted several
internal and external cybersecurity reviews. As a resultof our efforts, our brand protection score remained
above 95, and no cybersecurity incidents were recorded
in 2023.

Key findings from the survey indicated that customers
favoured Saudi Re expanding its risk appetite andoffering training and workshops to clients. The survey
further highlighted Saudi Re’s reputation as a trusted
partner, with 95% of respondents preferring Saudi Re
as their primary choice for reinsurance coverage.

2023

2022

2021

2020

2019

503

314

293

308

266

Number of claims requested to be settled during the year

2,281

2,855

2,083

2,032

2,271

Number of claims settled during the year

2,281

2,855

2,083

2,032

2,271

100

100

100

100

100

3,024

2,935

3,020

2,811

3,831

98

97

97

98

98

Number of clients

Percentage of settled claims during the year (%)
Number of client new claims during the year
Percentage of claims settled within 7 working days (%)
Value of claims paid (SR)528,907,756 537,845,426 471,215,536 481,191,479 436,701,320

Promoting financial/insurance literacy
To grow insurance accessibility, Saudi Re initiates
insurance literacy programs, sponsors events to raiseawareness about reinsurance, and conducts technicaltraining programs that uplift the sector. Collaboratingwith university Departments of Actuarial Sciences,
we also provide student traineeships, further contributing
to the development of talent in the field.
In 2023, Saudi Re organized a Reinsurance Simulation
Training in Kuala Lumpur, catering to priority clientsand partners in the Asian markets. The three-day event
offered a practical learning experience, utilizing aworld-class, interactive simulation to apply reinsurance
concepts in a simulated business environment.
Twenty-six clients and six Saudi Re employees
participated in the training, which covered various
reinsurance topics, including planning and structuring
reinsurance, reinsurance pricing, and decision-making
processes in reinsurance.

(Nos.)

1,750

30

1,400

24

1,050

18

700

12

350

6

0

0
2019

2020

2021

2022

2023

Participants in financial/insurance literacy initiatives (LHS)
Employees trained on financial/insurance literacy (LHS)
Training hours on financial/insurance literacy (RHS)

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Taking a significant step forward in 2023,
as part of our sustainability journey, we haveassessed and disclosed a number of metrics
with regard to our induced impact as a catalyst
for sustainable practices across a variety
of sectors, our contribution to building thestrength and resilience of communities, andthe sustainability of our systems in the face ofclimate change and related natural catastrophes.

(Nos.)

Managing environmental/climate risk
Saudi Re maintains a moderate exposure toenvironmental risk, primarily in the context of physicalclimate risk within our Global Property Catastrophe
Reinsurance lines. The escalating frequency and severityof climate and weather-related catastrophic events posechallenges, but Saudi Re employs effective mitigants
such as annual policy repricing, catastrophe model
updates, retrocessional protection, continuous businessdiversification, and strong capitalization.

ESG REPORT

Saudi Re places a strong emphasis on Environmental,
Social, and Governance (ESG) considerations in its
business operations. Recognizing the significance ofsustainable insurance practices, Saudi Re integrates
ESG considerations into reinsurance services, providing
risk transfer solutions that contribute positively to thecommunity and the environment.

Promoting financial literacy/
insurance literacy

Reinsurance Simulation
Training in KL Branch

CORPORATE GOVERNANCE

10.7 SUSTAINABLE INSURANCE59

OVERVIEW

10. Sustainability Performance

60

10. Sustainability Performance
As a result of the strategic focus of our lines ofbusiness being on regions with fewer natural
catastrophes, Saudi Re holds a comparatively
lower exposure level to physical climate risk in relation
to global reinsurance peers.

[SASB FN-IN-450a.2](a) Total amount of monetary losses attributable
to insurance payouts from modeled natural
catastrophes

DIRECTORS’ REPORT 2023

SR (47,120,448)
Climate change poses significant material
risks for the insurance/reinsurance sector
as the frequency of extreme weather eventsand magnitude of natural disasters impact
entire communities and countries across theglobe. Part of our responsibility in promoting
sustainability across our operations and thewider insurance/reinsurance sector is theconsideration of climate risks. As the climate
crisis escalates, we continue to assess andmonitor climate risks as part of our risk
management processes. In 2023, we expanded
our disclosure to cover metrics recommended
by the Sustainable Accounting Standards Board(SASB), which is a part of the IFRS Foundation.
These metrics examine the intersection of there/insurance sector and the onset of climaterelated natural catastrophes.

[SASB – FN-IN-450a.1]
Probable Maximum Loss (PML) of insured products fromweather-related natural catastrophes (SR)S A U D I R E I N S U R A N C E C O M PA N Y

SR 166,247,635
2023
2022
2021

110,789,127
145,065,340
166,247,635

2020
2019

110,789,127

2023
2022

(27,333,447)(14,415,720)

2021

3,553,212

2020(7,910,079)

2019[SASB – FN-IN-450a.1](b) Total amount of monetary losses attributable
to insurance payouts from non-modeled natural
catastrophes

SR (2,113,044)
2023
2022

(70,167,216)

2021(40,532,009)

2020(24,065,249)

2019(21,371,629)

Incentivizing sustainable practices
Incorporating sustainability across various areas ofoperation, Saudi Re prioritizes financial and social
inclusion, environmental protection, ethical procurement,
and sustainable investment. However, going a stepfurther, we acknowledge the potential positive impactthat our reinsurance operations can have by aligning
our efforts to support the energy transition anddecarbonization. In line with this, we worked to analyze
and report against SASB Standard metrics in 2023.

61

OVERVIEW

10. Sustainability Performance

Fast-tracking the energy transition was one of
the key aims of the recent COP28 UN Climate
Change conference held in the United ArabEmirates. At the heart of this energy transition
are new and cleaner technologies with broadsocial and environmental impact. Insurers andreinsurers are working to match the increasing
pace of investment in clean energy, renewables,
and low-carbon technologies, and take up
underwriting opportunities that emerge in newmarkets, technologies, and lines of business.
Saudi Re is aware of the potential for global
capital flows to induce a shift toward cleaner,
low-carbon business models, and we areworking to align with this transition.

Saudi Re’s commitment to corporate social responsibility
is incorporated in our core business of reinsurance.
We recognize the potential for social good that theinsurance/reinsurance sector extends in reducing
uncertainty and providing safety and security forinstitutions, industries, and individuals. In 2023, ourportfolio included reinsurance for natural catastropheand life and health policies, which benefit a variety of
sectors and communities.

Value of natural catastrophe
premiums (SR)SR 80,561,605
2023
54,514,642

2022

42,257,480

2021[SASB - FN-IN-410b.1]

2020

Net premiums written related to renewable energy, energy
efficiency, cleaner production, low-carbon technology (SR)BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Protecting communities

38,716,592

2019 26,074,421

SR 2,949,084
59,9642021

46,521

2020

71,168

2019

6,484

Value of life and health policies(in force) reinsured (SR)SR 10,592,636,340
2023
2022
2021
2020
2019

4,720,384,359
18,121,569,216
20,432,573,768
15,538,397,325

CORPORATE GOVERNANCE

2022

ESG REPORT

2023

62

10. Sustainability Performance
Responsible investment
As a Sharia-compliant organization, sustainability plays a pivotal role in our investment decisions. We work to ensure
avoidance of investments that may have adverse societal impacts, while actively promoting equality and inclusion in
all transactions.
2023
IFRS 92022
IFRS 92021
IFRS 42020
IFRS 4

Total invested assets (SR ’000)(differentiated by industry and asset class)
Reinsurance Operations Investments

682,534

645,291

560,257

355,498

Shareholders Investments

956,460

932,094926,746

974,455

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

10.8 SUPPORTING OUR COMMUNITIESSaudi Re actively engages in targeted social andphilanthropic activities, aligning with our commitment
to advancing the socioeconomic development of thecommunities in which we operate. The overarchingdirection for our Corporate Social Responsibility efforts
is outlined in the Company’s Code of Professional
Conduct and Ethics, along with related policies.
Our focus areas encompass addressing basic needs,
enhancing quality of life, and meeting other identified
needs within local communities. Saudi Re is committed
to respecting the traditions and ethical aspects of thecommunities where we operate. Over the years, ourcontributions have yielded a positive impact by fostering
economic growth, creating job opportunities, improving
education, providing healthcare services, supporting
youth development, and facilitating philanthropic
activities.
Our current goal revolves around cultivating an internal
culture of social responsibility: harnessing the strengthsof our workforce to make meaningful and sustainable
contributions that reach beyond the numbers, andpositively impact the community.

In 2023, we uplifted our communities in thefollowing ways:z

A driving simulation campaign, “Be Aware,
Drive with Care,” was conducted with a focus
on safety and well-being.

z

To commemorate Saudi and International Volunteer
Day, an internal campaign was carried out toemphasize the importance of volunteering.

z

Employees actively participated in charitable
programs, donating second-hand computers,
laptops, and other equipment to charities in need.

z

Aid was provided to deserving charities that
address critical social issues, through both direct
and indirect channels.

z

Saudi Re places a special focus on skill development
and employment creation for new graduates.
The Company designs and implements specialized
development programs for young professionals
and leaders, such as internships and summer jobs
for students.

z

The Company offers regular health checkups for
employees, thereby contributing to the overall
health of communities.

z

Saudi re family day.

z

Investing in the ongoing prosperity of communities
through Zakat.

The driving simulation
campaign, “Be Aware,
Drive with Care”

z

Saudi Re hosted a Reinsurance Simulation Training in
Kuala Lumpur, organized for Saudi Re valued clientsand partners in the Asian markets, as part of an effort
to raise awareness about reinsurance and provide
technical training programs that benefit the sector.
As part of our contribution to the Saudi Vision 2030,
Saudi Re participated as a national reinsurer exporterin the second edition of the Saudi Made exhibition,
which aims to promote Saudi Made products andservices at both local and global levels.

z

To make our female employees aware of breast cancer,
an awareness campaign, and free medical checkups
were arranged for all female employees.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Saudi Re sponsors a diverse range of initiatives,
including sports events, insurance events, andworkshops that promote general developmentof the community.

ESG REPORTz63

CORPORATE GOVERNANCE

10. Sustainability Performance

64

10. Sustainability Performance
10.9 OUR PEOPLE OUR PRIDEThe employees of Saudi Re are fundamental to theCompany's success. Their expertise and experiencesignificantly bolster the strength, growth, andadaptability of our business.

TOTAL NUMBER OFEMPLOYEES (FULL TIME) 2023

114
2022 – 99

Employees by employment level

TRAINING AND DEVELOPMENT(Nos.)

SR 700,000

DIRECTORS’ REPORT 2023

90

invested in staff training anddevelopment

72
54

6,357 hours

36of training provided

18
0
2019

2020

Senior Management

2021

2022

Middle Management

2023
Staff

Age analysis of employees
S A U D I R E I N S U R A N C E C O M PA N Y(Nos.)
90
72
54
36
18
0
2019
18-30 years

2020
31-50 years

2021

2022

51+ years

2023

Job rotations
24
In-house workshops
20
Technical training
75
Soft skills training

Professional
qualifications

Information Systems Auditor
Associate in Risk Managementz

Cert CII

z

ACII

z

Project+

Future leaders program
Saudi Re’s accelerated development programaims to empower Saudi graduates to become
the next generation of leaders in the (re)insurance industry.
The one-year program offers an engaging
learning experience led by industry experts.
It focuses on building a solid foundationof technical knowledge and businessskills through a combination of classroom
instruction, practical on-the-job training, andcharacter-building workshops.
The program offers candidates who
demonstrate commitment and high potential
the chance to obtain a professional insurance
qualification and develop a rewarding career ina growing sector with exciting opportunities.

21

Key training areas covered in 2023
z

AML/CTF

z

Corporate governance and code of conductz

Pricing, claims, and underwritingz

Governancez

Cybersecurityz

IFRS 17z

Actuarialz

Reinsurancez

Language developmentzCharacter buildingz

CSR

Future leaders
program graduation

CORPORATE GOVERNANCE

7zz

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Throughout the year, Saudi Re allocated resources
to several training programs covering priority areas
including international Reinsurance Training Programs(RTPs) in Switzerland, the UK and the UAE.

Professional certifications achieved in 2023

ESG REPORT

Ensuring a consistent regimen of training anddevelopment remains a cornerstone of Saudi Re’s
enduring commitment to its workforce. Guided by the
Saudi Re Development Program (SRDP), we identify andaddress skill gaps aligned with our medium to longterm aspirations. Our initiatives in talent and knowledge
development are designed to cultivate essential skills
and enhance individual performance, aligning with theCompany's strategic goals.

65

OVERVIEW

10. Sustainability Performance

66

10. Sustainability Performance
A continuous orientation program is in place to acquaintnew hires with the Company’s operational processes andprotocols. The Saudi Re Competency Framework Project
serves as a valuable resource, allowing employees toacquire essential skills to enhance performance andadvance in their respective careers.
At the executive level, we prioritize succession planning,particularly for pivotal financial management roles. This
comprehensive approach involves specialized training forhigh-performing individuals, preparing them to navigate
the complexities of an ever-changing business landscapeeffectively. Periodic performance assessments andcareer development discussions are integral componentsthat are carried out at all organizational tiers.
DIVERSITY AND INCLUSION37%

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

female employees

100%
return-to-work rate andretention rate for 2023
Saudi Re is committed to fostering a fair and inclusive
workplace culture for every employee. Governed by
our Code of Conduct, Whistleblowing Policy, and astructured Grievance Handling mechanism, we diligently
address any instances of misconduct, harassment, or
discrimination. Our policies, including the Model Work
Organization Regulation, Physical Security Procedure,and Incident Procedure, serve as foundational pillars,
ensuring a conducive workplace for all. 2023 saw noreported cases of discrimination or harassment.
Diversity and inclusion remain central to ourorganizational ethos. In the year under review, the Saudi
Re workforce comprised professionals from diverse
regions and over ten nationalities. We actively focusedon improving gender diversity, resulting in 37% female
representation within the Company, up from 32% in
2022. Female employees accounted for 38% of total
training hours. Additionally, we proudly note a 100%
return-to-work and retention rate, with four employees

availing themselves of parental leave entitlements
during the year. The Saudi Re Ladies’ Outing andother targeted initiatives carried out during the year
were a resounding success contributing to employee
engagement and helping build a conducive workplacefor our diverse team.
EMPLOYEE ENGAGEMENT
In 2023, Saudi Re undertook various initiatives aimed atenhancing employee engagement and morale. Events
like the Family Day, Annual Gathering and the Saudi Re
Ladies’ Outing fostered team spirit and fellowship among
our staff members. Furthermore, our collaboration withwelfare organizations and charitable institutions for
CSR activities served to inspire and motivate our team,
rallying them around meaningful causes.
To promote personal growth, we offered coachingsessions and job rotation opportunities for our
employees. Additionally, we observed all statutory andreligious holidays of significance, including Ramadan,ensuring all necessary provisions for our staff. The
Company also instituted mechanisms to acknowledge
outstanding performances and initiatives. Achievements
were celebrated through email announcements,
fostering a culture of recognition. Through the WalaPlus
Engagement Program, employees and their families
were offered exclusive discounts and offers on various
products and services, complemented by attractive loan
and credit card facilities. In addition, Saudi Re regularly
gauges employee satisfaction and engagement levels
through periodic surveys.

Saudi Re’s
Family Day

Saudi Re prioritizes the health and well-being of its
employees by fostering optimal working conditions
and promoting a balanced work-life dynamic. Medical
insurance coverage is extended to all employees andtheir families. Additionally, our Physical Safety Procedure
reinforces workplace safety protocols.

Yearly medical check up
for Saudi Re’s staff

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Responsibility for upholding health, safety, andsecurity standards rests with the HR Department, Risk
Management Department, and Business Continuity
Teams. These departments collaborate to mitigate
potential risks and maintain exemplary safety standards.
To instill a culture of health consciousness, Saudi Re
conducts regular educational campaigns, including firstaid training and annual flu vaccination campaigns aheadof flu season. Employees benefit from informative emails
featuring health advisories, tips, and guidelines.

ESG REPORTThe working hours of Saudi Re employees are alignedwith safe labor practices and legislation. We emphasize
work-life balance by facilitating remote working
arrangements, offering flexible leave policies, andgranting paid vacation days. Saudi Re also provides
additional support, including financial assistancefor educational expenses. Furthermore, through the
WalaPlus Engagement Program, our staff and theirfamilies enjoy exclusive benefits such as discounts on
gym memberships and nutritious food options.
SERVICE ANALYSIS

Employees by genderYears of service(Nos.)(Nos.)

75

75

60

60

45

45

30

30

15

15

0

0
2019

2020

Total male employees

2021

2022

Total female employees

2023

0-5 years
2022

2023

6-10 years

11-15 years

CORPORATE GOVERNANCE

HEALTH AND WELL-BEING

67

OVERVIEW

10. Sustainability Performance

68

10. Sustainability Performance

RECRUITMENT

37%
Female employees 2023
2019

2020

2021

2022

28%

30%

30%

32%

2023

2022

2021

2020

2019

Total recruitments

35

26

18

10

19

GRI 401-1 New recruitments (Nos.)

35

24

18

6

12

Saudi nationals amongst
new recruits (%)

80

65

78

78

63

GRI 404-3 Employees receiving
regular performance and careerdevelopment reviews (%)

100

100

100

100

100

80%

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Saudization rate 2023
2019

2020

2021

2022

68%

71%

75%

78%

EMPLOYEE DEVELOPMENT

Average training man-days
per employee (days)

Total hours of training
for employees

Investment on employee
training and development(Days)(Hours)(SR ’000)

10

7,500

750

8

6,000

600

6

4,500

450

4

3,000

300

2

1,500

150

0

0
2019

2020

2021

2022

2023

0
2019

2020

2021

2022

2023

2019

2020

2021

2022

EMPLOYEE TURNOVER
2023

2022

2021

2020

2019

GRI 401-1 Employees who left the Company (Nos.)

17

16

5

1

7

Turnover ratio (%)

16

16

5

1

9

Average tenure (years)

5

5

5

4.5

–

2023

69

OVERVIEW

10. Sustainability Performance
10.10 PROTECTING OUR PLANETz

Incorporation of energy-efficient devices, including
motion-activated lighting systems.

z

Responsibly upgrading electronic equipment withhigher energy efficiency to replace those with elevatedenergy consumption.

z

Engaging with non-profit entities specializing inrefurbishing and distributing electronics to charitable
institutions, including educational and social welfareorganizations.

z

z

z

Minimization of paper usage by implementing
innovative processes and consistently utilizing
electronic signatures to reduce paper consumption inapproval workflows.
In 2023, Saudi Re launched the "Recycle for a Good
Cause" campaign, wherein recycled materials were
donated to charitable organizations to be used for
fundraising purposes.
Implementation of water-conserving devices like
faucet aerators to enhance efficiency and reduce water
consumption.

Despite having a minimal environmental impact, Saudi
Re shows its commitment to its duties as a responsible
corporate entity by prioritizing transparency in recording
and reporting key environmental metrics.

GRI 305-1

Direct GHG emissions – Scope 1 (2023)

384 tCO2e
2019

2020

2021

2022

316 tCO2e

284 tCO2e

387 tCO2e389 tCO2e

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Adopting a forward-thinking approach, we evaluatedinnovative strategies to modernize our processes andinfrastructure. In 2023, Saudi Re implemented several
initiatives aimed at improving water and energy efficiency
and refining waste management practices across allareas of the Company:

Implementation of paper recycling practices that
contribute to the reduction of greenhouse gas (GHG)
emissions.

GHG emissions per employee (2023)

4.51 tCO2e
2019

2020

2021

2022

5.09 tCO2e

4.36 tCO2e

5.37 tCO2e

5.11 tCO2e

ESG REPORTOur commitment extends to integrating ESG principles
into our core business activities. We recognize theimportance of managing environmental risks, promoting
sustainable practices, and making responsible
investments in clean and sustainable technologies topositively influence the preservation of our planet.

z

GRI 303

Total water consumption
per employee (2023)

20.28 m3
2019

2020

2021

2022

17.37 m3

11.10 m3

20.0 m3

19.58 m3

CORPORATE GOVERNANCE

Saudi Re’s commitment to minimizing our environmental
footprint remains steadfast, despite our direct impact on
the environment being minimal due to the nature of ourbusiness model.

70

10. Sustainability Performance

Direct energy consumption(operations and vehicles) (2023)

GRI 306-3

Total waste generated (2023)

22.94 GJ

1,650 kg
2019

2020

2021

2022

2,000 kg

900 kg1,170 kg

1,455 kg

Total waste recycled (2023)

2021

2022

27.65 GJ

19.87 GJ

22.86 GJ

22.69 GJ

5,920 kWh

655 kg

DIRECTORS’ REPORT 2023

2020

Total electricity consumption
per employee

GRI 306-4

S A U D I R E I N S U R A N C E C O M PA N Y

2019

2019

2020

2021

2022

600 kg

315 kg632 kg640 kg

2019

2020

2021

2022

4,964 kWh

4,130 kWh

5,239 kWh

5,508 kWhGRI 302-1

Total energy consumption (2023)

2,452.50 GJ

GRI 301

Total paper consumption (2023)

2019

345 kg

2020

2021

2022

1,475.15 GJ 1,298.51 GJ 1,833.45 GJ 1,985.74 GJ

2019

2020

2021

2022

405

270

381

391

GRI 306-4

Total paper recycled (2023)

10 kg
2019

2020

2021

2022

12 kg

4 kg

10 kg

10 kg

* In 2020, Saudi Re prioritized staff safety during the COVID-19
pandemic, promptly implementing work-from-home measures.
The year’s figures highlight the Company’s adaptability and commitment
to ensuring workforce well-being amidst unprecedented challenges.

Saudi Re is committed to implementing initiatives
that address climate change, aiming to contributeto a more sustainable future for future generations.
This commitment aligns with Saudi Vision 2030
and the Global Goals. Our efforts encompass setting
carbon neutrality targets, investing in renewableenergy, promoting a circular economy, engaging
with communities, adopting innovative technologies,
establishing collaborations, and raising employee
awareness.

71

OVERVIEW

10. Sustainability Performance

CORPORATEGOVERNANCE

ESG REPORTBUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

108
Risk Management

CORPORATE GOVERNANCE

72
Governance

72

11. Governance

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Saudi Re’s governance structure provides a framework
which includes the policies, rules, and standards which
guide the Company's activities, and ensure protectionof the rights and interests of its stakeholders and othershareholders. The Company’s governance structure
also regulates the relationships and communication
between the Board, the Executive Management andthe shareholders. Saudi Re’s policies are aligned withregulations issued by SAMA and CMA and in compliancewith national laws and regulations as outlined below.
This section also outlines the responsibilities andcompetencies of the Board, its Committees, and the
Executive Management.
The Company has committed to implementing all
the articles of the corporate governance regulations
issued by the Capital Market Authority during the year
2023, except for paragraph (b) of Article 93, where theCompany has committed to disclose the details of the
remuneration of senior executives in total and has notdisclosed them in detail in accordance with the schedule
specified in Annex (1) of the Corporate GovernanceRegulations, in order to avoid the harm that may becaused by presenting the details to the interest of theCompany and its shareholders, based on paragraph (b)of Article 60 of the rules on the offering of securities andcontinuing obligations.

11.1 COMPLIANCE WITH LAWS AND REGULATIONS
During the year under review, in general, the Company
complied with laws and regulations applicable in theKingdom of Saudi Arabia, including the following:z

Laws and regulations issued by Capital Markets
Authority (CMA).

z

Laws and regulations issued by Insurance Authority,
including the Corporate Governance Regulations.

z

Zakat and Income Tax Regulations issued by
the Zakat and Income Tax Department.

z

Labor Law issued by the Ministry of Human
Resources and Social Development.

z

The Company Law issued by the Ministryof Commerce.

11.2 BOARD OF DIRECTORSThe Company is managed by a Board of Directors
consisting of 11 members who are appointed by theshareholders in the Ordinary General Assembly for aperiod of three years from 11 May 2020 to 10 May 2023.
The election of the members of the Board was approvedby the shareholders in the Ordinary General Assembly on
11 May 2023.

73

OVERVIEW

11. Governance

Mr Hesham Al-Shaikh

Mr Mishari Al-Mishari

Mr Ahmed Sabbagh

Non-Executive Director

Non-Executive Director

Non-Executive DirectorzChairman of Mekyal Financial Techz

Board Member of Probitas
Holding CompanyzFounder and Chairman of theBoard of Watan First InstituteVice-Chairman of the Board,
Member of the Investment
Committee and Nomination andRemuneration Committeez

Board Member of Hana Food
Industries Companyz

PREVIOUS POSITIONSz

Board Member of Ashmore
Saudi Arabia Investmentsz

Board Member of Saudi Civil
Aviation Holding Companyz

Board Member of Al Jazira Bankz

Deputy Managing Director of
Arab National BankQUALIFICATIONSz

Bachelor’s degree in Business
Management, Applied Mathematics,
and Economics from California
University, the USA
EXPERIENCEz

More than 35 years of experience inthe banking and investment sectors
during which he assumed various
leading positions

Member of the Boards of several
companies in the areas of realestate development and training
and education

CURRENT POSITIONSz

PREVIOUS POSITIONSz

Member of the Board of Trusteesof the Arab Insurance Institutez

Former General Manager and Board
Member of the Islamic Insurance
Company in JordanzPresident of International
Federation of TakafulzBoard Member in the General
Council for Islamic Banks andFinancial Institutions

PREVIOUS POSITIONSz

Board Member of Saudi Investment
Bank and Saudi Development Fundz

Managing Director of Al Jazira Bank,
Saudi Arabia

Member of the Technical Committee,
the Nomination and Remuneration
Committee

QUALIFICATIONSQUALIFICATIONSz

Bachelor’s degree in Business
Administration from Oregon
State University
EXPERIENCEzz

Bachelor’s degree in Business
Administration from Beverly Hills
University, California
EXPERIENCEz

More than 45 years of experiencein the insurance and reinsurance
industry in the Middle East
during which he assumed
various leading rolesz

Published six books about
Takaful and Cooperative Insurance
in both English and Arabic
languages

More than 35 years of experiencein the banking and financial sectors
during which he assumed various
leading positions

CORPORATE GOVERNANCE

Chairman of the Board, memberof the Executive Committee,
and Investment Committee

CURRENT POSITIONSz

ESG REPORTCURRENT POSITIONSz

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11.3 MEMBERS OF THE BOARD OF DIRECTORS FROM 2020 TO 2023

74

11. Governance

Mr Jean-Luc Gourgeon
Non-Executive Director

Mr Mohammad
Omair Al-OtaibiEng. Hussam Al-Suwailem
CAIA, FDP, CFE

Independent Director

Independent Director

DIRECTORS’ REPORT 2023

CURRENT POSITIONSz

Chairman of the TechnicalCommittee and member of the
Executive Committeez

Board Member of Probitas Holding
Company, Bermudaz

Board Member of Probitas
Corporate Capital, the UKz

CEO of own consulting company
JLG Consulting Ltd.
PREVIOUS POSITIONSz

European General Manager ofEverest Re Europe in the UKzCEO, and CUO of Paris Re in France
QUALIFICATIONSS A U D I R E I N S U R A N C E C O M PA N Yzz

Master’s degree with Honors in
Mechanic’s Science from Ecole
Centrale de Lyon, Claude Bernard
University in France, INSA Lyon
Political Science degree of Institutd’Etudes Politiques de Paris
EXPERIENCEz

More than 30 years of experiencein the insurance and reinsurance
industry

CURRENT POSITIONSCURRENT POSITIONSz

Chairman of the Risk Committee
and member of the Nomination
and Remuneration Committeez Vice-Chairman of Abdullah Saad
Abo Moati Stationaryz Chairman of Zimeen DigitalMarketingz Member of the Audit Committeeof Al Mojel Trading and Contracting
Co. (Saudi joint stock non-listedcompany)z

Saudi Re Member of the Boardof Directors since May 2020z

Saudi Re Member of the Investment
Committee since November 2019PREVIOUS POSITIONSz

International investments analyst
covering M&A, venture investments
and infrastructure project. SALIC(PIF Subsidiary). (2014 – 2016)z

Credit Portfolio Manager. SAMBA
Financial Group, National
Commercial Bank, Riyad Bank.
(2006 – 2014)PREVIOUS POSITIONSz

Chairman of the National Gas andIndustrialization Companyz Board Member of several joint
stock companies
z Board Member of Al Yamamah
Steel Industries
QUALIFICATIONSQUALIFICATIONSz

Certified Fraud Examiner (CFE)– Association of Certified Fraud
Examiners, 2022, the USAzChartered Alternative Investment
Analyst (CAIA) – CAIA Association,
2020, the USAzChartered Financial Data
Professional (FDP) – FDP
Institute, 2019, the USAz

Master of Applied Finance,
Macquarie University, 2012 –Sydney, AustraliazBachelor of Electrical Engineering,
King Saud University, 2006 –Riyadh, Saudi Arabia.

z

Master’s degree in Business
Administration specializing in
Finance from Western Michigan
University
z Attended the Advanced
Management Program in Harvard
University in the USA
EXPERIENCEz

More than 34 years of experiencein Banking and Marine Shipping
Industry during which he assumed
different leading positions

Dr Peter Hugger

Mr Marc Maupoux

Independent Director

Independent Director

CURRENT POSITIONSz

Member of Risk CommitteezMember of the Audit Committeez

Board Member of MSG Global
Solutions Zurichz

Adviser to the Board at Innoveo
AG Zurich

CURRENT POSITIONSz

Chairman of the Nomination andRemuneration CommitteezMember of the Technical Committee
PREVIOUS POSITIONSz

Led the setup of a start-up
reinsurance company based in
Zurich, Switzerlandz

Head of Property, Non Cat &Engineering World Wide-Axis Re,
and Consultant

PREVIOUS POSITIONSz

Chief Executive Officer of Echo
Reinsurance Ltd., Zurichz

Senior Executive Vice President ofAsia Capital Reinsurance GroupPte Ltd. Singapore

QUALIFICATIONSz

Actuarial Fellowship from Institut deScience Financiere et d’Assurances(ISFA), FrancezMember of the IA (Institut desActuaires) and of the SAV(Schweizer Aktuar Verein)

QUALIFICATIONSzDoctorate degree in Economics fromthe University of Konstanz, Germany
EXPERIENCEz

More than 35 years of experiencein the international insurance andreinsurance market

ESG REPORTEng. Hussam’s experience covers
various interrelated disciplines
such as corporate governance,
asset management, modelling, andstructuring investment transactions.
Those fields bring about theknowledge Hussam technically
employs to achieve optimal strategic
resources allocation withoutcompromising risk management
frameworks and guidelines

EXPERIENCEz

More than 30 years of experience
in international insurance andreinsurance
CORPORATE GOVERNANCE

EXPERIENCEzOVERVIEW

75

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11. Governance

76

11. Governance

Mr Fahad Al-Hesni

Mr Abdullatif Al-Fozan

Mr Turki Al-Sudairy

Executive Director

Non-Executive Director

Non-Executive Director

CURRENT POSITIONSS A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023z

Managing Director andChief Executive Officerz Member of Executive Committeez Board Member of Probitas
Holding Company, Bermuda
z Member of International InsuranceSociety (IIS)
PREVIOUS POSITIONSz

Vice President of Property andCasualty in Tawuniya
QUALIFICATIONSCURRENT POSITIONSz

Member of the Executive Committee
and Investment Committeez Board Mmeber of Al Fozan Holdingz Chief Operating Officer – Al Fozan
Holding Companyz Board Member of Tas’heel Financez Board Member of Alpha Capitalz Founder and board memberof Ascend Solutionsz Board Member United Electronics
Company (Extra)zzMaster’s degree in Insurance
and Risk Management from
City University of Londonz Association degree from theChartered Insurance Institute(CII) in the UK
EXPERIENCEz

More than 25 years of experiencein the insurance and reinsurance
industry

Member of the Boards of several
companies in the areas of real estatedevelopment,nutrition, environmental,
and construction

CURRENT POSITIONSz

Member of the Executive Committee
and Technical CommitteezManaging Partner and CEO Abdul
Latif Jameel Insurance Brokersz

CEO StarCare Insurance Brokers(Owned 100% by Abdul Latif Jameel
Insurance Brokerage)z

Board Member Alpha Capital
Masar Land Development Fundz

Board Member Alpha Capital
Tahaluf Alawaly Fundz

Board Member Alpha Capital
Saudi F&B Growth Fundz

Entrepreneurship Committee
Member – Chamber of Commerceof Riyadh

PREVIOUS POSITIONSz

Corporate Investment Director –Al Fozan Holding Companyz Mergers and Acquisitions, Transaction
Advisory Services – EY
z Business Development Manager –Al Fozan Holdingz Board Member – The National
Company for Glass Industries
z Board Member Retal Residence
QUALIFICATIONSz

Vice Chairman of the General
Committee of Insurance andReinsurance Brokerage Saudi
Arabian Monetary Authority (SAMA)z

Board Member Alpha Capital Saudi
Real Estate Development Fund 2z

Board Member Alpha Murabaha
FundzHealth Insurance PermanentCommittee Member Council of
Cooperate Health InsurancezEndorsement Experts Committee Alrajhi Humanitarian Foundation

Bachelor’s degree in Economics from
University of Toronto
EXPERIENCEz

PREVIOUS POSITIONSz

More than 10 years of experiencein finance and investment

zYouth Businessmen
Committee Member –Chamber of Commerceof Riyadh

Mr Abdullatif Al-Fozan

Mr Turki Al-Sudairy

Chairman of Board of Directors

Vice Chairman of Board of Directors

CURRENT POSITIONSz

Member of the Executive Committee
and Investment Committeez

Board Member of Al Fozan Holdingz

Saudi-French BusinessCouncil Member –Council of Saudi ChamberszChief Operating Officer – Al Fozan
Holding Companyz

Board Member of Tas’heel Financez

Project Coordination
Manager of ANM
Consortium Riyadh
Metro Projectz

Board Member of Alpha CapitalzFounder and board member ofAscend Solutionsz

Board Member United Electronics
Company (Extra)z

Board Member Probitas Holdings(Bermuda)z

Project Coordinator
Bombardier Aerospace
QUALIFICATIONSz

Bachelor’s degree in
Finance from Concordia
University
EXPERIENCEz

More than 10 years’
experience between
Insurance, Entrepreneurshipand Project Management

PREVIOUS POSITIONSz

Corporate Investment Director –Al Fozan Holding Companyz

Mergers and Acquisitions, Transaction
Advisory Services – EYzBusiness Development Manager –Al Fozan Holdingz

Board Member – The National
Company for Glass Industriesz

Board Member Retal Residence
QUALIFICATIONSz

Honors Bachelor of Arts (HBA), Double
Major: Economics, Employment
Relations – University of Toronto

CURRENT POSITIONSz

Member of the Executive Committee
and Technical Committeez Managing Partner and CEO
Abdul Latif Jameel Insurance Brokers
z CEO StarCare Insurance Brokers (Owned 100%by Abdul Latif Jameel Insurance Brokerage)z Board Member Alpha Capital Masar Land
Development Fundz Board Member Alpha Capital Tahaluf Alawaly Fundz Board Member Alpha Capital Saudi F&B Growth Fundz Entrepreneurship Committee Member –Chamber of Commerce of Riyadh
PREVIOUS POSITIONSz

Vice Chairman of the General Committee of
Insurance and Reinsurance Brokerage Saudi
Arabian Monetary Authority (SAMA)z Board Member Alpha Capital Saudi Real Estate
Development Fund 2
z Board Member Alpha Murabaha Fundz Health Insurance Permanent Committee Member
Council of Cooperate Health Insurancez Endorsement Experts Committee – Alrajhi
Humanitarian Foundationz Youth Businessmen Committee Member –Chamber of Commerce of Riyadhz Saudi-French Business Council Member –Council of Saudi Chambers
z Project Coordination Manager of ANM
Consortium Riyadh Metro Projectz Project Coordinator Bombardier Aerospace
QUALIFICATIONSz

Bachelor’s degree in Finance from Concordia
University

EXPERIENCEz

More than 10 years of experiencein finance and investment

EXPERIENCEz

More than 10 years’ experience between Insurance,
Entrepreneurship and Project Management

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11.4 MEMBERS OF THE BOARD OF DIRECTORS FROM 2023 TO 2026

ESG REPORT77

CORPORATE GOVERNANCE

11. Governance78

11. Governance

Mr Ahmed Sabbagh

Eng. Hussam Al-Suwailem
CAIA, FDP, CFE

Non-Executive Director

Independent Director
QUALIFICATIONSCURRENT POSITIONSDIRECTORS’ REPORT 2023zz

CURRENT POSITIONS

Bachelor’s degree in Business
Administration from Beverly Hills
University, Californiaz

EXPERIENCEz

International investments analyst
covering M&A, venture investments
and infrastructure project. SALIC(PIF Subsidiary). (2014 – 2016)z

Credit Portfolio Manager. SAMBA
Financial Group, National
Commercial Bank, Riyad Bank.
(2006 – 2014)

Saudi Re Member of the Investment
Committee
PREVIOUS POSITIONSPREVIOUS POSITIONSz

Member of the Board of Trusteesof the Arab Insurance Institutez

General Manager, one of its
founders, and member of the Boardof Directors of the Islamic Insurance
Company in Jordanzz

S A U D I R E I N S U R A N C E C O M PA N Y

Member of the Technical Committee,
Risk Committee, and Nominations
and Remuneration Committee

Member, Vice-President andPresident of the International
Federation of Takaful and Islamic
Insurance Companies
Member of the Board of Directorsof the General Council of Islamic
Banks and Financial InstitutionszzMore than 45 years of experiencein the insurance and reinsurance
industry in the Middle East during
which he assumed various
leading roles
Published six books about Takaful
and Cooperative Insurance in both
English and Arabic languages

QUALIFICATIONSz

Certified Fraud Examiner (CFE) –Association of Certified Fraud
Examiners, 2022, the USAzChartered Alternative Investment
Analyst (CAIA) – CAIA Association,
2020, the USAzChartered Financial Data
Professional (FDP) – FDP Institute,
2019, the USAz

Master of Applied Finance,
Macquarie University, 2012 –Sydney, AustraliazBachelor of Electronics andCommunications Engineering,
King Saud University, 2006 –Riyadh, Saudi Arabia.

Eng Abdulaziz Al-Shiekh

Mr Abdulrahman Al-Jala

Independent Director

Independent Director

CURRENT POSITIONSz

Member of the Investment
Committee and the Nominations
and Remuneration CommitteezFounding Partner & Managing
Director of Al-Taif Pharmaceutical
Companyz

Vice Chairman of the Board of
Directors of “Ayan Investment
Company”zChairman of the Board of Directorsof “Tal Finance Company”

CURRENT POSITIONSz

Member of the Executive Committee and theNominations and Remuneration Committeez CEO of Dhahran International
Exhibitions Companyz Board Member of Retal Urban Development
Companyz Board Member of Nesaj Realstate developmentz Board member of Building construction
company (BCC)z Board member of Tadbeir Limited Companyz Board member of Tadbeir Environmental

PREVIOUS POSITIONSzManaging Director, Johnson &Johnsonz

General Manager, “Banaja Holding
Company”zChairman of the Board of Directorsof Korn Ferry International
QUALIFICATIONSzz

Master of International finance andmarketing, American University inWashington
Master of Business Administrationin Finance and Marketing at
American University in Washington

PREVIOUS POSITIONSz

Finance, Budgeting and Reporting Section
Head Advanced Petrochemical Companyz Secretary General Assistant
Ashargia Chamberz Board member of NABA ALSAHAz Executive Vice President for Financial Affairs
GASCO, National Gas and Industrialization
CompanyQUALIFICATIONSz

Bachelor’s degree Accounting King
Saud University College of Business
Administration, Saudi Arabia
z Master of Business Administration (MBA)Management University College of Bahrain

EXPERIENCEz

More than 20 years experiencein Finance, Investment and medical
services

ESG REPORTEng. Hussam’s experience covers
various interrelated disciplines
such as corporate governance,
asset management, modelling, andstructuring investment transactions.
Those fields bring about theknowledge Hussam technically
employs to achieve optimal strategic
resources allocation withoutcompromising risk management
frameworks and guidelines

EXPERIENCEz

More than 20 years of experience in energy,
petrochemicals and services sectors inprivate,semi-govermental companies andcivil society institutions.

CORPORATE GOVERNANCE

EXPERIENCEzOVERVIEW

79

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11. Governance80

11. Governance

Mr Abdulaziz Al-Bassam

Mr Mosa bin Akresh

Ms Kubra Shehabi

Independent Director

Independent Director

Independent Director

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

CURRENT POSITIONSCURRENT POSITIONSCURRENT POSITIONSz

Member of the Investment CommitteezMember of the Investment CommitteezzChief Investment Officer at
Al Jomaih Holding CompanyzMember of the Risk Committee
and the Audit CommitteezzChairman of the Board of Directorsof Beach Real Estate Development
Company

Business Development Manager,
Abdulaziz Bin Abdullah Bin Akarsh
Company

Board Member of Procco Financial
Services, Bahrainz

Board Member of Tasheel Finance
Company, Saudi ArabiazPartner of Milestone Accounting
and Consulting, BahrainzMember of the Board of Directorsof Alujain CompanyzMember of the Board of Directorsof ANB Capital Companyz

PREVIOUS POSITIONSz

Advisor to the Minister of Culture
and Information, “Saudi Council of
Economic and Development Affairs”

zMember of the Board of Directorsof “BATC Investment and Logistics
Company”

Member of the Board of Directorsof SAB Invest

PREVIOUS POSITIONSz

Senior Executive Director, Headof Risk Management First Eneray
Bank, BahrainzSenior Vice President. Head of
Credit Risk Management,
Al-Salam Bank, BahrainzVice President. Head of Credit
Department JP Morgan Chase BankQUALIFICATIONSPREVIOUS POSITIONSzFounder and CEO of Oasis CapitalCompany – the USAzMember of the Board of Directorsof Alawwal Capital Companyz

Master of Science (MS) Development
Management The London Schoolof Economics and Political Science
(LSE)

z

PhD in Development Studies andPublic Policy in Emerging Economies
King’s College London

CEO of Abdullah Ibrahim Mohammed
Al Subaie Holding Company(Aims Holding)QUALIFICATIONSz

Master of Business Administration(MBA) from Harvard Business Schoolz

Chartered Financial Analyst,
CFA Institute
EXPERIENCEzz

More than 16 years of experiencein finance, investment

QUALIFICATIONSz

Master of Business Administration(MBA), Investment and Finance,from University of Hull, the UKz

Certified Public Accountant,from (CPA) Illinois, USA

EXPERIENCEz

Mr. Mosa has diverse experiencein business strategy, investment
analysis, economic research, andgovernment advisory roles.

EXPERIENCEz

More than 30 years of experiencein Risk and financeMr Waleed Al-Monie

Mr Fahad Al-Hesni

Independent Director

Executive Director

CURRENT POSITIONSz

Member of the Executive
Committee and the Nominations
and Remuneration CommitteezMember of the Board of Directors,
Middle East paper Company(MEPCO)z

Member Risk Management
Compliance and Responsibility
Environmental and Social
Committee, Middle East Paper
Company (MEPCO)Managing Director andChief Executive Officerz

Associate Insurance Chartered
Insurance Institute (CII)zMember of the Executive
Committee and TechnicalCommitteezMaster’s degree, Insurance andRisk Management – City,
University of Londonz

Board Member Probitas
Holdings (Bermuda)zz

Board Member Probitas
Holdings (UK)

Bachelor’s degree in Business
Administration from King Saud
University – Saudi Arabiazz

Board Member Probitas
1492 Services LimitedHigh Performance Boards Program,
Stakeholders Management for
Boards, Boards and Risks, Teams
Dynamics for the Board – IMD

PREVIOUS POSITIONSz

Head of Planning and Governance,
Zakat, Tax and Customs Authority

PREVIOUS POSITIONSzQUALIFICATIONSz

Master’s degree in Information
Technology Management,
Macquarie University, Australia

QUALIFICATIONSCURRENT POSITIONSzz

Various Positions Manager –Claims Management (P and C)
Vice President – Property andCasualty SBU Tawuniya

EXPERIENCEz

More than 25 years of experiencein the insurance and reinsurance
industry

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE81

ESG REPORT

11. Governance

Vice Chairman of the ReinsuranceCommittee at the Gulf Insurance
Federation

EXPERIENCE:
Over 15 years of experience
encompasses leadership roles ingovernance, project management,
strategic planning.
CORPORATE GOVERNANCEz

82

11. Governance11.5 COMMITTEE MEMBERS FROM OUTSIDE THE BOARD OF DIRECTORSNameCurrent Positions

Previous Positions

Qualifications

Mr Hisham Al-Akilzz

Positions ofbanking andinsurance
supervision in SAMAzz

Chairman ofAudit Committee

Independent external
member of Audit
Committee*

Chief Financial
Officer of
Al-Bilad Bank

Master’s degree in z More than 20 years
Accounting from the of experience in the
University of Illinois
banking and financesectorz Associate of theAmerican Instituteof Certified Public
Accountants (CPA)z

Mr Abdullah
Al Farrajz

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Independent external
member of Audit
Committee

z Vice President for
Chief Financial
Officer of Human
Financial Affairs ofResources
the Saudi Public
Development FundTransport Companyzz

Mr Yanal Soudi
Independent external
member of Audit
CommitteezChief Financial
Officer Saudi
Ground Services
Chief Auditor –National
Commercial Bankz Served as Senior
Member of theBoard of Directors,
Partner in the
Chairman andAssurance Practicemember of theof Ernst & Young
Audit Committee ofseveral companies.

Experience

Completed theStrategic Financial
Leadership Programfrom Stanford
Universityz

Master’s degree in z More than 20 years
Accounting from the of experience
American University
in the field ofin Washington
audit reinsurance
insurance andz Associate of thefinance
American Instituteof Certified Public
Accountants (CPA)z

Associate of Saudi
Organization for
Certified Public
Accountants(SOCPA)z

Bachelor ofArts in Business
Administration Oklahoma State
University, the USAz

Certified Public
Accountant (CPA)– the USAz

30+ years ofexperience inaudit services,risk management
and corporate
governance –mainly, in Saudi
Arabia83

Current Positions

Previous Positions

Qualifications

Mr Tariq Zainozz

GAZT – General
Authority of Zakat
and Taxzz

LTP Audit Assistant
Director, CMA –Capital Market
Authorityz

Senior Financial
Officer at Appeal
Committee
Studies in General
Secretariat ofCommittees for
the Resolution of
SecuritieszManager in Tax and
Zakat Compliance,
Ernst & Young

Independent external
member of Audit
Committee

Dr Volker Lauff

Certified Public
Accountant in his
firm “Zaino CPA”

Experience

Bachelor’s degree z More than 17 years
in Accountingof experience inSciences fromAccounting, Audit,
King Saud University Capital Market
Violations, Zakat
z Fellowship certificate
and Tax
from the Saudi
Organization for
Certified Public
Accountants(SOCPA), CME1
and CME2z

Executive
Chairman of PRS
Capital Solutionsz

Sales Leader
Analytics at
Aon Global Risk
Consultingz

PhD in Mathematics z Over 20 years offrom Auto Von
experience in the
Guericke University,
field of insurance
Germany
and reinsurancezChairman of
the TechnicalCommittee
and member ofthe Executive
CommitteezEuropean General
Manager of Everest
Re Europe in the UKzzCEO, and CUO of
Paris Re in Francez More than 30 years
Master’s degreewith Honors inof experience in
Mechanic’s Science
the insurance andfrom Ecole Centrale
reinsurance industry
de Lyon, Claude
Bernard University
in France, INSA Lyonz

Political Science
degree of Institutd’Etudes Politiquesde Paris

Mr Jean-Luc
Gourgeon
Independent external
member of TechnicalCommittee*z

Board Member of
Probitas Holding
Company, Bermudaz

Board Member of
Probitas Corporate
Capital, the UKz

CEO of own
consulting company
JLG Consulting Ltd.

CORPORATE GOVERNANCE

ESG REPORT

Independent external
member of Risk Committee

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCEName

OVERVIEW

11. Governance84

11. Governance

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

11.6 EXECUTIVE MANAGEMENT

Mr Fahad Al-Hesni

Mr Nilmin Pieries

Mr Ahmed Al-Jabr

Managing Director –Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Mr Fahad Al-Hesni joined Saudi
Re as an Executive Board Member
in 2011, and he serves as theManaging Director and the Chief
Executive Officer, in addition tohis membership of the Executive
Committee of the Company.
Currently he is a Board Memberof Probitas Holding Company(Bermuda). He is also a member of
the International Insurance Society(IIS). He has more than 26 yearsof experience in the insurance
and reinsurance industry during
which he assumed various leading
positions, last of which was the
position of Vice President of
Property & Casualty in Tawuniya.
Mr Al-Hesni has a Master’s degree
in Insurance and Risk Managementfrom City University of London andan Association degree from theChartered Insurance Institute (CII)in the UK.

Mr Pieries joined the Company
in 2010 bringing more than
25 years of experience in thefields of accounting, finance,
investment, and risk management.
He also has worked in various
companies in Asia, the Gulf region
and the UK, through which he has
gained considerable experiencein the insurance, and reinsurance
sectors. Moreover, Mr Pieries
was awarded a Master’s degreein Business Administration by
Nottingham University in the United
Kingdom and is an Associate of theChartered Institute of Management
Accountants, (CIMA), the UK.

Mr Al-Jabr joined the Company
in 2011 and has experience in theinsurance sector of more than
20 years. Mr Al-Jabr assumed
different roles within the insurance
industry covering areas of humanresources, strategy, businessdevelopment and claims. Mr Al-Jabr
holds a Master’s degree in Business
Administration from Bradford
University in the UK.

Mr Ahmed Al-Qarishi

Ms Dana Barhoumeh

Chief Investment Officer

Chief Underwriting Officer

Chief Actuary

Mr Fadi joined Saudi Re in 2019and previously held several positionsin the field of investment andportfolio management for more than
21 years; his recent position was as
the General Manager for Investment
in Alistithmar Capital. Mr Fadi is acertified financial advisor from the
Financial Services Authority in theUK, a certified portfolio manager
and a certified wealth manager
from the American Academy ofFinancial Managers. Mr Fadi holds
a Bachelor’s degree from the
University of Bahrain in Business
Management.

Appointed in 2022, Mr Ahmed
joined the Company in 2014 andhas experience that exceeds
15 years, during which he occupied
positions in Banking and Insurance
supervision within the Saudi Central
Bank. Mr Al-Qarishi has a Master’s
degree in Actuarial Sciencefrom Ball State. University in theUSA; in addition, he is a Fellowof the Society of Actuaries in the
USA (FSA).

Ms Dana joined Saudi Re in 2023,
bringing with her over 16 years ofextensive experience in the field of
Actuarial Science. In her previous
roles, she held various positions,culminating in her most recent roleas Senior Manager and Consulting
Actuary, leading the Actuarial
Services Division at United forActuarial Services. Ms Danaholds a Bachelor of Science
degree in Actuarial Mathematics
from the University of Michigan.
She is also recognized as a Fellowof the Society of Actuaries (FSA)
in the USA.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Mr Fadi Al Qutub

ESG REPORT85

CORPORATE GOVERNANCE

11. Governance86

11. Governance11.7 COMPANIES WITHIN AND OUTSIDE THE KINGDOM IN WHICH A BOARD MEMBER IS A MANAGER
OR A MEMBER OF THEIR CURRENT OR PREVIOUS BOARD

Members of the Board of Directors from 2020 to 2023
NON-EXECUTIVE DIRECTOR

Name

Term

Other joint stock companies of which the Directors are Board Members

Mr Hesham
Al-Shaikh

Period from
11 May 2020 to
10 May 2023

Watan First Institute

Limited company

Mekyal Financial Tech

Limited company

Probitas Holdings (Bermuda) Ltd.

Closed joint stock company

Chairman of theBoard of Directors

Mr Mishari
Al-Mishari

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Vice-Chairman

Mr Ahmed
Sabbagh

Mr Jean-Luc
Gourgeon

Period from
11 May 2020 to
10 May 2023

Period from
11 May 2020 to
10 May 2023

Period from
11 May 2020 to
10 May 2023

Type

Ashmore Investment KSA (Previous)

Closed joint stock company

Bank Al-Jazira (Previous)

Joint stock company

Arab National Bank (Previous)

Joint stock company

Doroob for Education and Training Company

Governmental company

Hana Water Company

Private company

Saudi Investment Bank (Previous)

Joint stock company

Saudi Fund for Development (Previous)

Governmental

Aloula Real Estate Development Company (Previous)

Closed joint stock company

Bank Al-Jazira (Previous)

Joint stock company

Islamic Insurance Company (Jordan) (Previous)

Limited joint stock company

Tunisia Takaful Insurance Company – Tunisia (Previous)

Joint stock company

Al Aman Takaful Insurance – Beirut (Previous)

Closed joint stock company

The International Federation of Takaful andIslamic Insurance Companies – Sudan (Previous)

FederationJLG Consulting Ltd.

Limited company

ARAPL Ile de France

Closed joint stock company

Probitas Holdings (Bermuda) Ltd.

Closed joint stock company

Probitas Corporate Capital Limited

Closed joint stock company

Probitas Holdings UK Ltd.

Closed joint stock company

Probitas 1492 Services Ltd.

Closed joint stock company

Probitas Managing Agency Services Ltd.

Closed joint stock company

Paris Re Holdings Ltd. – France (Previous)

Closed joint stock company

GTT Company – France (Previous)

Closed joint stock company

Cunningham Lindsey Group – the USA (Previous)

Closed joint stock company

Paris Diderot University – France (Previous)

Limited company

French Reinsurance Association – France (Previous)

Joint stock company

French Reinsurance Association – France (Previous)

Governmental

87

OVERVIEW

11. Governance
INDEPENDENT DIRECTOR

Name

Term

Other joint stock companies of which the Directors are Board Members

Mr Marc
Maupoux

Period from
11 May 2020 to
10 May 2023

EXIN Re AG, Zurich, Switzerland (Previous)

Mr Mohammad
Omair Al-Otaibi

Period from
11 May 2020 to
10 May 2023

Zimeen Digital Marketing

Limited liability company

Al Mojel Trading and Contraction Co. (Audit Committee Member)

Closed joint stock company

Chairmanof Boardof Directors

Mr Turki
Al-Sudairy

Period from
02 Jan 2023 to
10 May 2023

Period from
02 Jan 2023 to
10 May 2023

Abdullah Saad Abo Moati Company

Joint stock company

Al Yamamah Steel Company (Previous)

Joint stock company

National Gas and Industrialization Company (GASCO) (Previous)

Joint stock company

United Arab Company for Float Glass (Previous)

Closed joint stock company

Riyad Bank (Previous

Joint stock company

Middle East Shipment Company – Emirate (Previous)

Limited company

NSCSA AMERICA – USA (Previous)

Limited company

Bahri Company (Previous)

Joint stock company

National Chemical Carriers Ltd. Co (Previous)

Limited company

West of England Insurance Company – Luxembourg (Previous)

Limited company

International Shipowners Re (Previous)

Limited company

Petradec Company for Gas Trade and Transportation – (Previous)

Limited company

ISRE Insurance Company – Luxembourg (Previous)

Limited company

Al Fozan Holding Company

Closed joint stock company

Ascend Healthcare Solutions

Limited Company

United Homeware Company (Nice)

Limited company

The National Company for Glass Industries – (Previous)

Joint Stock Company

Tas’heel Finance

Closed joint stock company

Alpha Capital

Closed joint stock company

United Electronics Company (Extra)

Joint stock company

Abdul Latif Jameel Insurance Brokers – Saudi Arabia

Closed joint stock company

Alpha Capital Saudi F&B Growth Fund – Saudi Arabia (Previous)

Fund

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Axis Re Zurich, Switzerland (Previous)

ESG REPORTMr Abdullatif
Al-Fozan

Type

Eng. Hussam
Al-Suwailem

Period from
11 May 2020 to
10 May 2023

Dr Peter
HuggerPeriod from
11 May 2020 to
10 May 2023

StarCare Insurance Brokers – Saudi Arabia (Previous)

Closed joint stock company

Alpha Murabaha Fund – Saudi Arabia (Previous)

Fund

Msg global solutions AG – Switzerland

Private company

Echo Reinsurance Ltd. – Switzerland (Previous)

Closed joint stock company

Asia Capital Reinsurance Group Pte Ltd. – Singapore (Previous)

Private company

Msg Systems AG – Singapore (Previous)

Private company

Gerling Global Re – Singapore (Previous)

Closed joint stock company

CORPORATE GOVERNANCE

Alpha Capital Saudi Real Estate Development Fund 2 – Saudi Arabia Fund88

11. Governance
EXECUTIVE DIRECTOR

Name

Term

Other joint stock companies of which the Directors are Board Members

Mr Fahad
Al-Hesni

Probitas Holdings (Bermuda) Ltd.
Period from
11 May 2020 toProbitas Holdings UK Ltd.
10 May 2023
Probitas 1492 Services Ltd.

Type

Closed joint stock company
Closed joint stock company
Closed joint stock company

Members of the Board of Directors from 2023 to 2026
NON-EXECUTIVE DIRECTOR

Term

Name

Other joint stock companies of which the Directors are Board Members

Ajdan Real-estate Development Company
Mr Abdullatif Period from
11 May 2023 to Oula Real Estate Development Company
Al-Fozan

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Chairmanof Boardof Directors

Mr Turki
Al-Sudairy

Mr Ahmed
Sabbagh

10 May 2026

Type

Closed joint stock company
Closed joint stock company

Athman Medical

Closed joint stock company

The National Company for Glass Industries – (Previous)

Joint Stock Company

United Company for Financial Services

Closed joint stock company

Saudi Industrial Machinery Co.

Closed joint stock company

Roaya Nutrition Company Limited

Limited company

United Electronics Company (Extra)

Joint stock company

Samaya investment Company

Holding company

Rafa Gulf Contracting Company

Limited company

Tadbeer Environmental Services Company

Limited company

Probitas Holdings (Bermuda) Ltd.

Closed joint stock company

Abdul Latif Jameel Insurance Brokers – Saudi Arabia
Period from
11 May 2023 to Alpha Capital Saudi F&B Growth Fund –10 May 2026
Saudi Arabia (Previous)

Closed joint stock company
Fund

Alpha Capital Saudi Real Estate Development
Fund 2 – Saudi Arabia

Fund

StarCare Insurance Brokers – Saudi Arabia (Previous)

Closed joint stock company

Alpha Murabaha Fund – Saudi Arabia (Previous)

Fund

Islamic Insurance Company – Jordan (Previous)
Period from
11 May 2023 to Tunisia Takaful Insurance Company – Tunisia (Previous)
10 May 2026
Al Aman Takaful Insurance – Beirut (Previous)
The International Federation of Takaful and Islamic
Insurance Companies – Sudan (Previous)

Limited joint stock company
Joint stock company
Joint stock company
Federation

89

OVERVIEW

11. Governance
INDEPENDENT DIRECTOR

Building Construction Company (BCC)
Mr Abdulrahman Period from
11 May 2023 to Tadbeir Limited Company
Al-Jala10 May 2026

Eng Abdulaziz
Al-Shiekh

Mr Abdulaziz
Al-Bassam

Retal Development Company

Type

Limited company
Limited company
Joint stock company

NABA ALSAHA – Saudi Arabia (Previous)

Closed joint stock company

Tadbeir Environmental

Limited company

Nesai Residential Real – Saudi Arabia

Limited liability

Johnson & Johnson – United State (Previous)
Period from
11 May 2023 to Banaja Holding Company – Saudi Arabia (Previous)
10 May 2026
Al-Taif Pharmaceutical Company – Saudi Arabia

Joint stock company
Limited company
Closed joint stock company

Ayan Investment Company – Saudi Arabia

Joint stock company

Tal Debt Crowdfunding Company – Saudi Arabia

Limited company

Period from
Al Jomaih Holding Company – Saudi Arabia
11 May 2023 to Beach Real Estate Development Company
10 May 2026
Alujain Company – Saudi Arabia

Limited company
Limited company
Joint stock company

ANB Capital Company – Saudi Arabia

Closed joint stock company

Alawwal Capital Company – Saudi Arabia

Closed joint stock company

Al Jomalih Energy and Water Company – Saudi Arabia

Limited company

Business Expertes Company

Limited company

Urban Hill – (Previous)

Limited company

Oasis Capital Company – USA (Previous)

Limited company

Mr Mosabin Akresh

Period from
Abdulaziz Bin Abdullah Bin Akarsh Company – Saudi Arabia Closed joint Stock company
11 May 2023 to BATC Investment and Logistics Company –Joint stock company
10 May 2026
Saudi Arabia (Previous)

Ms Kubra
Shehabi

Period from
Procco Financial Services – Bahrain
11 May 2023 to United Company for Financial Services – Saudi Arabia
10 May 2026
Milestone Accounting and Consulting – Bahrain

Closed joint stock company

Mr Waleed
Al-Monie

King Abdullah Financial District (KAFD) – Saudi Arabia
Period from
11 May 2023 to Middle East Paper Company (MEPCO) (Previous)
10 May 2026

Joint stock company

Eng. Hussam
Al-Suwailem

Period from
11 May 2023 to
10 May 2026

Limited Company
Limited Company
Governmental

EXECUTIVE DIRECTOR

Name

Term

Other joint stock companies of which the Directors are Board Members

Mr Fahad
Al-Hesni

Probitas Holdings (UK)
Period from
11 May 2023 toProbitas 1492 Services
10 May 2026
Probitas Holdings (Bermuda)

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Other joint stock companies of which the Directors are Board Members

ESG REPORT

Name

Type

Closed joint stock company
Closed joint stock company
Closed joint stock company

CORPORATE GOVERNANCE

Term

90

11. Governanceshall not have the power to act in lieu of the full Boardin any matter in respect of which the delegation of
powers is prohibited under applicable law, or that
requires the approval of the Company’s shareholders,or is specifically assigned to another committeeof the Board.

11.8 PROCEDURES TO INFORM BOARD MEMBERS OFSHAREHOLDERS' SUGGESTIONS AND REMARKS
Saudi Re’s expert and professional Investor Relations
function collates and analyzes suggestions and comments
received from shareholders through communication
channels or General Assembly Meetings and submits
findings to the Board of Directors. For more informationon the Company’s Investor Relations function andtransparent engagement with stakeholders, please referto the corporate governance section of the ESG report,
on page 52.

z

Reviewing the details of the Company’s businessstrategy and making recommendations to the Board
for approval.

z

Reviewing the details of the Company’s work plans
and budget and regularly monitoring the progressof the work plan and budget.

11.9 POWERS AND RESPONSIBILITIESOF BOARD COMMITTEESz

Overseeing the activities of the Chief Executive Officerof the Company.

z

Supporting the Chief Executive Officer on an ad hoc
basis to address specific needs or requirements.
Reviewing alliances, mergers, acquisitions and otherstrategic agreements and making recommendations
to the Board for approval.

z

Taking any other action or assuming any other powers
and responsibilities that may from time to time be
assigned or delegated to it by the Board.

z

Reviewing alliance, mergers, acquisition and otherstrategic agreements and making recommendations
to the Board for approval.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Executive Committee
The General Assembly shall approve, based on proposals
by the Board of Directors the rules for the selectionof Executive Committee members, the term of theirmembership and the method of the Committee work.
The duties and responsibilities of the Executive Committee
are as follows:z

Exercising the full powers and prerogatives of the Board
between Board meetings and while the Board is notin session in cases where a quick action or resolution
is required or warranted, except that the Committee

Board Member Name

Designation

1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
Total
meeting meeting meeting meeting meeting meeting meeting meeting meeting meeting meeting meeting meeting meeting meetings
held on held on held on held on held on held on held on held on held on held on held on held on held on held on attended
in 2023
16.03.23 09.05.23 21.05.23 05.06.23 03.07.23 18.07.23 15.10.23 30.10.23 06.11.23 16.11.23 22.11.23 30.11.23 10.12.23 20.12.23

Mr Heshamal-Shaikh**

Chairman

Mr. Fahad
Al-Hesni***

MD/CEOMr Abdullatif
Al-Fozan*

Chairman

Mr Turki
al-Sudairy

Member

2







5





















9





















14

Mr Abdulrahman
al-Jalal*Member





















9

Mr Waleed
al-Monie*

Member





















10

Mr Jean-Luc
Gourgeon**(*)

EXT.
Member

















10





* Membership Started 22 June 2023** Membership has ended 10 May 2023*** Membership has ended 10 July 2023(*) Membership started 22 June 2023









The duties and responsibilities of the Audit Committee
should include the following:z

To supervise the Company’s Internal Audit Department
to ensure its effectiveness in executing its activities
and duties specified by the Board of Directors.

z

To review the internal audit procedures and preparea written report on such review including its
recommendations.

z

Reviewing audit plan of Internal Auditors and External
Auditors and make any comments thereon.

z

Assessing the efficiency, effectiveness and objectivityof work performed by External Auditors, Internal
Audit Department or Internal Auditor and ComplianceControl Department or Compliance Officer.

z

Coordinating between Internal and External Auditors.

z

Reviewing the Internal and External Auditors’
assessment of internal control procedures.

Reviewing internal financial and non-financial controls
and risk management system.

z

Appointment and dismissal of Head of Internal
Audit Department or Internal Auditor and Head ofCompliance Control Department or Compliance Officer
after obtaining SAMA No Objection, their performance
evaluation and remunerations for all respective staff.

zEnsuring independence of Internal Audit Department
or Internal Auditor and Compliance Control
Department or Compliance Officer in performing tasks,and ensuring there is no restriction on their scope ofwork or any impediments that might negatively affecttheir work.

z

Reviewing reports of Compliance Control Department
or Compliance Officer and Internal Audit Reports
and pursue the implementation of the recommended
corrective measures and make necessary
recommendations to Board.

z

Reviewing the comments of SAMA and other relevantsupervisory and control entities related to any
regulatory violation or corrective actions requested andmaking recommendations thereon for the Board.

z

Following up the reports issued by SAMA, and otherrelevant supervisory and control entities and making
recommendations thereon to the Board.

z

Reviewing related parties’ transactions.

z

Reviewing, approving and monitoring theimplementation of Compliance Plan.

z

To supervise the activities of the External Auditors
and approve any activity beyond the scope of theaudit work assigned to them during the performanceof their duties.

Monitoring the activities of Compliance Department
and ensuring that Company’s compliance with SAMA,
CMA and other laws and regulations.

z

Reviewing the actuary reports and making
recommendations thereon for the Board.

z

Ensuring the Company’s compliance with the actuary’s
proposals and recommendations where these aremandatory and required by regulations or SAMA
instructions.

z

Determining the monthly salary, bonus and other
remuneration of the internal audit, or ComplianceControl Department or the Internal Auditor orCompliance Officer in accordance with the Company’s
internal by-laws approved by the Board.

z

Ensuring the Company has written code of conducts
approved by its BOD to ensure that the Company’s
activities are conducted in a fair and ethical manner.

z

Following up on important lawsuits filed by or against
Company and submitting period reports thereon to
Boards.

zz

To review the External Auditor’s comments on
the financial statements and follow up on theactions taken.

zEnsuring independence of External Auditors from
Company, Board Members and Senior Management.

zDiscussing the annual and interim quarterly financial
statements with External Auditors and Company’s
Senior Management before issuance thereof.

z

To review the interim and annual financial statements
prior to presentation to the Board of Directors;
and to give opinion and recommendations withrespect thereto.

z

To review the accounting policies in force and advise
the Board of Directors of any recommendation thereto.

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCEThe Board of Directors implement the rules for theselection of Audit Committee members which is approvedby the General Assembly, also the scope of theirmembership and the method of the Committee work.

z

ESG REPORT

Audit Committee

91

CORPORATE GOVERNANCE

11. Governance92

11. Governancez

Ensuring optimal use and control of information
technology necessary to generate reliable informationand data is in place.

z

Authority to investigate any activity within its Termsof Reference and have access to any information it
may need.

DIRECTORS’ REPORT 2023zz

The duties and responsibilities of the Committee
are as follows:

The report of the audit shall include details of its
performance of its competencies and duties stated in
the Companies Law and its Implementing Regulations,provided that the report contains its recommendations
and opinion on the adequacy of the internal andfinancial control systems and risk management
systems in the Company. The Board shall makeavailable sufficient copies of the Audit Committee’sreport at the Company’s head office, and publish
them on the Company’s and the Exchange’s websites
when publishing the invitation to convene the General
Assembly, to enable shareholders to get a copy
thereof. Summary of the report shall be read at theGeneral Assembly.
The Audit Committee shall develop arrangements thatenable the Company’s employees to confidentiallyprovide their remarks in respect of any inaccuracies
in the financial or other reports. The Audit Committee
shall ensure that such arrangements have been
put into action through an adequate independent
investigation in respect of the error or inaccuracy,
and shall adopt appropriate follow-up procedures.

BOD Member NameS A U D I R E I N S U R A N C E C O M PA N Y

The General Assembly shall approve, based on proposalby the Board of Directors, the rules for the selectionof Investment Committee members, the term of theirmembership, and the method of the Committee’s work.

z

Ensuring that the Investment Policy Statement (IPS) is
prepared in line with the overall business strategy of
the Company as well as the regulatory guidelines.

z

Obtaining Board approval for the IPS.

z

Reviewing and revising the investment strategy
on a quarterly basis taking changes in business
requirements and market conditions into
consideration.

z

Appointment and evaluating the performanceof Investment and Fund Managers.

z

Recommending to the Board, the appointment
and removal of Investment Advisor.

zDelegating when required execution of theirdecisions to a selected subcommittee and/or
to the management team.

z

Deciding the execution strategy for each segment of
the investment portfolios, that is, whether the exposurein each segment will be executed via a passive or
active management style, will be managed in-houseor by external managers via segregated mandates orinvestment funds.

1st
meeting
held on2nd
meeting
held on3rd
meeting
held on4th
meeting
held on04.01.2023

13.03.2023

07.05.2023

01.06.2023

5thmeeting
held on6th
meeting
held on13.06.2023 09.08.2023

7thmeeting
held on02.11.2023

8th
Total
meeting
meetings
held on attended in
02.12.2023

2023

Mr Hisham Al-Akil**

Ext Chairman(Previously)







3

Dr Peter Hugger**

Member

3

Mr Abdullah Al Farraj

EXT. Chairman







Mrs Kubra Shehabi*











8

Member











5

Mr Yanal Soudi*

EXT. Member











5

Mr Tarik Zaino

EXT. Member











8

*Membership started 11 May 2023**Membership has ended 10 May 2023







93

z

Taking any other action or assuming any other powers
and responsibilities that may from time to time be
assigned or delegated to it by the Board.

z

Reporting to the Board, the performance of theCompany’s investments in terms of risk, returns, andallocations and on any major pertinent developments.

The duties and responsibilities of the Committee
are as follows:

Mr Abdullatif Al-Fozan became an external memberof the Investment Committee on November 2022 byapproval from the Saudi Central Bank “SAMA”.

z

Re-evaluating the Company’s risk appetite, tolerance,and exposure to risk on a regular basis.

z

Re-evaluating the Company’s risk management policy
consistent with the Company’s commitments toshareholders and regulatory requirements.

zSupervising the implementation of necessary
measures to mitigate identified risks.

z

Understanding and reviewing the risks associatedwith the Company’s activities and maintaining an
acceptable risk profile for the Company.

Investment Committee
Board Member Name

Designation

1st meeting
held on2nd meeting 3rd meeting
held onheld on4th meeting
held on5th meeting
held onTotal meetings
attended in

14.03.2023

08.05.2023

29.10.2023

06.12.2023

2023

07.08.2023

Mr Abdulaziz Al Bassam*

Chairman







3

Eng Abdulaziz Al Shaikh*Member

3

Eng Hussam Al Suwailem

Member











4

Mr Abdullatif Al-Fozan

Member











3

Mr Mousa Binakresh *Member

3

Mr Hesham Al-Shaikh **Chairman (Previously)





2

Mr Mishari Al Mishari **Member2*Membership started 11 May 2023**Membership has ended 10 May 2023

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Reviewing the decisions made by the management
team and investment advisor(s).

ESG REPORTzOVERVIEW

11. Governance

CORPORATE GOVERNANCE

The General Assembly shall approve, based on proposal by the Board of Directors, the rules for the selection of Risk
Management Committee members, the term of their membership and the method of the Committee’s work.

94

11. Governancez

Overseeing the risk management system andassessing its effectiveness, and ensuring
infrastructure and resources are in place.

z

Evaluation of the adequacy of the risk management
function.

z

Evaluating risks under certain stress scenarios(e.g. rating downgrade, capital issues, regulatory
breaches/fines etc).

z

Reviewing, and evaluating business continuity planframework and policy.

z

Reviewing and obtaining Board approval for thefollowing cybersecurity governance documentation:
I.

z

Reviewing catastrophic exposure limit.

z

Review threshold limits of business portfolios.

z

Reviewing capital adequacy and solvencyof the Company.

z

Reviewing ALM processes and activities on aregular basis.

z

Review on regular basis regulatory, complianceand AML risks.

z

Reviewing periodic reports from Risk Management
Department, such as quarterly risk management
reports.

z

Taking any other action or assuming any other powers
and responsibilities that may from time to time be
assigned or delegated to it by the Board.

Cybersecurity Committee Charter

II. Cybersecurity Governance Framework
III. Cybersecurity Strategy
IV. Cybersecurity policy

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023z

Ensuring the cybersecurity risks of the Company
is well managed.

The Committee shall have the authority to obtain advice
and assistance from internal or external legal, actuarial,
accounting or other advisors and to approve the feesand other retention terms related to any such externalcounsel, consultants and advisors.

Risk Committee
Board Member Name

Designation

1st meeting 2nd meeting
held onheld on03.04.2023

3rd meeting
held on4th meeting
held on5thmeeting
held onTotal meetings
attended in

29.05.2023

16.08.2023

22.10.2023

05.12.2023

2023









4

Ms Kubra Shehabi*

Chairman

Mr Mohamad Al-Otaibi**

Chairman (Previously)1

Dr Volker Lauff**

Member

1

Mr Ahmad Sabbagh*

Member

Dr Peter Hugger

EXT. Member*Membership started 11 May 2023**Membership has ended 11 May 2023











4









5

95

Technical Committee

Nomination and Remuneration Committee

The General Assembly shall approve, based on proposalby the Board of Directors, the rules for the selectionof Technical Committee members, the term of theirmembership and the method of the Committee work.

The General Assembly shall approve, based on proposalby the Board of Directors, the rules for the selection ofNomination and Remuneration Committee members,
the term of their membership and the method of theCommittee’s work.

The Committee shall have the authority to obtain advice
and assistance from internal or external legal, accounting orother advisors and to approve the fees and other retention
terms related to any such external counsel, consultants andadvisors.

Recommending to the Board appointments to membershipof the Board and its committees in accordance with theapproved policies and standards. The Committee shallensure that no person who has been previously convicted ofany offense affecting honor or honesty is nominated for suchmembership.
z

Preparing a description of the required capabilities andqualifications for the membership of the Board and its
committees, including the time that a Board Member
should set aside for carrying out the duties of the Boardand its committees.
z Setting procedures to be followed if the position of amember of the Board or a Senior Executive becomesvacant.
z Reviewing at least annually the requirement andavailability of suitable skills within the membership ofthe Board and recommending remedies that are in the
Company’s best interest.
z Recommending succession planning policies to the Boardand committees.
z Reviewing the structure of the Board and its committees
and determining their points of weakness andrecommending changes where needed.
Also providing job descriptions for the Executive,
Non-Executive and Independent Directors and the Senior
Executive Management.

9th
1st
2nd
3rd
4th
5th
6th
7th
8th
meeting
meeting
meeting
meeting
meeting
meeting
meeting
meeting
meeting
held onheld onheld onheld onheld onheld onheld onheld onheld on07.03.2023 16.03.2023 09.05.2023 01.06.2023 15.06.2023 07.08.2023 24.10.2023 08.11.2023 29.11.2023

Total
meetings
attendedin 2023

BOD Member Name

Designation

Mr Jean-Luc Gourgeon

Chairman

1

1

1

1

1

1

1

1

1

9

Mr Turki Al Sudairy

Member

1

1

1

1

1

1

1

1

1

9

Mr Fahad Al-Hesni*

Member

1

1

1

1

1

1

6

Mr Ahmad Sabbagh**

Member

1

1

1

3

Mr Marc Maupoux**

Member1

1

1

3*Membership started 14 May 2023**Membership has ended 10 May 2023

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Reviewing underwriting policies and guidelines.
Reviewing pricing methodologies and tools used
to price/rate risks.
z Reviewing the underwriting performance quarterly.
z Reviewing the claims activities quarterly.
z Reviewing the business plan assumptions annually andrecommending the underwriting business plans
to the Board.
z Recommending for Board approval new lines of business.
z Reviewing and recommending for Board approval theterritories in which Company should or should not write
business from.
z Defining the Company’s retrocession structure andrecommending for Board approval including theRetro Cost.
z Ensuring that the securities of the Retro Panel arewithin the regulatory requirements and any changes areevaluated and necessary actions taken.
z Re-evaluating the Company’s retrocession structure
on a regular basis.
z Taking any other action or assuming any other powers andresponsibilities that may from time to time be assigned ordelegated to it by the Board.
z

The duties and responsibilities of the Nomination andRemuneration Committee should include the following:

ESG REPORTz

CORPORATE GOVERNANCE

The duties and responsibilities of the Technical Committee
should include the following:

OVERVIEW

11. Governance96

11. Governance

DIRECTORS’ REPORT 2023z

Assessing and monitoring the independence of the
independent Board and Board committee members
at least on an annual basis and ensuring that no conflict ofinterest exists in the cases where a Board Member also acts
as a member of the Board of another company.
z Drawing clear policies regarding the compensation,
remunerations and indemnities of the Board (as approvedby the General Assembly) its committees, CEO, and Senior
Management employees based on their performance inachieving the Company’s strategic objectives and risk
adjusted profits.
z Ensuring that an annual review of remuneration andcompensation plans for members of Senior Management isconducted independently of Executive Management.
z Making the final recommendations to the Board withregards to selecting members of the Senior Management
and/or promoting current employees to Senior Management
positions as per SAMA’s Fit and Proper Rules.
z Making the final recommendations to the Board withregards to dismissing members of the Senior Management.
z Establishing a succession policy and procedure for the
CEO and other key members of Senior Management andmonitoring the implementation of the succession plans andprocess.
z Evaluate the performance of the Board (overall andindividual performance) and its committees in a regularbasis (at least on an annual basis.
z Overseeing the induction programs and training programsfor Board Members.
z Taking any other action or assuming any other powers andresponsibilities that may from time to time be assigned ordelegated to it by the Board.

S A U D I R E I N S U R A N C E C O M PA N Y

Board Member Name

Designation

Responsibilities of the Board of Directors
The important functions of the Board are as follows:z

Providing strategic guidance to the Company, including
setting objectives and formulating
strategic plans.

zSupervising the implementation of strategic plans andmajor transactions and determining the most appropriate
capital structure for the Company, its strategies andfinancial objectives, and approving
all kinds of estimated budgets;z

Approving key policies and procedures and regularly
reviewing and updating them.

z

Establishing and monitoring the Company’s internal
control system and ensuring its adequacy andeffectiveness.

z

Establishing and monitoring a risk management system,
where risks are assessed, managed, and monitored on acontinuous basis.

z

Selecting and changing (if needed) executives in key
positions, and ensuring that the Company has an
appropriate replacement policy for their replacement by
an appropriate alternative with the necessary skills andeligibility for the office.

z

Supervising Senior Management and monitoring theCompany’s performance against the performance
objectives set by the Board.

1st meeting 2nd meeting 3rd meeting 4th meeting 5th meeting 6th meeting 7th meeting
held onheld onheld onheld onheld onheld onheld on30.01.2023

01.03.2023

15.03.2023

04.05.2023

29.08.2023

30.10.2023

27.11.2023

Total meetings
attended in
2023

Mr Marc Maupoux**

Chairman(Previously)









4

Mr Mohamad Al Otaibi**

Member









4

Mr Mishari Al Mishari**

Member









4

Mr Ahmad Sabbagh

MemberMr Abdulrahman Al Jalal*
Mr Waleed Al Monie*







7

Chairman







3

Member

3

Eng Abdulaziz Al al Sheikh* Member







3

*Membership started 11 May 2023**Membership has ended 10 May 2023

z

Ensuring the integrity of the Company’s accounting andfinancial reporting system and the appropriateness of its
disclosure process.

z

Ensuring that the interests of the policyholders are being
protected at all times.

z

Promoting higher standards of corporate governance andensuring compliance with applicable laws and regulations
at all times.

z

Promoting a culture of good corporate governance andhigh ethical standardszGranting Audit Committee the appropriate level ofauthority to investigate any matter within its mandate andshall ensure that the internal audit function is autonomousand is granted full access to all the information it needs to
conduct its activities. In addition, the Board should takeall necessary measures to ensure the responsivenessof Senior Management to Internal Auditors’ queries andrecommendations.

z

The Board shall, based upon a proposal from the
Audit Committee, develop the necessary policies
and procedures to be followed by stakeholders whensubmitting complaints or reporting any violations,facilitating the method by which stakeholders (including
company employees) report to the Board conducts andpractices of the Executive Management’s that violate
applicable laws, regulation’s and rules or raising doubts
as to the financial statements or the internal audit controls
or others, whether such conducts or practices are againstthem or not, and conducting the necessary investigationin that regard; also maintaining the confidentiality ofreporting procedures through facilitating direct contact
with an independent member of the Audit Committee orother specialized committees; appointing an employee
to receive and address complaints or reports sent by
stakeholders; dedicating a telephone number or an email
address for receiving complaints; and providing thenecessary protection to the stakeholders.

OVERVIEW

97

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11. Governance11.10 SAUDI RE BOD MEETINGS ATTENDANCE 2023*
Board Member Name

Designation

Mr Hesham Al-Shaikh**

Chairman(Previously)
Vice Chairman(Previously)

















Mr Fahad Al-Hesni

MD/CEO





















10

Mr Ahmad Sabbagh

Member





















10

Mr Mohamad Al-Otaibi**

Member









4

Mr Jean-Luc Gourgeon**Member









4

Mr Marc Maupoux**

Member









4

Dr Peter Hugger**

MemberMr Abdullatif Al-Fozan*

Chairman





















10

Mr Turki Al Sudairy*Vice Chairman





















10

Mr Waleed Al Monie*

Member













6

Ms Kubra Shehabi*

Member













6

Mr Mousa Binakresh*

Member













6

Mr Abdulrahman Al Jalal*

Member













6

Eng Abdulaziz Al Sheikh*Member













5

Mr Abdulaziz Al Bassam*

Member













5













10

Eng Hussam Al-Suwailem Member*Membership started 11 May 2023**Membership has ended 10 May 2023









Total
meetings
attended in
2023

3

ESG REPORT44CORPORATE GOVERNANCE

Mr Mishari Al-Mishari**

1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
meeting
meeting
meeting
meeting
meeting
meeting
meeting
meeting
meeting
meeting
held onheld onheld onheld onheld onheld onheld onheld onheld onheld on01.03.2023 16.03.2023 17.04.2023 09.05.2023 14.05.2023 15.06.2023 20.07.2023 20.08.2023 12.11.2023 12.12.2023

98

11. Governance11.11 ATTENDANCE RECORD OF GENERAL ASSEMBLY MEETINGS DURING 2023

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Name

Attendance Record
Ordinary General
Assembly Meeting
09/06/1444 – 02/01/2023

Extraordinary General
Assembly Meeting
28/07/1444 – 19/02/2023

Ordinary General
Assembly Meeting
21/10/1444 – 11/05/2023

1. Mr Hesham Al-Shaikh (Chairman)







2. Mr Mishari Al-Hussain (Vice Chairman)







3. Mr Fahad Al-Hesni







4. Mr Mohammad Al-Otaibi







5. Mr Ahmed Sabbagh







6. Mr Jean-Luc Gourgeon







7. Eng. Hussam Al-Suwailem







8. Dr Peter Hugger







9. Mr Marc Maupoux







10. Mr Abdullatif Al-Fozan*







11. Mr Turki Al-Sudairy*







* Mr Abdullatif Al-Fozan and Turki Al-Sudairy has been elected as Board Members on 2 February 2023 corresponding to 09/06/1444 H.

11.12 PERFORMANCE OF THE BOARD
AND ITS COMMITTEES

Board effectiveness evaluation
The Board and committees undergo regular performanceassessment using tools and forms approved by the
Nomination and Remuneration Committee.
The Board made several decisions to adopt changes in
its policies and procedures, in addition to introducing
new programs and systems that will strengthen its
governance.

Results of the annual review of effectiveness of
the internal control procedures of the Company
and the opinion of the Audit Committee withrespect to adequacy of Company’s internal
control system
The Company’s internal control system intends toensure that control and monitoring tools are in place toensure, at a reasonable level, the soundness of financial
report and mitigation of risk. The results of annual audit
conducted by the Internal Auditor have not revealed
any material deficiency or weakness on the Company’s
internal control system.
The Audit Committee confirms that there was no conflict
between the Audit Committee resolutions.

99

OVERVIEW

11. Governance

BOD Members(Executives)

BOD Members (Non-Executive
and Independent)

Five Top Executives
including CEO and CFO

Salaries and benefits

–

–

9,208

Annual compensation

200

1,934

3,730

Meeting fees and expenses

105

2,181

–

Consultancy fees

–

–

–

Benefits in kind granted monthly or yearly

–

–

–

Total

305

4,115

12,938ESG REPORT(SR ’000)

Chairman of the Board is entitled to a minimum amountof SR 300,000 per year. Each non-Board Member isentitled to an amount of SR 5,000 as an attendance fee
per meeting per committee and is entitled to a lumpsum of SR 100,000 per year as a remuneration forcontribution to the committee functions. The Chairmanof the Audit Committee is also entitled to an amount of
SR 120,000. The remunerations of the members of theBoard of Directors and its committees are presented to
the Company’s General Assembly for approval.

CORPORATE GOVERNANCE

The General Assembly has approved on 21 July 2021
an amended remuneration policy for the Board andmembers of committees and Executive Management.
According to the policy, each member is entitled to
SR 5,000 for each attended meeting of the Boardand any Board committee meeting. The Company’s
Board Directors are entitled to a minimum amount of
SR 200,000 as an annual remuneration against Board
directorship and contribution to Board business. The

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11.13 REMUNERATION OF BOARD MEMBERS
AND EXECUTIVE MANAGEMENT

100

11. Governance

DIRECTORS’ REPORT 2023

BOD Member Name

EXCOM
meetings

INVST COM
meetings

TC COM
meetings

Audit COM
meetings

10,000––Mr Hesham Al Shaikh

Chairman

15,00010,000

Mr Fahad Al Hesni

CEO/MD

50,00025,000–30,000–Mr Mishari Al Mishari

Director

20,000–10,000––Mr Ahmad Sabbagh

Director

50,000––15,000–

Mr Jean-Luc Gourgeon

Director

20,00010,000–15,000–Mr Mohamad Al-Otaibi

Director

20,000––––Mr Marc Maupoux

Director

20,000––15,000–Dr Peter Hugger

Director

20,000–––15,000Mr Abdullatif Al-Fozan

Chairman

50,00045,00010,000––Mr Turki Alsudairy

Director

50,00070,000–30,000–

Mr Waleed Almonie

Director

30,00050,000–––

Ms Kubra Shehabi

Director

30,000–––25,000Mr Mousa Binakresh

Director

30,000–15,000––Mr Abdulrahman Aljalal

Director

30,00045,000–––Eng Abdulaziz Alsheikh

Director

25,000–15,000––Mr Abdulaziz Albassam

Director

25,000–15,000––Eng Hussam Al Suwailem

Director

50,000–20,000

–

–

Total

535,000

255,000

95,000105,000

40,000

EXCOM
meetings

INVST COM
meetings

TC COM
meetings

Audit COM
meetings–––

15,000External Committee Members Name

Mr Hisham Al-Akil

S A U D I R E I N S U R A N C E C O M PA N Y

BOD meetings

Ext. Chairman Audit

Dr Volker Lauff

Ext. member Risk Com

–

–

–

–

Mr Abdullah Al Farraj

Ext. Chairman Audit

–

–

–

–

Mr Abdullah Al Farraj

Ext. member Audit

–

–

–

40,000Mr Tarik Zaino

Ext. member Audit

–

–

–

40,000Mr Turki Al Sudairy

Ext. member Technical––

15,000–Mr Abdullatif Al-Fozan

Ext. member Inv Com

–

5,000

–

–

Mr Jean-Luc Gourgeon

Ext. Chairman TC–

30,000––

Mr Jean-Luc Gourgeon

Ext. member EC

40,000–––

Mr Yanal Soudi

Ext. member

–

–

–

25,000Dr Peter Hugger

Ext. member

–

–

–

–

40,0005,000

45,000120,000

Total

N&R COM
meetings

Total meetings
fees

BOD
Remuneration

BOD
Remuneration
2023

Total amountto be paid––

35,000300,000

106,849

141,849––

105,000

200,000

200,000

305,000–

20,00050,000200,000

71,232

121,233

20,00035,000120,000

200,000

200,000

320,000––

45,000200,000

71,233

116,233

5,000

20,00045,000200,000

71,232

116,233–

20,00055,000200,000

71,232

126,233

5,000–

40,000200,000

71,232111,233––

105,000

300,000

193,150

298,151––

150,000

200,000

128,767

278,767–

15,00095,000200,000

128,767

223,767

20,000–75,000200,000

128,767

203,767––

45,000200,000

128,767

173,767–

15,00090,000200,000

128,767

218,767–

15,00055,000200,000

128,767

183,767––

40,000200,000

128,767

168,767––

70,000200,000

200,000

270,000

55,000140,000

1,220,000–

2,157,534

3,377,534

RMC meetings

N&R COM
meetings

Total meetings
fees

BOD
Remuneration

BOD
Remuneration
2023

Total amountto be paid––

15,000120,000

42,74057,740

5,000

–

5,000

100,000

35,616

40,616–––

120,000

63,123

63,123––40,000100,000

47,39787,397––40,000100,000

100,000

140,000––

15,000100,000

35,61650,616

–

–

5,000

100,000

35,616

40,616––30,000120,000

63,45293,452––40,000100,000

52,87792,877––25,000100,000

64,38389,38420,000–20,000100,000

52,87772,87725,000–235,000–

593,699

828,699

OVERVIEW
BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCERMC meetings

ESG REPORT101

CORPORATE GOVERNANCE

11. Governance102

11. Governance11.14 DETAILS OF THE COMPANY'S SOCIAL CONTRIBUTIONSDIRECTORS’ REPORT 2023

Sanctions, penalties, precautionary restrictions imposed by regulatory authorities
Sanction/Penalty/Precautionary
procedure/Preventive measure

Reasons for violation

Imposing authority

Measures undertaken to remedy andavoid such non-compliance in the future

Delayed announcement

Based on Saudi Re’s announcement for theformation of audit committee, CMA observedthat the company did not comply with thetiming of disclosing the formation of theaudit committee, as the Board of Directors’decision was dated 14 May 2023, central bankapproval was obtained on 22 June 2023, andthe announcement of the audit committee
formation was made on 11 December 2023 on
the Saudi Stock Exchange website.

Capital Market
Authority

announce company’s
developments (whether material
under Article 79 of these rules ornot) on time without any delays.

Violation of Insurance
Authority’s supervisory
and control instructions

Delay in submitting financial reporting
templates for the pilot operation related
to the fourth phase of the transition plan
to the International Financial ReportingStandards (IFRS I7).

Insurance
Authority’s

financial reporting templates
for the pilot operation on time

Subject of the penalty

2022

2023
Number of
resolutions

Sum total for the
penalty inSR

Number of
resolutions

Sum total forthe penalty
in SR

Violation of Saudi Central Bank’s/Insurance Authority
supervisory and control instructions.*

1

40,0001

20,000Violation of Saudi Central Bank’s/Insurance Authority
customer protection instructions.

0

0

0

0

Violation of Saudi Central Bank’s/Insurance Authority
instructions on AML and CTF.

0

0

0

0

S A U D I R E I N S U R A N C E C O M PA N Y*Delay in submitting financial reporting templates for the pilot operation related to the fourth phase of the transition plan to the International Financial
Reporting Standards (IFRS I7).

11.15 THE COMPANY’S SIGNIFICANT PLANS,DECISIONS, AND FUTURE EXPECTATIONSzzApproval of the Annual Financial statement ending
31 December 2022, and Quarterly Financial Statements
ending 31 March, 2023, 30 June 2023 and 30 September
2023 including technical reserves.
Approval of the Annual Financial Statements of
Saudi Re Labuan Branch for the Financial Yearending 31 December 2022.

z

Approval of Appointment of External Auditor.

z

Approval of Agenda of General Assembly Meeting
to be held on 11 May 2023.

z

Approval of Appointment of Chair, Vice Chair, MD, Sub
Committees Chair and Members, Company Representative
to CMA & Tadawul, Secretary to the Board and Saudi Re
Representatives to Probitas Holding, Bermuda Ltd. andSubsidiaries.

z

Resolution of the Board “Not Proceeding” with the processof raising the capital through rights Issue offering.

z

Approval of entering into a non-binding memorandumof understanding with the PIF.

z

Approval of Aviva’s revised Non-Binding offer, andauthorizing the Chairman or Vice Chairman to sign the
response letter.

103

z

Approval of resignation of MD/CEO from Executive
Committee and Jean-Luc Gourgeon Appointment to
Executive CommitteezApproval of Appointment of Appointed Actuary
assignment.

zApproval of Appointment of Labuan External Auditor.

z

Approval of Retrocession Appropriateness Reportsubmitted by the Appointed Actuary.

z

Approval of Extension of PIF MoU.

z

Approval of nomination of Mr Bader Alshaya as
an additional member to the Technical Committee.

OVERVIEW

11. GovernanceAffiliate Name

Probitas Holding Ltd.

CapitalCompany’s ownership
percentage

Main scope ofbusiness

Country ofoperation

Country ofincorporation

4.508.982 USD

49.9

Insurance

United Kingdom

BermudaInterest in a class of voting shares held by persons (other than the Company’s Directors, Senior
Executives and their relatives) who have notified the Company of their holdings pursuant to Article(45) of the Listing Rules, along with any change to such rights during the last fiscal year
Name of the person of interest

1.

Number of shares at the
beginning of the year

Number of shares at theend of the year

5%

5%

Ahmad Hamad Algosabi & Bros. Company

Net change

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

11.16 DETAILS OF AFFILIATE COMPANY

Change ratio–0%

Names of the persons of interest

Beginning of the year
Numberof shares

Percentageof ownership

End of the year

Debt
instruments

Numberof shares

Percentageof ownership

Debt
instruments

NetchangeChangeratio%

ESG REPORT

Details of any interest, contractual securities or rights issue of the Board members and theirrelatives on the shares or debt instruments of the Company or its affiliates, and any change onsuch interest or rights during the last fiscal year

1. Hesham Al-Sheikh** (Chairman)

8,910

0.010

–

–

–

–

–

–

2. Mishari Al-Hussain(Vice Chairman)

4,455

0.005

–

–

–

–

–

–

3. Fahad Al-Hesni

55,000

0.062

–

–

–

–

–

–

4. Mohammad Al-Otaibi
5. Ahmed Sabbagh
6. Jean-Luc Gourgeon

–

–

–

–

–

–

–

–

356,400

0.400

–

–

–

–

–

–

–

–

–

–

–

–

–

–

7. Eng. Hussam Al-Suwailem

–

–

–

–

–

–

–

–

8. Dr Peter Hugger

–

–

–

–

–

–

–

–

9. Marc Maupoux

–

–

–

–

–

–

–

–

10. Abdullatif Al-Fozan*

–

–

–

–

–

–

–

–

11. Turki Al-Sudairy*

–

–

–

–

–

–

–

–

* Mr Abdullatif Al-Fozan and Turki Al-Sudairy has been elected as Board Members on 2 February 2023 corresponding to 09/06/1444 H.

CORPORATE GOVERNANCE

Board Members term ended 10 May 2023

104

11. Governance
Details of any interest, contractual securities or rights issue of the Senior Executives and theirrelatives on the shares or debt instruments of the Company or its affiliates, and any change onsuch interest or rights during the last fiscal year
Names of the persons of interest

Beginning of the year
Numberof shares

Percentageof ownership

End of the year

Debt
instruments

Numberof shares

Percentageof ownership

Debt
instruments

NetchangeChangeratio%

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

Board Members term elected 11 May 2023
1. Abdullatif Al-Fozan (Chairman)

–

–

–

579,100

0.065

–

–

–

2. Turki Al-Sudairy (Vice Chairman)

–

–

–

233,635

0.26

–

–

–

3. Fahad Al-Hesni

–

–

–

55,000

0.062

–

–

–

4. Ahmed Sabbagh

–

–

–

356,300

0.400

–

–

–

5. Eng. Hussam Al-Suwailem

–

–

–

–

–

–

–

–

6. Abdulrahman Al-Jala

–

–

–

69,000

0.08

–

–

–

7. Kubra Ghulam Shehabi

–

–

–

–

–

–

–

–

8. Abdulaziz Al-Shiekh

–

–

–

–

–

–

–

–

9. Mosa bin Akresh

–

–

–

112,528

0.13

–

–

–

10. Waleed Al-Monie

–

–

–

–

–

–

–

–

11. Abdulaziz Al-Bassam

–

–

–

–

–

–

–

–

Debt
instruments

Numberof shares

Percentageof ownership

Debt
instruments

NetchangeChangeratio%–

970,340

1.09

–

–

–

Names of the persons of interest

Beginning of the year
Numberof shares

Percentageof ownership

End of the year

Board Members relatives term elected 11 May 2023
1. Ali Al-Fozan––

2. Sara Al-Rabia

–

–

–

156,990

0.18

–

–

–

3. Fawaz Al-Sudairy

–

–

–

150,830

0.17

–

–

–

4. Salman Al-Sudairy

–

–

–

52,579

0.06

–

–

–

5. Sara Bin Akresh

–

–

–

6,220

0.007

–

–

–

6. Fahad Al-Suwailem

–

–

–

8,132

0.009

–

–

–

7. Omar Al-Jalal

–

–

–

115,000

0.129

–

–

–

8. Halah Al-Isa

–

–

–

118,953

0.13

–

–

–

105

OVERVIEW

11. Governance

Details of any interest, contractual securities or rights issue of the Senior Executives and theirrelatives on the shares or debt instruments of the Company or its affiliates, and any change on suchinterest or rights during the last fiscal year
End of the year

Debt
instruments

Numberof shares

Percentageof ownership

Debt
instruments

NetchangeChangeratio%

1. Fahad Al-Hesni

55,0000.062–

55,000

0.062

–

–

–

2. Ahmed Al-Jabr

–

–

–

–

–

–

–

–

3. Nilmin Pieries

–

–

–

–

–

–

–

–

4. Fadi Al-Qutub

–

–

–

–

–

–

–

–

5. Ahmed Al-Qarishi

–

–

–

–

–

–

–

–

6. Ms Dana Barhoumeh

–

–

–

–

–

–

–

–

11.17 INFORMATION ON ANY LOANS, AND AMOUNTS PAID BY THE COMPANY IN REPAYMENT OF
LOANS DURING THE YEAR

1.

Creditor’s Name

Amount ofprincipal debt

Loan term

Arqaam capital

56,797,019

Open ended with annual renewal

Amounts paid by theCompany in repaymentsof loans during the year

Remaining
amountTotal indebtednessof company and its
affiliates

1,677,423.08

56,797,019

56,797,019

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

Percentageof ownership

ESG REPORT

Beginning of the year
Numberof shares

CORPORATE GOVERNANCE

Names of the persons of interest

106

11. Governance

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

11.18 THE COMPANY’S REQUESTS OF SHAREHOLDERS REGISTRY, DATES, AND REASONS THEREOF

Number of theRequest dateCompany’s requestsof shareholders registry

Request reasons1.

28.12.2022

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder rightand to prepare for the General Assembly Meeting convened on 02 January 2023

2.

05.01.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right3.

01.02.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right4.

07.02.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right5.

19.02.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder rightand to prepare for the General Assembly Meeting convened on 19 February 2023

6.

01.03.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right7.

31.03.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right8.

30.04.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right9.

08.05.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder rightand to prepare for the General Assembly Meeting convened on 11 May 2023

10.

02.07.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right11.

01.08.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right12.

28.08.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right13.

30.09.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right14.

30.09.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder right15.

03.12.2023

To comply with Article number 38 of the Implementing Regulations of the Cooperative Insurance
Companies Control Law and to calculate the differences in the shareholder rightz

It has no convertible debt instruments, contractual
securities, preemptive right or similar rights issued
or granted by the Company during the financial year
ended 31 December 2023.

z

There have not been any conversion or subscription
rights under any convertible debt instruments,
contractually based securities, warrants or similar
rights issued or granted by the Company during 2023.

z

There have not been any, redemption, purchase orcancellation by the Company of any redeemabledebt instruments and the value of such securities
outstanding.

z

During 2023, there have not been any arrangement
or agreement under which a Director or a Senior
Executive of the Company has waived any
remuneration.

z

During 2023, there is no any business or contract towhich the Company is a party and in which a Directorof the Company, a Senior Executive or any person
related to any of them is or was interested.

During 2023 there have not been:z

Any arrangement or agreement under which a Director
or a Senior Executive of the Company has waived any
remuneration.

z

Any arrangement or agreement under which ashareholder of the Company has waived any rights
to dividends.

Investments or reserves for the benefitof employees
The Company has not made any investments or reserves
for the benefit of its employees.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

1. Reinsurance contracts for one year with Probitas
Corporate Capital Ltd. which is owned by Probitas
Holding (Bermuda) Limited, and has an indirectinterest for the Chairman of the Board of Directors
Mr Hisham Abdulmalik Al-Shaikh, MD/CEO Mr Fahad
Al-Hesni and Board Member Mr Jean-Luc Gourgeon
for their membership in the Board of Directors of theparent company Probitas Holding (Bermuda) Ltd.
Also, there is an indirect interest for Board Member
Mr Jean-Luc Gourgeon for his membership in the
Board of Directors of Probitas Corporate Capital Ltd.
noting that the value of transactions during 2023 isestimated at SR 127,986,637 with no preferentialconditions.

11.20 DECLARATIONThe Company further declares that:z

Proper books of account have been maintainedz

The system of internal control is sound in design andhas been effectively implementedz

There are no significant doubts concerning theCompany’s ability to continue its activity.

ESG REPORT

11.19 TRANSACTIONS BETWEEN THE COMPANY
AND RELATED PARTIES107

OVERVIEW

11. Governance

CORPORATE GOVERNANCE

The External Auditor’s report does not contain any
reservations on the financial statements, nor has theBoard made any recommendation to replace the Auditor
before the end of the term.

108

12. Risk Management
12.1 CURRENT AND FUTURE RISKS
Saudi Re’s Board sets levels for the Company’s risk
appetite and risk tolerance, and carries out strategicplanning and business planning functions. The businessis managed through the Board of Directors, Board
Committees, and the Executive Management team.
The Board establishes and monitors the Company’s
internal control system to ensure the adequacy andeffectiveness of the Company’s risk management.
As per Note (31) to the financial statements, theCompany is exposed to risks including to reinsurance
risk, regulatory framework risk, claims management risk,
reserving and ultimate reserves risk, credit risk, liquidity
risk, currency risk, special commission rate risk, andcapital management.

CLAIMS MANAGEMENT RISKClaims management risk may arise in mainly in theevent of inaccurate or incomplete case reservesand claims settlements. A dedicated Claims
Management Department works within set policies
and procedures to ensure that claims are managed
in a fair, efficient and timely manner, in accordancewith the policy’s terms and conditions, the regulatory
requirements, and the business’ broader interests.

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

The Company’s internal annual review of the risk in 2023
identified the following current and future risks:

CLAIM RESERVING RISKREINSURANCE RISK

Reinsurance risks include accumulation,
concentration, catastrophe exposure, high exposure
to single large losses, and increased frequency andseverity of claims. It can be mitigated through thediversification of accepted risk, implementation ofunderwriting guidelines, and the use of retrocession
protection.

Risk occurs where established reinsurance liabilities
are insufficient due to inaccurate projection. To
manage reserving risk, the actuarial team uses a
range of recognized techniques to project ultimate
claims, monitor claims development patterns andstress-test ultimate reinsurance liability balances.

CREDIT RISKRETROCESSION RISK

It refers to the failure of retrocessionaires tofulfill their obligations including defaulting theclaims payments. Retrocession risk is controlled
by a robust selection process that considers
diversification of reinsurance sources as well as thefinancial position and credit rating of the reinsurers.

This risk arises from the default of counterparties
such as retrocessionaires, cedents, brokers anddebt issuer. This risk is addressed through policies
that ensure the level of credit quality, financial andlegal status, as well as the development of therelationship and periodic monitoring of receivables.

It refers to the unavailability of funds required
to meet the Company financial obligations, andloss due to the liquidation of investments. To limit
the impact of this risk, the Company periodicallymonitors the liquidity requirements and adopts aninvestment policy that sets out controls to manage
the liquidity risk.

LEGAL AND REGULATORYCOMPLIANCE RISKSThe Company is required to be in compliance withlegal and regulatory requirements for regulatory
bodies such as, Saudi Central Bank, Saudi CapitalMarket Authority, the Ministry of Commerce, andthe Ministry of Human Resources and Social
Development. The Company applies a strict
compliance policy and has in place a dedicatedCompliance Department reporting to the Audit
Committee.

BUSINESS CONTEXT, STRATEGY,
AND PERFORMANCE

LIQUIDITY RISK109

OVERVIEW

12. Risk Management

CURRENCY RISKMARKET RISK

Market risk refers to the likelihood of losses which
could result from the operation of market forces andresult in shrinkage in capital. Market risk exposure
for Saudi Re arises mainly from the investment
portfolio, interest rate risk, equity risk, economic
instability, such as change of oil prices. Risks arisingfrom the above are managed by the Investment
Policy Statement that is approved by the Board.

To Saudi Re, Information is important asset. As
information systems and data become increasingly
used in the Company's activities, they are subject topenetration, theft, disabling, leakage, modification
or destruction by unauthorized persons or entities
whose purpose is to harm the Company, its assets,
employees, and others. Saudi Re uses a range of
regulatory, technical and preventional tools, andpractices aimed at protecting computers, servers,
networks and the intrusive data from penetration,
damage, change or disruption of access to
information or services.

REPUTATION RISKThe Company’s reputation is considered asimportant asset to gain the trust of the Company’s

ESG REPORTCYBER RISKCORPORATE GOVERNANCE

The Company is exposed to the currency exchange
risk due to fluctuation in exchange rates of foreign
currencies in relation to investments or underwriting
commitments in foreign currencies. To limit the
impact of this risk, the Company periodicallymonitors the currency risk to manage the currency
risk and if necessary, take the appropriate actions.

110

12. Risk Management

S A U D I R E I N S U R A N C E C O M PA N Y

DIRECTORS’ REPORT 2023

existing and future clients, therefore, any
information, news, associated with the Company
directly or non-directly, can harm the reputation of
the Company and might lead the clients to lose theirtrust in the Company as a reinsurance company.
To mitigate this risk, the Company retains the trustof its partners in a good manner through a suitablecommunication channels, and demonstrating thestrength of the Company and its brand in all times.
The Company also has financial strength rating
AA+ by SIMAH’s Credit Rating Agency, Tassnief,and A3 rating from Moody’s. The Company also
has a financial strength rating of “A-” long-term
issuer credit and insurer financial strength rating
and a “gcAAA” regional scale rating with a Stable
Outlook by Standard & Poor’s Global (S&P) and“A3” Insurance Financial Strength Rating (IFSR)
international scale and a A1.sa national scale IFSR
rating with stable outlook by Moody’s.

RATING RISK

Reinsurance companies are subject to rating
downgrades by rating agencies if the Company isunable to meet the agency requirements, which
may affect the Company’s reputation and growth.
The rating agencies primarily assess the Company’s
ability to comply with its financial requirements;
therefore, financial losses, significant growth orsovereign rating of Saudi Arabia is a major factor
affecting the Company’s ability to comply with rating
agencies financial requirements. To mitigate this risk,
the Company manages the capital required by therating agencies on a quarterly basis and periodically
discusses with them to update them in respect of
the business and market and if any concerns raised
are addressed and appropriate action is taken if
there is any significant change in the Company’s risk
profile.

EMERGING RISKEmerging risk is considered to be a high risk as itis hard to identify it at an early stage, which canbe reduced if it is identified early. The Company
monitors all events that might be a peril to theCompany, keeps its Board of Director, related
committees and Executive Management informed
and provides the necessary plan to avoid, transfer or
reduce the risk.
One of the emerging risks is non-adoption of
ESG standards. An example of these standards
is addressing climate change and its impact asreinsurance provides various levels of security overa long time period. Increased temperature variability
and the resulting heatwaves can not only affectagriculture, productivity, water resources, health andmortality, but can also increase the unsuitability incertain regions. The Company is adopting different
initiatives to ensure meeting ESG standards andhas published Sustainability Reports since 2020highlighting the Company initiatives towards ESG
standards compliance.
In addition, global conflicts are considered emerging
risks for the insurance sector as that may leadto increase the cost of insurance and reduce theavailability of insurance protection. The current
Russia & Ukraine conflict is one of the examples.
However, the Company has limited exposure to theconflicted region, and it is continuously monitoring
the exposure and will take any necessary actions toaddress any future impact of the current conflict.

Saudi Reinsurance Company
Northern Ring Rd,
Al Wadi, Riyadh 13313,
Saudi Arabia
www.Saudire.net