Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has acquired a 23.08% stake in Saudi Reinsurance Company (Saudi Re), Gulf Business reported.
The acquisition aims to enhance domestic capacity, support rapid local growth, and strengthen the kingdom’s insurance sector.
PIF’s investment is set to empower Saudi Re to deliver advanced reinsurance solutions, improve risk management for insurers, and enable better coverage for policyholders while stabilizing earnings fluctuations. In a statement, PIF emphasised that the investment will enable Saudi Re to meet rising demand, develop innovative products, and expand its operations both domestically and globally.
The deal is expected to retain more reinsurance premiums within Saudi Arabia, foster growth in the local reinsurance sector, and enhance insurance coverage for commercial activities across the country.
Founded in 2008, Saudi Re holds investment-grade ratings of A- from S&P Global and A3 from Moody’s. The company has shown strong performance, with total written premiums reaching $520 million (SAR 1.94 billion) in the first nine months of 2024, achieving a compound annual growth rate of 17% over the five years ending 2023.
‘By investing in Saudi Re, PIF is bolstering a leading regional reinsurer and reinforcing Saudi Arabia’s insurance sector, which is vital for sustainable economic growth. This investment improves access to quality financial services for insurers and their policyholders, strengthening the sector,’ said Sultan Alsheikh, head of Financial Institutions in MENA Investments at PIF.
PIF plays a central role in Crown Prince and Prime Minister Mohammad bin Salman’s strategy to diversify the economy away from oil dependence by fostering new industries and driving infrastructure development. Since 2017, the $925 billion fund has launched 95 companies and created over 644,000 direct and indirect jobs. In October 2024, PIF Governor Yasir Al Rumayyan highlighted the fund’s growing focus on domestic economic initiatives, aiming to develop new industries and promote economic diversification.
PIF’s portfolio spans investments in global tech firms like Uber Technologies, stakes in sports entities including Newcastle United, and electric vehicle companies like Lucid and Ceer. It is also behind ambitious projects such as the $500 billion futuristic NEOM City and the Red Sea Development Company’s mega tourism initiatives.