Saudi Re gets regulatory approval on capital hike

Saudi Reinsurance Co. (Saudi Re) has received the approval of the Insurance Authority on the capital increase, while suspending the pre-emptive rights. The Public Investment Fund (PIF) will fully subscribe to the new shares, bringing its ownership in the company to 23.08% after the capital increase, with a total subscription value of SAR 427.7 million.

This will be subject to finalizing all the regulatory approvals.

Saudi Re inked, on July 4, a binding subscription agreement with the PIF. As part of the subscription agreement, the insurer will increase its capital from SAR 891 million to SAR 1.15 billion, while suspending the pre-emptive rights, data compiled with Argaam showed.

Additionally, the insurer signed, on Oct. 7, 2023, a non-binding MoU with the PIF, under which the sovereign fund will subscribe to new cash shares in the former by way of capital increase while suspending pre-emptive rights of the current shareholders, Argaam reported.

In December 2023, the company agreed with PIF to extend the MoU previously signed for subscription to new cash shares for addition six months starting Jan. 7, 2024.