Saudi Reinsurance Co. plans to boost its capital by SR267.3 million ($71 million) through a strategic agreement with the Public Investment Fund (PIF). This agreement, signed on July 4, will increase the company’s capital from SR891 million to SR1.15 billion by issuing 26.73 million new shares at SR10 each. PIF will fully subscribe to these shares at SR16 per share, totaling SR427.68 million.
This transaction will give PIF a 23.08% stake in Saudi Reinsurance. The agreement, initially outlined in October 2023 and extended in December, reflects Saudi Arabia’s growing business environment. Supported by PIF’s subscription, this capital increase aligns with Vision 2030, promoting investment, economic diversification, and strengthening the Kingdom’s insurance sector.
Finalization is subject to regulatory approvals and the company’s Extraordinary General Assembly. Upon completion, three PIF-nominated members will join Saudi Re’s board. Al Rajhi Financial Co. and GIB Capital are advising on the transaction.