RIYADH: Saudi Reinsurance Co., or Saudi Re, board recommended a capital hike to support its future expansion activities. The company"s new capital is to be increased from SR891 million ($237.5 million) to SR1.336 billion through a rights issue, it said in a statement on April 8. The capital hike through SR445.5 million rights issue will increase the number of shares from 89.1 million to 133.65 million, the statement revealed. “In line with our long-term strategy towards 2026, we have set out with a clear ambition at the onset of 2021 to evolve and diversify as a company that can reliably serve the risk and growing reinsurance needs of the Kingdom, aiming to become among the top 50 global reinsurers,” Saudi Re CEO, Fahad Al-Hesni, said. “Saudi Re has attained a growth rate of 19 percent over the past three years, as we expand our activities across more than 40 markets in the Middle East, Asia and Lloyd’s Market in the United Kingdom and Africa,” stated Al-Hesni. Pending approval of the Saudi Central Bank, the Capital Market Authority, and other regulatory authorities, this move will strengthen Saudi Re’s capital base. The company will announce the appointment of a financial advisor and submission of the capital increase application file in due course. ad Saudi Re successfully completed a capital increase from SR810 million in 2021, by capitalizing SR81 million from retained earnings. The capital increase was done through a 1-for-10 bonus share distribution. Al-Hesni added that the company’s gross written premium increased by 19.3 percent to SR1.1 billion in 2021, marking the highest premium level achieved in the history of the company.