Riyadh – Mubasher: Arqaam Capital maintained a ‘Buy’ recommendation on Saudi Reinsurance Company (Saudi Re) and revised the stock’s target price (TP) up to SAR 11 per share, according to a recent report.

This comes due to improvement in margins and more sustainable investment yields for the sole Saudi reinsurer, which the research firm considers amongst its preferred picks in the Saudi insurance sector.

Arqaam Capital expects underwriting margin to reach 4.2% by 2023, supported by further optimization and geographical diversification in the firm’s business portfolio.

Moreover, the Dubai International Financial Centre (DIFC)-based investment bank noted that despite a slowdown in written premium by 4% in the last two years, Saudi Re outperformed peers, showing improved combined ratios by 5% compared to an 8% decline for global peers.