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INSURANCESaudi Re for Coop. ReinsPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR12.0SR1.2bn ($320.4mn)100.0mn52 week range H/L (SR) 19.3/7.8Avg daily turnover (mn) SR US$3m 36.23 9.6812m 26.02 6.95Raw Beta 6m 1yr0.87 0.82ReutersBloomberg8200.SESAUDIRE ABPrice perform (%) 1M 3M 12MAbsolute (%) 3 19 (35)Market (%) 6 32 (39)Sector (%) (2) 48 (26)Website: www saudi-re.comValuation multiples2006 2007 2008P/E (x) NA NA 34.0P/B (x) NA NA 0.9P/Sales (x) NA NA NMDiv yield (%) NA NA NASaudi Re headquartered in Riyadh is a first cooperative reinsurance company ofSaudi Arabia, established in May 2008. It provides life and non-life Sharia-compliantreinsurance products under the purview of The Saudi Arabian Monetary Agency(SAMA) for treaty and facultative types of reinsurance in all classes of business.Company financials2008*YoY(%)CAGR(%)(05-08)Net Insurance Premium SRmn - - -Total Revenues SRmn - - -Net Income SRmn 26 - -Assets SRmn 1,033 - -Equity SRmn 1,026 - -Investments SRmn 1,012 - -Technical Reserves SRmn 1 - -Combined Ratio % NM - -Net Mgn % NM - -ROE % 2.5 - -ROA % 2.5 - -Div Payout % - - -EPS SR 0.3 - -BVPS SR 10.3 - -Source: Company, NCBC Research* 2008 figures are for 8 months period ending December 31, 2008Segment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.11MSCI Saudi (domestic – small cap) NAFree float (%)Free float 40.00Relative share price perf.11,000209,000157,000105,00053,000-M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASISaudi Re (RHS)Top 5 shareholders (%)Ahmed Hamad Al Gosa bi and Co 5.0Jordan Islamic Finance Bank 5.0Source: NCBC ResearchSource: NCBC Research• Product profile: Saudi Re offers a wide range of insurance related products such asmarine insurance (hull and cargo), engineering insurance (machinery breakdown,contractor’s risks), motor insurance and insurance for third party liability.• Financials: In 2008, the company posted a net profit of SR25.9mn in 2008, which isprimarily attributable to income from other sources partially offset by high general andadministrative expenses. Total asset base as on 2008 was SR1,033.3mn, while theshareholder’s equity stood at SR1,025.5mn• Recent developments: Saudi Re reported its 1Q-09 results on April 20, 2009. Thecompany recorded a net profit of SR0.1mn in 1Q-09. Corresponding figures for theyear-ago period are not available. In April 2009, the company announced that it couldproceed with its Takaful life insurance portfolio, after receiving the license from SaudiArabian Monetary Agency (SAMA). In October 2008, Standard and Poor’s assigned aBBB+ rating to Saudi Re, citing stable outlook. In August 2008, Saudi Re became thefirst company in Saudi Arabia to receive a Reinsurance license by Saudi ArabianMonetary Agency. In March 2008, Saudi Re offered 40mn shares (40% of the capital)to the public. The issue was oversubscribed by more than three times.JUNE 2009SAUDI RE FOR COOPERATIVE REINSURANCE COMPANY187