#1Investor Presentation Financial Year 2021 Saudi Reinsurance Company TASI 8200 RIC 8200.SE ISIN SA1210540419 Saudi Re IR App: IOS Android Public إعادة Saudi Re#22 Disclaimer إعادة Saudi Re This presentation has been prepared by the management of Saudi Reinsurance Co "Saudi Re" ("The Company"). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The information included in this presentation has been provided to you solely for your information and background and is subject to updating, completion, revision and amendment and such information may change materially. Unless required by applicable law or regulation, no person is under any obligation to update or keep current the information contained in this presentation and any opinions expressed in relation thereto are subject to change without notice. No representation or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein. Neither the Company nor any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentation or its contents. This presentation may include forward-looking statements that reflect the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, performance, growth, strategies and the industry. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company's actual results of operations, financial condition, liquidity, performance, prospects, growth or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company's results of operations, financial condition, liquidity and growth and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company and each of its directors, officers and employees expressly disclaim any obligation or undertaking to review, update or release any update of or revisions to any forward-looking statements in this presentation or any change in the Company's expectations or any change in events, conditions or circumstances on which these forward- looking statements are based, except as required by applicable law or regulation. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe any such restrictions. This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Public www.saudi-re.com#3Scaling the Heights Our saga to date tells of a historic journey of exponential growth and diversification. At inception, we focused on building capacity while setting a tone and an ethos. Very rapidly, we were making inroads regionally and building scale. And last year, Saudi Re recorded phenomenal growth and achieved industry-leading excellence regionally. In the years ahead, we have set our sights on scaling the heights in the international sphere, embracing greater diversification as we go. Public إعادة Saudi Re#4www.Saudi-re.com بتاريخ Reinsurance Company of the Year Saudi Re 8TH MIDDLE EAST INS AWARDS 2021 REINSURANCE COMPANY OF THE YEAR Public Saudi Reinsurance Company Regulated by Saudi Central Bank إعادة Saudi Re#500 000 0 000 Profile and Strategic Direction 0000000000 00000000 000000000 00000 0.00000 Public 1000 0000 00 إعادة Saudi Re#66 Saudi Re Profile 1st Saudi Reinsurer Established 2008 SAR 891M Capital إعادة Saudi Re A A3 Rating by Moody's +300 Clients - B2B +100 Employees +40 57% Countries International Business Ranks 1# Among Middle East Reinsurers HO: Riyadh Branch: Malaysia Public www.saudi-re.com#7Board of Directors Rich & Diversified Experiences إعادة Saudi Re 7 Hesham Al Shaikh, Chairman • 35+ years in financial services • Chairman of the Board, memb of the Executive Committee, an Investment Committee • Chairman of Mekyal Financial • Board Member of Probitas Hc Company Founder & Chairman of the Board of Watan First Institute Jean-Luc Gourgeon, Member of the Board • 30+ years of global reinsurance experience Chairman of the Technical Committee and Member of the Executive Committee BoD member Probitas Holding Bermuda & Probitas Corporate Capital, UK • Served as the European General Manager at Everest Re (UK), and CEO of Paris Re (France) and Group CUO Marc Maupoux, Member of the Board 30+ years of experience in the global reinsurance market and actuarial practice. • Chairman of the Nomination and Remuneration Committee • Member of the Technical Committee • Served as CEO of Exin Re,. (Zurich), and SVP Head of Property and Engineering Worldwide in Axis Re Europe, (Zurich) Mishari Al Mishari, Vice Chairman • 35+ years in financial services. Vice-Chairman of the Board, Member of the Investment Committee and Nomination and Remuneration Committee. • Board Member of Hana Food Industries Company Member of the Boards of several companies in the areas of real- estate development and training and education Mohammed Al-Otaibi, Member of the Board • 30+ years of experience in the financial and investment industry • Chairman of the Risk Committee and Member of the Nomination and Remuneration Committee. ⚫ Board Member of Riyadh Bank and a member of the Risk Management Committee and Audit Committee of Riyadh Bank. • Vice-Chairman of Abdullah Saad Abo Moati Stationary. • Eng. Hussam AlSuwailem, Member of the Board 10+ years of the banking and asset management • Member of the Investment Committee • International investments analyst covering M&A, venture investments and infrastructure project. SALIC (PIF Subsidiary). • Credit Portfolio Manager. SAMBA Financial Group, National Commercial Bank, Riyadh Bank Public Ahmed M. Sabbagh, Member of the Board • 40+ years in KSA insurance sector • Member of the Technical Committee, nomination and Remuneration Committee • Former Founder and General Manager, Islamic Insurance Company of Jordan, and served as President od the International Federation of Takaful Insurance Companies and a BoD member in The Tunisian Takaful Co and Aman Takaful Co (Lebanon) Dr. Peter Hugger, Member of the Board 35+ years of experience in the global reinsurance market (Europe, Middle East, Asia and Latin America). Member of Risk Committee Member of the Audit Committee Board Member of MSG Global Solutions Zurich • Adviser to the Board at Innoveo AG Zurich Fahad Al-Hesni, Managing Director/CEO • 25+ years of insurance experience across underwriting, claims, and reinsurance. • Member of Executive Committee. • BoD member Probitas Holding Bermuda • Member of International Insurance Society (IIS) www.saudi-re.com#88 Executive Management Sound Industry Knowledge إعادة Saudi Re Nilmin Pieries Chief Financial Officer • 30+ in accounting, finance, investment, and risk management • Worked in in Insurance and Reinsurance Companies •MBA from Nottingham University Associate of the Chartered Institute of Management Accountants, CIMA UK Ahmed Al-Jabr Chief Operating Officer & Board Secretary • 20+ of experience in the KSA insurance sector with focus on strategy management, HR, and business development • Served as GM Strategy and GM HR & Support Services in Tawuniya • MBA from Bradford University in the UK Ahmad Al-Qarishi Chief Underwriting Officer • 14 +in Banking and Insurance supervision, risk management and actuarial practice •Worked previously as a supervisor in SAMA • MA in actuarial science from Ball State University in USA ⚫ First GCC national to earn fellowship from the Society of Actuaries in USA (FSA) Fadi Al-Qutub Chief Investment Officer 20+ in the investment and portfolio management fields. Previously served as CIO and Head of Asset mgmt. in Al Istithmar Capital, Al Bilad Investment Company, and SHUAA Capital Saudi Arabia. Bsc. and Diploma in Management and Finance from the University of Bahrain. ⚫ CEFA from FSA UK, International Diploma in financial services, CWM and CHP from AAFM. ⚫ CME 1&4 certified by CMA, and CIRO by MEIRA. Public www.saudi-re.com#9Strategic Direction Focus On Delivering Value To Stakeholders إعادة Saudi Re Ma G Scale Scale, which relates to increasing the economic scale, earnings and capital base, and building resilience to loss events. Diversification We aim at diversification, both geographically and also in terms of risk type, in which we endeavor to maintain a well balanced portfolio. Technical and operational capabilities We continually seek to develop our capabilities. These encompass technical capabilities, risk management capabilities, technological and operational capabilities, and human capital. Relationships We value strong relationships, especially with cedants, brokers, partners, and regulators. Our corporate brand is also a strong factor in our relationship building. Financial soundness Financial soundness is also a key facet in the robustness of our business. We need to retain our technical profitability, capital adequacy and ensure favorable returns on investment. 9 Public www.saudi-re.com#1010 Saudi Re Future Growth Leveraging Competitive Advantage in Home Market to Grow and Diversify Internationally إعادة Saudi Re Saudi Re as the National Reinsurer Expansion in Middle East & Asia ☐ ■ Leverage competitive advantage in home market Support local market retention and capitalize on potential growth in the Kingdom ■ Sustainable Local long term growth- Inherent Defects Insurance (IDI) ■ Continue expansion in target high growth market in the Middle East and Asia ■ Benefits from brand and cooperative model LLOYD'S International Expansion via Lloyd's Writing business from Lloyds market ■ 49.9% Ownership in Probitas Holding Bermuda Public www.saudi-re.com#1111 Strategic Milestones Steady Growth Trajectory Reached 1B Premiums Lloyd's Participation Enhanced Reserves First Branch outside KSA (Malaysia) Expanded in MENA Expanded in Asia Restructuring إعادة Saudi Re Proposed rights Exclusive Exceeding 1B issue 2 for1: Capital Reinsurance GWP Right For IDI insurance A3 Rating 60% International Investing In Lloyd Business Probitas Holdings Increase By 50% Capital Increase By 10% IPO BBB+ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Start Up Building Capability Regional Building Scale Public International Diversification www.saudi-re.com#1212 Saudi Re Geo Presence International Expansion & Diversification إعادة Saudi Re 40+ MARKETS Serving clients in 40+ countries in MENA, Asia and Africa UK 1 Africa 19 ALGERIA BOTSWANA CAMEROON Middle East SAUDI ARABIA BAHRAIN JORDAN KUWAIT EGYPT ETHIOPIA LEBANON GHANA IVORY COAST OMAN KENYA QATAR MADAGASCA TURKEY R UAE MALAWI MAURITIUS Asia 16 BANGLADESH BRUNEI CAMBODIA CHINA INDIA INDONESIA KAZAKHSTAN MALAYSIA PAKISTAN PHILIPPINES SINGAPORE SOUTH KOREA SRI LANKA TAIWAN THAILAND VIETNAM Direct Participation Indirect Participation / Lloyd's MOROCCO NIGERIA TANZANIA, UN ITED REP. TOGO TUNISIA ZAMBIA ZIMBABWE Public www.saudi-re.com#1300 000 0 000 0000000000.. 00000000s. 000000000 2021 Performance 00000 0.00000 Public 0000000 1000 0000 00 إعادة Saudi Re#1414 Value Drivers: 2021 At A Glance Saudi Re well geared for higher growth إعادة Saudi Re CAGR 19% strong growth momentum in 2018-2021 Reinsurance Company of the Year award 2021 A3 stable outlook credit rating by Moody' GWP 1.1 Billion Strong Competitive positon 10% capital increase by bonus shares Net profit SR 38.9 million UW Profit SR 71.6 million Investment Income SR 46.9 million SR 3.1 billion total assets Public www.saudi-re.com#1515 Competitive Ranking Growth Relative to Peers Middle East GWP Ranking USD M 2021 Best Re Trust Re 2010 371 302 Arig 240 IGI 179 Kuwait Re 119 ACR ReTakaful 118 Qatar Re 81 Hannover ReTakaful 80 CCR 78 Emirates Re 58 Arab Re 54 Tunis Re 51 Takaful Re 36 Gulf Re 35 Saudi Re 29 Oman Re 17 Public إعادة Saudi Re Saudi Re 297 CCR 285 SCR 280 Kuwait Re 249 Hannover Re* 143 Arab Re* 60 Tunis Re 51 Arig Best Re ACR ReTakaful Takaful Re Gulf Re Not in operation Emirates Re *2020 www.saudi-re.com#16Underwriting Portfolio Overview Diversified Growth إعادة Saudi Re SAR, MM Gross Written Premium (GWP) Portfolio Mix - Line of Business, 2021 1,116 986 935 Others 15% 942 805 792 482 721 346 556 507 Speciality 16% Engineering 8% Fire 22% 702 322 420 519 288 279 245 160 221 588 633 107 435 433 470 51 147 Health 12% 3 277 285 283 124 198 431 86 98 Protection 36 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 International ■KSA 4% General Accident 4% Marine 10% Motor 9% Total Assets 2,195 2,081 1,932 1,730 1,129 1,196 1,256 1,287 1,036 3,117 2,808 2,629 2,654 2,459 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 16 Public Portfolio Mix - Geographical, 2021 Asia 29% Other 16% KSA 43% Africa ME 4% 8% www.saudi-re.com#1717 Financial YOY Comparison Sustainable profitability إعادة Saudi Re SAR'000 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 Gross premiums written 1,115,879 Net premiums written 958,968 Net premiums earned Net Claims Incurred Premium Deficiency reserve Net Acquisition Costs Net underwriting results Policyholder net investment income Other income 935,114 792,848 772,639 646,605 854,730 647,121 642,535 (565,312) (391,980) (417,070) 721,605 942,007 985,510 616,896 636,921 938,184 613,615 595,833 1,131,098 (404,054) (19,114) (908,631) 0 (217,792) 71,626 3,976 (185,992) (158,221) 69,149 3,674 (158,001) (139,578) (166,638) 67,244 51,560 37,141 55,829 9,139 4,936 5,397 4,212 730 228 4 1,075 922 Underwriting - General and administrative expenses (50,620) (38,729) (41,203) (42,788) (39,970) (49,933) Net surplus/(deficit) from reinsurance operations 25,712 34,322 35,179 13,713 3,643 11,030 Shareholder net investment income Other income Shareholders' - General and administrative expenses 42,969 33,765 36,341 9,702 46,465 19,964 379 6,485 1,000.00 904.85 0 (13,174) (10,447) (9,684) (9,224) (10,856) (11,427) Zakat & Tax Provision Net income/(Loss) for the period Other comprehensive loss 55,886 64,124 62,836 15,095 39,252 19,567 (15,005) (14,774) (13,873) (12,865) (13,434) (15,300) (2,124) 2,191 (3,021) 3,036 (1,962) 0 Policyholder surplus transfer Total comprehensive (Loss)/Income - Shareholders (2,571) (3,432) (3,518) (1,371) (364) (1,103) 36,186 48,109 42,423 3,895 23,492 3,164 Public www.saudi-re.com#18Key Operational Ratios Sustainable Performance إعادة Saudi Re 2021 2020 2019 2018 2017 2016 31-Dec-21 31-Dec-20 31-Dec-19 31-Dec-18 31-Dec-17 31-Dec-16 Premium Growth 19% 18% 10% -23% -4% 22% Retention Ratio 85.9% 83% 82% 85% 68% 95% Net Claims Ratio 66.1% 61% 65% 66% 70% 80% Net Acquisition cost ratio 25.5% 29% 25% 26% 23% 15% Technical Ratio 91.6% 89% 90% 92% 94% 95% G&A Expense Ratio 7.46% 8% 8% 8% 9% 5% Combined Ratio 99.1% 97% 97% 100% 102% 100% 18 Public www.saudi-re.com#1919 Investments Composition Comparison and Performance Breakdown Shareholders' Funds Total Portfolio (SAR m) Policyholders' Funds Total Portfolio (SAR m) إعادة Saudi Re 560.2 920.2 874 870 821 824 98.3 370 163.9 338 143 147 122 126.5 295 0 57 204 70 91.6 0 241 104 0 0 68 174 317 54 436.4 300 445 53 261 125 461.9 370 337.7 502.9 406 241 188 228.3 2017 2018 2019 2020 2021 ■Money Market Fixed Income Global Equities GCC/Saudi Equities Others Return 2021 SAR (000,) % Probitas 17,228 13.69 2017 2018 2019 2020 2021 Money Market ■Fixed Income Return 2021 SAR (000') % RE 4,568 20.66 Fixed Income 40 0.00 GCC/Saudi Equity 6,426 13 Global Equity 0 0 Fixed Income 12,731 3.56 Money Market 4,616 1.07 Money Market 6,361 1.92 Total 47,073 5.27 Total 4,656 1.07 Public www.saudi-re.com#2020 International Expansion Strategic Investment Probitas Holdings Bermuda Ltd. (PHBL) Acquisition ■ In 2017, Acquired 49.9% of PHBL ordinary shares. ■ Transaction Value: USD 25 M. ■ Additional Capital injection: USD 1M. Probitas Holdings (Bermuda) Limited via its wholly owned subsidiary Probitas Corporate Capital Limited invests in Probitas Syndicate 1492, which is a syndicate at Lloyd's of London specialising in property, construction and casualty (re)insurance solutions. GWP, USD M 1492 PROBITAS إعادة Saudi Re 227.5 176.34 169.7 163.76 146.55 2017 2018 2019 2020 2021 15% 45% 40% Contractor All Risks, 5% Casualty International, 13% 41% 39% 102% 54% 54% 45% 40% Casualty UK, 16% 2017 2018 2019 2020 2021 Net Loss Ratio Expense Ratio Public Financial Lines, 25% Property, 41% www.saudi-re.com#2121 International Expansion Strategic Investment 1492 PROBITAS إعادة Saudi Re Top performing Lloyd's Syndicates By Combined Ratios Combined Ratio Profit/loss (£ m) GWP (£ m) 2020 2019 2020 2019 2020 2019 Chaucer 1176 38.8 27.7 18.6 22.0 29.4 98.1 Probitas 1492 85.6 94.4 17.9 7.8 144.8 133.8 Lancashire 3010 87.8 90.2 6.7 5.2 123.0 93.6 Ascot 1414 89.4 96.4 68.2 31.7 824.3 689.4 Aegis 1225 91.6 96.8 64.6 32.0 707.9 653.2 ERS 218 91.9 99.7 32.8 13.9 329.2 359.9 Ark 3902 92.5 90.1 6.5 8.6 126.6 89.5 Neline 1218 92.9 94.8 (6.9) 39.0 210.1 175.2 Arch 2012 93.1 90.6 13.0 22.4 293.9 223.9 Faraday 435 93.7 99.8 49.9 23.8 404.4 447.8 Atrium 0609 94.0 91.0 58.2 70.3 632.7 590.7 MAP 2791 94.0 75.3 24.5 51.5 313.5 224.0 Public www.saudi-re.com#2222 Inherent Defects Insurance (IDI) A Key Driver for Growth and Sustainable Profitability إعادة Saudi Re IDI implementation is not enforced enough as the Saudi Building Code had hindered new developments MOMRA has now delayed the requirement for IDI policies, and to be aligned with the construction period instead of the building permit. 1. Deed of Ownership 2. Survey Report (from a certified survey engineer) 3. A contract with a certified design engineer 6. Issuance of an IDI Policy (THIS STEP HAS BEEN DELAYED) 5. A contract from a certified contractor (THIS STEP HAS BEEN DELAYED) 4. A contract with TIS (THIS STEP HAS BEEN DELAYED) Source: Construction Permits data from MOMRA Public www.saudi-re.com#2323 Inherent Defects Insurance (IDI) A Key Driver for Growth and Sustainable Profitability إعادة Saudi Re Background ■ Mandated by the Council of Ministers Resolution No. 509 issued on June 5, 2018 requiring all contractors involved in private sector construction projects to obtain an IDI policy. Model ■ SAMA issued in March 2020 a standard policy wording for the IDI specifying a duration of 10 years for the cover. Link ■ SAMA approved Malath to lead the program on behalf of the market for 5 year. ■ Saudi Re was assigned to exclusively provide the reinsurance protection to the program for a period of 5 years. Construction Permits Premium Insured Malath (Program Leader) Saudi Re Technical Inspection Services Coinsurance Program (13 Insurers) (Lead Reinsurer) Retrocession Market Client Insurer Reinsurer Claims 145.7 129.35 129.32 113.52 103.85 86.95 87.88 2014 2015 Source: Construction Permits data from MOMRA 2016 2017 2018 2019 2020 Thousands Public www.saudi-re.com#2424 Inherent Defects Insurance (IDI) A Key Driver for Growth and Sustainable Profitability إعادة Saudi Re Design Phase Provide underwriting info (general drawings, sum insured, ground report) 2 Construction Phase Notify eventual construction changes 3 Practical completion Provide completion certificates, confirm final construction costs Client Start of construction Policy issue End of construction Insurer Review information provided & submit quotation Review eventual risk changes TIS appointment/risk apraisal Policy: Deposit Premium TIS site inspection from start of works Confirm conditions, adjust premium on final constructin cost & issue policy Source: Construction Permits data from MOMRA Procurement Process Timeline IDI Policy Final Premium TIS final report 10 year IDI Cover Public www.saudi-re.com#2500 000 0 000 0000000000.. 00000000s. 000000000 Key Developments 00000 0.00000 Public 0000000 1000 0000 00 إعادة Saudi Re#2626 Capital Increase - 2022 Recommended Rights Issue boosts capital by 50% إعادة Saudi Re Saudi Re - Recommended Rights Issue SR 445.5M boosts equity by 50% to SR 1,336 International Diversification Credit Rating: 1. Rights issue paves 1. Preemptive capital hike ahead of the Underwriting growth (domestically): 1. SAMA's reinforced compulsory cessation rates 2. Strengthening Macro outlook in 2. KSA 3. Significant changes to regional reinsurance capacity Probitas call option expiry in 2023 Compliance with European S&P solvency constraints the way for possible credit rating upgrades (latest rating action: A3 by Moody's) Public www.saudi-re.com#2727 Capital Increase - 2022 Proposed rights issue boosts capital by 50% ahead of peak GWP growth and valuations All time high GWPs إعادة Saudi Re Turnaround to profitability sustained SAR M 556M 420M 245M 160M 107M 51M 1,116M 986M 201% 942M 935M 189% 805M 793M 722M Net Loss Ratio 146% 114% 105% 92% 101% 100% 103% 100% 97% 96% 99% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Promising Growth Opportunities 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Valuation: Offers nice discount to TERP 30% 23.1% 27.1% 20% 10% 0% -10% -20% 2010 14.2% 9.6% 6.8% 1.5% 1.3% 2011 2012 2013 2014 I GDP (y/y growth) -13.5% -1.4% 0.30% 20.3% 0.25% 13.1 13.1 13.4 0.20% 4.0% 10.6 0.8% 9.9 9.9 0.15% 0.10% 0.05% -11.7% 0.00% 2015 2016 2017 2018 2019 Insurance Spend (GWPS/GDP) Public 9.7 8.6 8.0 8.5 6.8 7.2 16.6 17.1 13.8 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 www.saudi-re.com#28IFRS 17 - Update 0 00000 Public ....... 1000 .... 00 إعادة Saudi Re#2929 2021 Financials "Note # 3" Overview إعادة Saudi Re ■This standard has been published on May 18, 2017, it establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 - Insurance contracts. ■ The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts: i) embedded derivatives, if they meet specified criteria; ii) distinct investment components; and certain iii) any promise to transfer distinct goods or non- insurance services. These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). ■ IFRS 17 is a new accounting standard for (re)insurers that will be applicable to financial reporting periods beginning 1 January 2023. IFRS 17 is a significant development in accounting that will have a fundamental impact on the methodology, process, systems and results. ■ The new accounting standard will require a new approach to the measurement, reporting and disclosure of profitability for insurance and reinsurance contracts. Public www.saudi-re.com#3030 IFRS 17 Awareness Measurement Models Definitions إعادة Saudi Re There are three measurement models under IFRS 17: 1. 2. 3. General model (GM): Default model for all (re)insurance contracts Premium allocation approach (PAA): optional for short term contract with little variability. Variable fee approach: to deal with business where the payment to insured are linked to the underling items, e.g. assets. ■ Risk adjustment: reflects the compensation that Saudi Re requires for non-financial risks that are present in the contracts sold, ■ ☐ Discounting: adjusts the estimates of future cash flows to reflect the time value of money and the financial risks related to those cash flows, to the extent that the financial risks are not included in the estimates of cash flows. Expected value of future cash flows: An entity estimates future cash flows for insurance contracts based on the expected value of the full range of possible outcomes. Contractual service margin: Represents the unearned profit under the contract, i.e. the amount the entity expects to be compensated for providing insurance service. Public www.saudi-re.com#3131 IFRS17 Awareness Measurement Model for Non Life (Re)insurers إعادة Saudi Re Current IFRS General Model Expired Risk Risk adjustment Discounting New IFRS (17) PAA Risk adjustment Discounting Claim Reserve Expected value of future cash flows Expected value of future cash flows Contractual service margin Unexpired Risk Uneared Premuim Reserve less Deffered Aquastion Cost Discounting Expected value of future cash flows Risk adjustment Premium (less acquisition costs) unearned Public www.saudi-re.com#3232 IFRS17 Awareness Transition Comparative إعادة Saudi Re • Retrospective Approach: IFRS 17 is applied retrospectively to all contracts in-force at the transition date unless it is impracticable to do So. In this case either of the below approaches can be adopted: • Modified retrospective Approach: it is a modifications to full retrospective application. Fair value approach: uses the fair value of the contracts at the date of transition to determine a value for the contractual service margin ('CSM'). • IFRSS require an entity to present one year of comparative information., therefore, 2022 financial will be presented as a comparative information. IAS 8 requires entities to provide disclosures about the effect of applying IFRS 17 in the periods before IFRS 17's mandatory effective date. Therefore, Saudi Re discloses in its financial statement the effect of applying IFRS 17. Public www.saudi-re.com#3333 IFRS17 Awareness Saudi Re's IFRS17 Program Timeline Program Mobilization 2018 Impact assessment Completed Q1 2019 Design Complete technical policy, data assessment and vendor selection by end of Q4 2020 Solution development and build Complete by end of Q3 2021 Parallel run initiation Start Q2 2022 إعادة Saudi Re Go live Business as usual --2019 Q1 Q4-2020--- Q1 Q4 -2021- Q1 Q3 Q4--2022- Q2 Q1 Q4 ---2023--- Q1 Phase 1 Phase 2 Financial Impact Assessment Complete Financial Impact Assessment by end of Q1 2020 Phase 3 Phase 4 Parallel run - refine and iterate Design and business requirements ready Start Q3 2022 Testing Complete by end of Q1 2021 Complete by Q4 2021 Public Parallel run - final Commence final parallel run at Q4 2022 Business as usual www.saudi-re.com#34Business and Market Update 0 00000 1000 .... 00 Public إعادة Saudi Re#3535 - Key Developments - 2021 Review Market conditions paint a brightening UW outlook 2019 2020 P&C GWPS -Cession 2021 B 50 J إعادة Saudi Re 2019. 2020 2021 Saudi Re (KSA GWPS, SAR bn) Market Share Signs for market hardening globally as a reaction to losses e.g. Covid 19, which can affect capacity deployment and increase reinsurance pricing. Local market indicates new trend in new lines and compulsory insurance enforcement, e.g. Motor TPL, Inherent Defects, Employers Default Liability, Event Cancelation Liability, Drones Liability, Covid-19 Travel Insurance, and Domestic Helpers Insurance, Third Party Liability on High Risks and Crowded Sites, Self Driven Motor Insurance Approval of the classifications of risks which will be mandated to have a third party liability on properties. Not Enough Enforcement of IDI implementation with system infrastructure still being optimized Amendment of Cooperative Insurance Control Law. "Draft" Reinforced compulsory cessation rates to 15% by YE 2022e and 30% by YE 2025e Public www.saudi-re.com#3636 Financial Strength Rating Reflecting Competitive Advantages and Solid Financial Position إعادة Saudi Re تصنيف TASSNIEF وكالة سمة SIMAH RATING MOODY'S A3 Stable The A3 IFSR of Saudi Re reflects its: (i) strong brand and market position in Saudi Arabia as the sole Saudi professional reinsurer as well as a growing presence in its target markets of Asia, Africa and Lloyd's, (ii) Preferential position in Saudi market due to a right of first refusal on a portion of premiums ceded by primary carriers in the Saudi market, (iii) Strong asset quality exemplified by its conservative investment portfolio, (iv) Good capital adequacy, both in terms of capital levels, with gross underwriting leverage (GUL) of 2.1x and relatively modest exposure to natural catastrophe risk, and (v) Strong financial flexibility with nonexistent leverage and good access to capital markets in Saudi Arabia given its listing on the Saudi stock exchange, and broad investor base. Moody's report on Saudi Re dated 9th Dec 2021, > Link to the Announcement AA+ Stable According to Tassnief,, the rating of Saudi Re reflects its strong brand strength, risk profile & competitive advantage in the KSA market and incorporates the strength of the business profile having a well-established franchise in the key targeted markets that the company operates in, as well as the improved level of diversification for the international business. The rating also incorporates the Company's leverage free balance sheet, strong risk adjusted capitalization levels, healthy liquidity buffers and improving underwriting performance. The rating is also underpinned by Saudi Re's strong corporate governance framework and sound risk management practices. The report also noted improving operating environment due to better pricing dynamics (market hardening after a lengthy soft cycle) particularly for loss making segments. * Tassniefs report on Saudi Re dated 28th November 2021 > link to the Announcement Public www.saudi-re.com#3737 ESG Framework Sustainability Framework ■ Saudi Re sustainability framework has been developed in line with national and international strategic visions and objectives such as the Kingdom of Saudi Arabia Vision 2030, the National Sustainability Standards, the GRI Standards, and the United Nations Sustainable Development Goals (UNSDGs). Talent development Diversity and inclusion Health and wellbeing Community investment People and Community Care Integrating ESG in Sustainable Insurance insurance - Investing responsibly Accoco to insurance Climate change and energy transition Environmental management ■ The framework builds on six pillars: national contribution, strong governance and economic performance, responsible customer relations, environmental protection, insurance, and community care. sustainable Public Influence on stakeholder assessment and decisions 4 Significance of impacts 11 '60 10 12 Important National Contribution إعادة Saudi Re Environmental Protection More important Most important إعادة Saudi Re Strong Governance and Economic Performance Serving the national strategy Sustainable procurement Corporate Governance Ethico and Compliance Financial Performance Responsible Customer Relations Material Topic Corporate Governance ☐ Data protection and cyber security Customer satisfaction. Innovation and digitalization Sustainable products and services Rank 1 Data protection and cybercecurity 2 Talent development 3 Serving the national strategy 4 Climate change and energy transition 5 Ethico and compliance 6 Financial performance 7 Customer satisfaction 8 Divercity and inclucion 9 Integrating ESG in insurance 10 Innovation and digitalization 11 Investing responsibly 12 Acceco to insurance 13 Sustainable products and services 14 Community investment 15 Health and wellbeing Environmental management Sustainable procurement 16 17 18 www.saudi-re.com#3838 Shariyah Compliant Shariyah Review Bureau إعادة Saudi Re 5 المراجعة الشرعية SHARIYAH REVIEW BUREAU Tel-966 12 2253424 PO Box 40469, Jeddah 21499 -SAUDI ARABIA- Tel +97144096974 PO Box 124342, Dubai - UNITED ARAB EMIRATES- Tel +973 17:235898 PO Box 21051, Al Manama, -BAHRAIN- فضيلة الشيخ د. محمد على القرى Shaikh D. Muhammad Ali Elgari قضيلة الشيخ د.صالح فهد الشلهوب Shaikh D. Salah Fahad Alshalhoob SHARIKADVISOR LICENSED BY THECENTRALBANK OF BAHRAIN www.shariyah.com بسم الله الجن اللحمة شهادة اعتماد شرعي SHARI'A CERTIFICATE الحمد لله رب العالمين والصلاة والسلام على سيدنا محمد وعلى آله وصحبه أجمعين، وبعد هذه الشهادة تشكل إعلانا من قبل هيئة الرقابة الشرعية ("الهيئة") للشركة السعودية This certificate constitutes as a Pronouncement by The Shari'a Supervisory لإعادة التأمين التعاوني "الشركة". Board (SSB) in its capacity as the SSB of Saudl Cooperative Reinsurance Company "Company". Certificate No: SRE-1567-01-01-04-20-01 The authenticity of this certificate may be verified at http://Shariyah.com/track-certificates/ تمت عملية مراجعة أنشطة الشركة وعملياتها من أجل الحصول على جميع المعلومات The Company's activities and operations were reviewed in order to obtain all والتفسيرات التي اعتبرناها ضرورية لتزويدنا بأدلة تكفي لإعطاء تأكيد معقول بأن information and explanations that we considered necessary to provide us الشركة لم تخالف الضوابط والمعايير الشرعية. This certificate endorses the mentioned product componenets only. Proper implementaion thereof is the sole responsibility of the end-user. Attention is drawn to the limitations, indemnifications and jurisdictional issues established in the Disclaimer at the back of this Certificate. Any unauthorized alteration, forgery or the falsification of the contentorthe appearance of this Certificate is considered unlawful and offenders may be persecuted to the fullest extent of the law. with sufficient evidence to ensure the Company did not breach the SSB guidelines. بناء على عملية المراجعة المنفذة وبعد الأخذ بالاعتبار جميع الملاحظات والتوصيات Based on our review and taking into consideration the recommendations set التي أقرتها الهيئة في شهادة الاعتماد الشرعي الأساسية (" الشهادة الأساسية") out by the SSB in the Maln Sharia certificate ("Main Certificate") holding والتي تحمل الرقم التسلسلي: -200-04-01-01-1567-SRE ، فإن المؤشرات الناتجة reference code: SRE-1567-01-01-04-20, it is our opinion that the reviewed عن هذه المراجعة تبين أن عمليات وأنشطة الشركة تمارس وفقا للضوابط والمعايير transactions and business activities are in compliance with the Sharia rules الشرعية التي أقرتها الهيئة للشركة، تجدر الإشارة إلى أن هذه الشهادة هي جزء لا principles, and guidelines. This Shari'a Certificate should be read in يتجزء من الشهادة الأساسية حيث يجب أن تقرأ معها بما تتضمنه من المعلومات conjunction with the information entailed in the Maln certificate Further, this Certificate is constituted as an integral part of the Shari'a Certificate. الواردة فيها. سوف تتولى دار المراجعة الشرعية بالنيابة عن الهيئة مسؤولية الرقابة والمراجعة على SRB will lead the supervision and monitoring of the company's transactions عمليات الشركة من الناحية الشرعية، بالإضافة إلى التدقيق الشرعي من أجل تقييم from a Sharia perspective on behalf of the SSB. It will also engage in the التزام الشركة مع السياسات والإجراءات الشرعية والمبادئ التوجيهية والإبلاغ عن أي Sharia Audit to investigate and evaluate the extent of the Company's adherence with directed Shari'a policies and report any defective processes. التطبيق. خلل في لا تعد صلاحية هذه الشهادة دائمة مدى الحياة، وبقاء صلاحيتها مشروط بإجراء عملية This Certificate's legitimacy does not constitute "lifetime validation' and التدقيق الشرعي الدوري وإصدار تقرير سنوي بنتائج تلك العملية، وتعد الشهادة منتهية remains valid subject to satisfactory periodical Sharia Audits and the الصلاحية في حال عدم صدور هذا التقرير. معتمد الاعتقال الشرة يمكن الاطلاع على الشهادة الرئيسية عبر زيارة الموقع أدناه ولا مال كوم الرئيسية في محرك البحث https://sharivah.com/track-certificates/ والله ولي التوفيق دار المراجعة الشرعية 22 ذو الحجة 1441 issuance of a Shan'a compliance report every year. SRB's approval entailed in this Certificate will automatically end should such Shari'a compliance report cease to be issued. *The main certificate can be viewed by visiting the website below and entering the main certificate code number in the search engine https://shariyah.com/track-certificates/ Allah is the Guide to Success. Shariyah Review Bureau 12th August 2020 ربي المراجعة 本 ٥٦٢٢١ المناعة BUREAU SHARIYAH Public www.saudi-re.com#39Thank you Investor Relations: Ahmad Al-Daham Assistant Manager - Investor Relations & Sustainability. [email protected] +966 11 510 2181 +966 11 510 2000 Saudi Re IR App IOS Android Public إعادة Saudi Re