Moody's assigned an A3 insurance financial strength rating to Saudi Re for Cooperative Reinsurance Co., with a stable outlook.

The agency said the rating reflects, among other things, Saudi Re's strong brand and market position in Saudi Arabia as the country's only professional reinsurer; increasing presence in target markets of Asia, Africa and Lloyd's; and its right of first refusal on certain premiums ceded by primary carriers in the Saudi market.

A stable outlook was assigned due to Moody's expectation that the reinsurer will preserve its recent improvements in profitability and maintain its strong asset quality, capital adequacy and adequate level of reserves.