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Governance: A

JAZIRA TAKAFUL

JAZIRA TAKAFUL

11.15 SAR / Share

As of: May 28, 2026

23.6x P/E Ratio Trailing 12 Months
0.7x P/B Ratio Price to Book Value
2.7% Dividend Yield Annual Dividend / Share
735.90M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
31.7% Net Margin Net Profit / Revenue

Company Profile

AlJazira Takaful Taawuni Company is a Saudi Joint Stock Company licensed to provide insurance and related services in Saudi Arabia. The company offers a diverse range of products including protection and saving, general insurance (Motor, Property & Casualty, Marine, Engineering), and health insurance. It operates through branches in Riyadh and AlKhobar, with headquarters in Jeddah. Regulated by the Insurance Authority (IA), following the transition from SAMA, the company maintains three primary business segments: Non-life, Individual life (including unit-linked investment-oriented products), and Group life. The company is owned 98.78% by Saudi shareholders and the general public, with Bank AlJazira acting as a founding shareholder with significant influence.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-14)
Shares Outstanding 66.00M
Market Cap 735.90M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Jazira Takaful operates as a highly capitalized, Shariah-compliant insurer in Saudi Arabia, balancing disciplined underwriting with a massive investment portfolio.

Source: Q1 2026 (2026-05-14)

Value Creation -5.6% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)
Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price
2.7%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+2.2%
Payout Ratio Percent of net profits distributed as dividends
63.5%
Net Margin Net profit margin generated from total operational revenue
31.7%
ROE Return on Equity
3.1%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
23.6x
P/B Ratio Market capitalization compared to corporate book value
0.7x
Combined Ratio Operating multiple reflecting core operational leverage
90.6%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Jazira Takaful's growth trajectory reflects a highly selective underwriting strategy rather than aggressive market expansion. The company recorded TTM Insurance Revenue of SAR 376M alongside Gross Written Premiums (GWP) of SAR 116M, indicating a specialized or structured portfolio. This measured top-line expansion is mirrored in its sustainable growth rate of 2.16%, which is constrained by a modest Return on Equity (ROE) of 3.07% and a high payout ratio of 63.48%. The company's growth story is one of deliberate, low-velocity expansion, prioritizing capital preservation and steady market positioning over rapid market share acquisition.

Profitability Dynamics

Profitability at Jazira Takaful is characterized by strong underwriting discipline but low overall capital efficiency. The company achieved an impressive Combined Ratio of 90.62% for the TTM period, demonstrating that its core underwriting activities are fundamentally profitable. However, despite this technical efficiency, the company's ROE stands at just 3.07%, which significantly trails its estimated Cost of Equity (Ke) of 8.70%. This gap indicates that while underwriting is disciplined, the massive equity base of SAR 1.0B is not yet fully optimized to generate returns above the hurdle rate, leaving the company reliant on its SAR 2.4B investment portfolio to bolster net income, which reached SAR 31M.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index
1.00
Cost of Equity Minimum required rate of return demanded by shareholders
8.7%
Combined Ratio Underwriting cost efficiency margin (Claims + Expenses) / NEP
90.6%
Loss Ratio Net claims incurred relative to net earned premiums
—
Expense Ratio Acquisition and general admin costs relative to net earned premiums
—
Retention Ratio Proportion of gross written premium retained by company
92.1%

Risk Factors

From a risk perspective, Jazira Takaful operates with an exceptionally robust balance sheet, resembling a financial fortress. With Total Assets of SAR 3.1B and Total Equity of SAR 1.0B, the company maintains a massive capital cushion relative to its Insurance Contract Liabilities of SAR 2.0B. This capital surplus provides a substantial buffer against underwriting volatility and ensures strong compliance with SAMA's solvency requirements. The primary risk is not solvency or liquidity, but rather the opportunity cost of underutilized capital, as the company's low sustainable growth rate of 2.16% and low ROE highlight the challenge of deploying its extensive resources into high-yielding insurance lines.

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