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MALATH INSURANCE

MALATH INSURANCE

8.55 SAR / Share

As of: May 28, 2026

24.7x P/E Ratio Trailing 12 Months
0.9x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
427.50M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
5.8% Net Margin Net Profit / Revenue

Company Profile

Malath Cooperative Insurance Company is a Saudi Joint Stock Company established in 2007 and licensed by the Insurance Authority (formerly SAMA) to transact insurance and related activities in Saudi Arabia. Its principal lines of business include medical, motor, marine, property, engineering, casualty, and other general insurance. The Company operates a cooperative model where shareholders receive 90% of the annual surplus and policyholders receive 10%. Malath recently explored a potential merger with Liva Insurance Company, but the Memorandum of Understanding expired without a binding agreement in March 2026.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-12)
Shares Outstanding 50.00M
Market Cap 427.50M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Malath Insurance operates on a thin margin of underwriting profitability, balancing SAR 1.4B in TTM insurance revenue against high operational and claim costs.

Source: Q1 2026 (2026-05-12)

Value Creation -5.0% 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
—
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+12.4%
Payout Ratio Percent of net profits distributed as dividends
—
Net Margin Net profit margin generated from total operational revenue
5.8%
ROE Return on Equity
3.7%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
24.7x
P/B Ratio Market capitalization compared to corporate book value
0.9x
Combined Ratio Operating multiple reflecting core operational leverage
99.8%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Anchored in the metaphor of 'The Broadening Footprint,' Malath Insurance has established a substantial top-line presence in the Kingdom, evidenced by TTM Insurance Revenue of SAR 1.4B and Gross Written Premiums (GWP) of SAR 261M. This premium growth trajectory reflects the company's active market positioning. However, translating this market penetration into sustainable growth remains a challenge. While the calculated sustainable growth rate stands at 12.42%, the underlying sustainable ROE of 1.85% indicates that long-term expansion is highly sensitive to premium retention and operational efficiency, requiring a careful balance between volume and quality.

Profitability Dynamics

Under the metaphor of 'The Razor's Edge,' Malath's profitability story is defined by extremely tight underwriting margins. The company's Combined Ratio of 99.84% indicates that claims and expenses consume nearly all of its insurance revenue, leaving a minimal underwriting surplus. Consequently, the Return on Equity (ROE) of 3.70% falls well below the Cost of Equity (Ke) of 8.70%, demonstrating that the company is currently not meeting its shareholders' opportunity cost of capital. This thin margin places a heavy reliance on the investment income generated from its SAR 265M investment asset base to keep net income positive at SAR 17M.

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
99.8%
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
80.9%

Risk Factors

Represented by the metaphor of 'The Shield and the Anchor,' Malath's risk profile is anchored by its balance sheet strength, with Total Assets of SAR 1.1B and Total Equity of SAR 467M. The company's Insurance Contract Liabilities stand at SAR 545M, representing its primary financial commitment. Operating within the stringent SAMA regulatory framework, Malath must maintain adequate solvency margins. The primary risk lies in underwriting volatility; with a combined ratio so close to 100%, any adverse deviation in claim frequency or severity directly threatens capital adequacy, highlighting the critical importance of robust reinsurance arrangements and strict risk selection.

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