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MEDGULF

MEDGULF

14.29 SAR / Share

As of: May 28, 2026

34.2x P/E Ratio Trailing 12 Months
1.2x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
1.97B SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
4.6% Net Margin Net Profit / Revenue

Company Profile

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (Medgulf) is a Saudi Joint Stock Company transacting in cooperative insurance and reinsurance business in the Kingdom of Saudi Arabia. Its principal lines of business include medical, motor, and other general insurance. The Company is listed on the Saudi Arabian Stock Exchange (Tadawul). In October 2025, the Company's Extraordinary General Meeting approved the acquisition of Buruj Cooperative Insurance Company by increasing share capital from SAR 1,050,000,000 to SAR 1,381,578,940 through the issuance of 33,157,894 ordinary shares. Medgulf maintains a statutory deposit with the Insurance Authority (formerly SAMA) at 13.57% of paid-up capital. As of March 31, 2026, the company's solvency coverage is 100.11%, which management noted is below the prudential solvency requirements.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-17)
Shares Outstanding 138.16M
Market Cap 1.97B
Enterprise Value —
Geographic Revenue
Major Customers

The Story

MEDGULF is a prominent Saudi insurer generating substantial top-line insurance revenue of SAR 4.6B, currently focusing on underwriting discipline to stabilize its bottom-line profitability.

Source: Q1 2026 (2026-05-17)

Value Creation -5.1% 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
+22.5%
Payout Ratio Percent of net profits distributed as dividends
—
Net Margin Net profit margin generated from total operational revenue
4.6%
ROE Return on Equity
3.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
34.2x
P/B Ratio Market capitalization compared to corporate book value
1.2x
Combined Ratio Operating multiple reflecting core operational leverage
98.4%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

MEDGULF demonstrates a significant market presence with an Insurance Revenue (TTM) of SAR 4.6B and Gross Written Premiums (GWP) of SAR 2.6B. This substantial top-line scale highlights the company's strong market penetration and brand recognition within the Saudi insurance sector. However, translating this premium volume into sustainable growth remains a key strategic challenge. The company's sustainable growth rate is recorded at 22.52%, while its sustainable ROE stands at 1.79%. This divergence suggests that while the company has the capacity for premium expansion, the retention of earnings and capital efficiency must be carefully managed to support long-term, self-funded growth without diluting existing equity.

Profitability Dynamics

Profitability at MEDGULF is characterized by thin underwriting margins, as evidenced by a Combined Ratio of 98.38% for the TTM period. This indicates that the vast majority of earned premiums are consumed by claims and operational expenses, leaving a narrow underwriting profit margin of 1.62%. Consequently, Net Income (TTM) stands at SAR 58M, yielding a Return on Equity (ROE) of 3.58%. When compared to the company's estimated Cost of Equity (Ke) of 8.70%, MEDGULF is currently operating below its hurdle rate, indicating that the company is not yet fully covering its cost of capital. To bridge this gap, the company relies on its SAR 1.3B investment portfolio to generate investment income, which acts as a crucial buffer to support overall net profitability while underwriting discipline is being reinforced.

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
98.4%
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
83.1%

Risk Factors

From a risk and balance sheet perspective, MEDGULF manages a substantial pool of risk, with Insurance Contract Liabilities standing at SAR 2.0B against Total Assets of SAR 3.8B. This leverage places a premium on robust capital adequacy and regulatory compliance under SAMA's oversight. The company's Total Equity of SAR 1.6B provides a foundational buffer, but the high ratio of insurance liabilities to equity underscores the importance of effective reinsurance arrangements to mitigate underwriting volatility. Furthermore, with an investment portfolio of SAR 1.3B, MEDGULF faces market and credit risks, requiring conservative asset allocation to ensure liquidity is readily available to meet policyholder obligations while maintaining regulatory solvency margins.

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