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8040

Governance: A

MUTAKAMELA

8.56 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

0.7x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

513.60M SAR Market Cap Total Valuation

1.00 Beta Systematic Risk Index

-4.6% Net Margin Net Profit / Revenue

The Story

MUTAKAMELA is navigating a challenging operational phase where elevated administrative expenses offset underwriting revenues, resulting in a net loss and a combined ratio slightly above the breakeven threshold.

Source: Q1 2026 (2026-05-13)

Value Creation -10.0% 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

+2.1%

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

-1.3%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

0.7x

Combined Ratio Operating multiple reflecting core operational leverage

100.7%

Loss Ratio Asset pricing multiple relative to total topline revenue

59.1%

Growth Story

MUTAKAMELA's top-line performance is characterized by a divergence between its TTM Insurance Revenue of SAR 880M and Gross Written Premiums (GWP) of SAR 323M, reflecting the recognition of previously written business under IFRS 17. However, the company's capacity for sustainable growth is constrained by its negative return profile, with a sustainable growth rate of 2.08% and a sustainable ROE of -0.63%. Without positive earnings retention, expanding its market share in the competitive Saudi insurance sector remains a structural challenge, as capital cannot be organically compounded to support aggressive premium expansion.

Profitability Dynamics

The profitability narrative for MUTAKAMELA highlights an underwriting squeeze, evidenced by a combined ratio of 100.74%, which indicates that insurance operations are running at a slight loss. While the loss ratio is relatively controlled at 59.09%, the primary pressure point is the elevated expense ratio of 41.66%, pointing to high operational and acquisition costs. Consequently, the return on equity (ROE) stands at -1.26%, failing to meet the estimated cost of equity (Ke) of 8.70%. This negative spread demonstrates that current investment income from its SAR 754M portfolio is insufficient to offset underwriting deficits and generate economic value for shareholders.

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

100.7%

Loss Ratio Net claims incurred relative to net earned premiums

59.1%

Expense Ratio Acquisition and general admin costs relative to net earned premiums

41.7%

Retention Ratio Proportion of gross written premium retained by company

76.9%

Risk Factors

From a risk perspective, MUTAKAMELA maintains a substantial balance sheet with Total Assets of SAR 1.9B and Total Equity of SAR 714M, providing a buffer against operational volatility. However, the company carries significant insurance contract liabilities of SAR 919M, which must be continuously matched by its investment assets of SAR 754M and cash reserves. Operating under the strict regulatory oversight of the Saudi Central Bank (SAMA), the company must carefully manage its solvency margins, especially given the current net loss of SAR -9M. The lack of underwriting profitability increases reliance on reinsurance structures and capital preservation strategies to mitigate systemic underwriting shocks.

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