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8070
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ARABIAN SHIELD

ARABIAN SHIELD

11.70 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months
0.6x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
933.84M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
-11.4% Net Margin Net Profit / Revenue

Company Profile

Arabian Shield Cooperative Insurance Company is a Saudi Joint Stock Company listed on the Saudi Stock Exchange (Tadawul). The Company is licensed to conduct insurance business in general and medical classes, as well as protection and savings classes, regulated by the Insurance Authority (previously SAMA). Its principal lines of business include motor, medical, marine, property, engineering, casualty, and protection and savings. The Company has grown through strategic acquisitions, including the merger with Al Ahli Takaful Company (ATC) and the subsequent merger with Alinma Tokio Marine Company (ATMC) in 2023, the latter resulting in an increase of paid-up capital to 798,152,950 Saudi Riyals.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-11)
Shares Outstanding 79.81M
Market Cap 933.84M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Arabian Shield is navigating a challenging underwriting cycle, where robust top-line insurance revenue of SAR 1.8B is offset by elevated claims and operational costs, leading to a net loss of SAR 45M.

Source: Q1 2026 (2026-05-11)

Value Creation -11.5% 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
-11.4%
ROE Return on Equity
-2.8%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
—
P/B Ratio Market capitalization compared to corporate book value
0.6x
Combined Ratio Operating multiple reflecting core operational leverage
104.0%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Arabian Shield demonstrates a significant scale of operations with TTM Insurance Revenue reaching SAR 1.8B, supported by Gross Written Premiums (GWP) of SAR 1.3B. This top-line performance reflects a solid market presence within the Saudi insurance sector. However, the company's sustainable growth rate is constrained at 2.08%, with a sustainable ROE of -2.59%. The divergence between premium generation and bottom-line retention highlights the challenge of translating market penetration into self-sustaining capital growth, as current earnings do not fully support organic capital expansion without external support or underwriting adjustments.

Profitability Dynamics

Profitability remains under pressure as evidenced by a Combined Ratio of 103.96%, indicating that underwriting expenses and claims have exceeded earned premiums. This underwriting deficit has contributed to a Net Income of SAR -45M and a negative Return on Equity (ROE) of -2.77%. When compared to the company's Cost of Equity (Ke) of 8.70% (derived from a Beta of 1.0038), Arabian Shield is currently experiencing a capital-destroying spread. While the company's substantial investment portfolio of SAR 3.9B provides a critical stream of investment income, it has not been sufficient to fully offset the underwriting losses reflected in the elevated combined ratio.

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
104.0%
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
82.9%

Risk Factors

From a risk and balance sheet perspective, Arabian Shield manages a substantial asset base of SAR 5.9B, backed by SAR 1.6B in Total Equity. The company's risk profile is heavily anchored by Insurance Contract Liabilities of SAR 4.0B, representing its outstanding obligations to policyholders. To mitigate these underwriting exposures, the company relies on reinsurance arrangements and maintains a conservative investment allocation, with SAR 3.9B held in investment assets. Operating under the regulatory oversight of the Saudi Central Bank (SAMA), the company must continuously manage its solvency margins and capital adequacy to absorb underwriting volatility, particularly given the current net loss position.

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