SAICO
SAICO
As of: May 28, 2026
Company Profile
Saudi Arabian Cooperative Insurance Company (SAICO) is a Saudi Joint Stock Company listed on the Saudi Stock Exchange (Tadawul). The Company's objective is to transact cooperative insurance operations and related activities in the Kingdom of Saudi Arabia, with principal lines of business including all classes of general and medical insurance. SAICO operates under cooperative principles, where 90% of the annual surplus from insurance operations is distributed to shareholders and 10% to policy holders. Any deficit arising on insurance operations is borne by the shareholders in full. The Company maintains branches in Jeddah and Khobar and is regulated by the Insurance Authority (formerly SAMA).
The Story
SAICO operates as a mid-sized player in the Saudi insurance market, balancing a substantial premium volume against tight underwriting margins and modest equity returns.
Source: Q1 2026 (2026-05-12)
Performance & Distributions
Market Pricing Multiples
Growth Story
SAICO's top-line performance is characterized by a substantial gap between its TTM Insurance Revenue of SAR 1.2 billion and its Gross Written Premiums (GWP) of SAR 731 million, reflecting the timing and structure of its contract portfolio. While the top-line scale is significant, the company's capacity for sustainable growth is constrained. With a sustainable growth rate of 2.45% and a return on equity (ROE) of 4.91%, SAICO's internal capital generation limits its ability to aggressively expand its market share without external capital injections. The growth trajectory remains tied to its ability to optimize premium retention and expand its footprint in a highly competitive Saudi regulatory landscape.
Profitability Dynamics
Profitability at SAICO is highly sensitive to underwriting discipline, as evidenced by a combined ratio of 98.99% for the trailing twelve months. This extremely tight margin leaves less than 1% of premium revenue as pure underwriting profit before investment contributions. Consequently, the company's net income stands at SAR 21 million, translating to an ROE of 4.91%. This return falls short of its estimated cost of equity of 8.70% (derived from a beta of 1.0038), indicating that the company is currently not covering its opportunity cost of capital. With loss and expense ratios not individually disclosed, the overall profitability remains heavily reliant on maintaining this thin underwriting surplus and maximizing yields on its SAR 341 million investment book.
Risk & Capital Structure
Risk Factors
SAICO's risk profile is anchored by its balance sheet structure, where total assets of SAR 2.3 billion support insurance contract liabilities of SAR 1.6 billion. This high ratio of liabilities to equity of SAR 428 million underscores the importance of robust solvency and capital adequacy under SAMA's strict regulatory framework. Without detailed disclosure on reinsurance arrangements or retention ratios, the company's risk mitigation relies heavily on its liability valuation accuracy and the liquidity of its SAR 341 million investment portfolio. Any adverse deviation in claims or a sudden spike in underwriting losses could quickly pressure its thin capital buffer, making regulatory compliance and disciplined reserving critical priorities.
Research Report
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