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8120
Governance: A

GULF UNION ALAHLIA

GULF UNION ALAHLIA

11.78 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months
0.9x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
540.64M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
-16.4% Net Margin Net Profit / Revenue

Company Profile

Gulf Union Alahlia Cooperative Insurance Company is a Saudi joint stock company based in Dammam, specializing in cooperative insurance operations. Its principal lines of business include medical, motor, general accident and liability, engineering, property, marine, and protection insurance. The company resulted from a merger with Al Ahlia Cooperative Insurance Company and is licensed by the Insurance Authority (formerly SAMA) to transact insurance business in the Kingdom of Saudi Arabia. It operates through three regional branches in Dammam, Jeddah, and Riyadh, as well as various point-of-sale stores. The company participates in significant industry-wide insurance pools, including the compulsory Umrah & Hajj scheme (managed with CCI), the Inherent Defects Insurance (IDI) program (formerly managed by Malath, now Tawuniya), and a mandatory insurance product for non-Saudi employees in the private sector (managed with Al-Etihad/Tawuniya). It is subject to regulatory oversight by SAMA and maintains a statutory deposit equivalent to 15% of its paid-up capital.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-11)
Shares Outstanding 45.89M
Market Cap 540.64M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Gulf Union Alahlia is a mid-sized Saudi insurer striving to stabilize its underwriting operations amidst persistent net losses and elevated combined ratios.

Source: Q1 2026 (2026-05-11)

Value Creation -15.6% 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
-16.4%
ROE Return on Equity
-6.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
—
P/B Ratio Market capitalization compared to corporate book value
0.9x
Combined Ratio Operating multiple reflecting core operational leverage
104.3%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Gulf Union Alahlia demonstrates a significant scale of operations with TTM Insurance Revenue reaching SAR 1.0B, alongside Gross Written Premiums (GWP) of SAR 196M. However, translating this top-line presence into sustainable expansion remains a challenge. The company's sustainable growth rate is estimated at 2.08%, while its sustainable ROE stands at -3.44%. This divergence highlights the difficulty of funding organic growth internally when underwriting activities are not generating positive net surpluses, limiting the company's ability to expand its market share in the competitive Saudi insurance landscape without capital strain.

Profitability Dynamics

Profitability remains under pressure as evidenced by a Combined Ratio of 104.33%, indicating that underwriting claims and expenses exceed premium revenues. This underwriting deficit has contributed to a Net Income TTM of SAR -39M and a negative Return on Equity (ROE) of -6.89%. When compared to the company's Cost of Equity (Ke) of 8.70%, which is based on a Beta of 1.0038, Gulf Union Alahlia is currently experiencing a negative economic spread, failing to meet its equity investors' required rate of return. While the company maintains an investment portfolio of SAR 502M, the investment income generated has been insufficient 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
104.3%
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
85.8%

Risk Factors

From a risk perspective, Gulf Union Alahlia manages a balance sheet with Total Assets of SAR 1.2B and Total Equity of SAR 573M. The company's insurance contract liabilities stand at SAR 525M, representing a significant portion of its obligations. Operating within the stringent regulatory framework of the Saudi Central Bank (SAMA), maintaining capital adequacy and solvency margins is paramount, especially given the current net losses. The lack of positive underwriting cash flows places a heavier reliance on the company's investment assets of SAR 502M to back these liabilities, highlighting the critical need for disciplined risk selection and robust reinsurance arrangements to protect the capital base from severe claims volatility.

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