ACIG
ACIG
As of: May 28, 2026
Company Profile
Allied Cooperative Insurance Group (ACIG) is a Saudi Joint Stock Company incorporated in 2007, transacting cooperative insurance operations in the Kingdom of Saudi Arabia. The company is licensed by the Saudi Central Bank (SAMA) and listed on Tadawul. As of March 31, 2026, the company operates across Medical, Motor, and Property/Accident lines of business. ACIG is currently addressing significant financial challenges, including a failure to meet prudential solvency margin requirements and accumulated losses reaching 51.97% of its share capital. To remedy this, management has implemented a five-year plan focused on digital expansion, investment diversification, and product optimization, while seeking regulatory approval for a capital increase to meet SAMA's minimum capital requirements of SAR 300 million.
The Story
ACIG is a mid-sized Saudi insurer striving to stabilize its underwriting operations amidst significant profitability pressures and capital erosion.
Source: Q1 2026 (2026-05-12)
Performance & Distributions
Market Pricing Multiples
Growth Story
ACIG's top-line performance shows a divergence between its TTM Insurance Revenue of SAR 1.1B and Gross Written Premiums of SAR 266M, reflecting the transition in accounting treatments and premium recognition under IFRS 17. While the top-line scale remains substantial for a cooperative insurer, the company's capacity for sustainable growth is severely constrained. With a negative return on equity of -35.60% and a sustainable growth rate of 2.08% (with a sustainable ROE of -17.80%), ACIG's ability to organically fund market expansion and increase its market penetration in the competitive Saudi insurance sector is limited, requiring a strategic focus on capital preservation over aggressive volume growth.
Profitability Dynamics
The profitability profile of ACIG is characterized by underwriting strain and capital erosion. The company's combined ratio stands at 102.71%, indicating that underwriting claims and expenses exceed earned premiums, leading to an underwriting loss. This operational deficit, combined with a net loss of SAR -73M, has driven the return on equity down to -35.60%. This performance falls significantly short of the company's cost of equity of 8.70% (derived from a beta of 1.0038), highlighting a substantial gap in value creation. While the investment portfolio of SAR 516M provides some liquidity and investment income, it has been insufficient to offset the core underwriting losses.
Risk & Capital Structure
Risk Factors
ACIG's risk profile is heightened by its weakened capital base and substantial liabilities. Total equity has contracted to SAR 205M against total assets of SAR 947M, putting pressure on solvency margins under SAMA's regulatory framework. The company carries SAR 666M in insurance contract liabilities, which represents the bulk of its obligations. Managing these liabilities requires robust reinsurance arrangements and disciplined reserving. Given the negative net income of SAR -73M, maintaining adequate capital buffers to meet SAMA's solvency requirements remains a critical operational risk, necessitating strict underwriting discipline to prevent further capital depletion.
Research Report
Read our independent analysis →Explore ACIG's Full Profile
Usool Research tracks ACIG's financials, governance disclosures, valuation metrics, and more. Structured and updated from every filing.
Start Exploring → Sign up free and explore the data.