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8160

Governance: A

AICC

8.27 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

0.8x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

438.31M SAR Market Cap Total Valuation

1.00 Beta Systematic Risk Index

-26.1% Net Margin Net Profit / Revenue

The Story

AICC is currently navigating a challenging operational phase, where robust top-line insurance revenue of SAR 926M is offset by underwriting deficits and negative profitability.

Source: Q1 2026 (2026-05-11)

Value Creation -20.3% 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

-26.1%

ROE Return on Equity

-11.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

0.8x

Combined Ratio Operating multiple reflecting core operational leverage

103.1%

Loss Ratio Asset pricing multiple relative to total topline revenue

—

Growth Story

AICC demonstrates a significant divergence between its top-line volume and its underlying growth sustainability. The company generated SAR 926M in TTM insurance revenue, supported by gross written premiums (GWP) of SAR 287M. However, this premium volume has not translated into sustainable organic expansion. With a negative return on equity (ROE) of -11.58%, the company's sustainable growth rate is constrained at 2.08% (with a sustainable ROE of -5.79%), indicating that current premium growth is not backed by internal capital generation. This highlights a critical need to align market penetration and premium acquisition with capital efficiency.

Profitability Dynamics

Profitability remains the primary hurdle for AICC, as evidenced by a combined ratio of 103.13%, indicating that underwriting claims and expenses exceed earned premiums. This operational deficit directly drives the net loss of SAR -64M over the trailing twelve months (TTM). Consequently, the company's ROE stands at -11.58%, failing to meet its cost of equity (Ke) of 8.70%. This negative spread of -20.28% demonstrates that the company is currently eroding shareholder value, as investment income from its SAR 322M portfolio is insufficient to 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

103.1%

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

71.2%

Risk Factors

From a risk and balance sheet perspective, AICC holds total assets of SAR 1.2B, backed by SAR 556M in total equity. The company's risk profile is heavily tied to its insurance contract liabilities, which stand at SAR 527M, representing a substantial portion of its obligations. While the company maintains an investment book of SAR 322M to support these liabilities, the underwriting losses (combined ratio of 103.13%) place pressure on capital adequacy and solvency margins under SAMA regulations. Without positive earnings to replenish capital, maintaining regulatory solvency thresholds will require strict capital discipline or potential restructuring of reinsurance arrangements to mitigate underwriting volatility.

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