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Governance: B

ALETIHAD

ALETIHAD

5.83 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months
0.7x P/B Ratio Price to Book Value
10.3% Dividend Yield Annual Dividend / Share
291.50M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
-90.3% Net Margin Net Profit / Revenue

Company Profile

Al-Etihad Cooperative Insurance Company is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia to transact cooperative insurance operations and related activities. Its principal lines of business include medical, motor, property, engineering, and general accident. The company is regulated by the Insurance Authority (formerly SAMA) and operates under the Law on Supervision of Cooperative Insurance Companies. A key partnership and shareholder is Al Ahleia Insurance Co. – Kuwait, which holds 14,334,981 shares of the company's 50,000,000 total shares outstanding. The company maintains a statutory deposit of 10% of its paid-up capital with a Saudi Arabian bank as mandated by Article 58 of the Insurance Implementing Regulations.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-11)
Shares Outstanding 50.00M
Market Cap 291.50M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

ALETIHAD operates as a mid-sized Saudi insurer generating substantial top-line insurance revenue of SAR 1.3B, yet it faces severe bottom-line pressure with a net loss of SAR 272M due to elevated underwriting costs.

Source: Q1 2026 (2026-05-11)

Value Creation -75.1% 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
10.3%
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
-90.3%
ROE Return on Equity
-66.4%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
—
P/B Ratio Market capitalization compared to corporate book value
0.7x
Combined Ratio Operating multiple reflecting core operational leverage
122.3%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

ALETIHAD demonstrates a substantial top-line presence with TTM insurance revenue reaching SAR 1.3B, alongside gross written premiums (GWP) of SAR 312M. However, this premium growth trajectory is decoupled from capital sustainability. The company's sustainable growth rate is estimated at 2.08%, but its sustainable ROE is deeply negative at -29.89%. This indicates that the current scale of premium generation is not translating into organic capital accumulation, leaving the company's market penetration vulnerable to capital erosion unless underwriting margins are structurally improved.

Profitability Dynamics

The profitability profile of ALETIHAD is severely pressured by underwriting performance, as evidenced by a combined ratio of 122.27%. This ratio indicates that claims and operational expenses exceed earned premiums by over 22%, leading to a TTM net loss of SAR -272M. Consequently, the return on equity (ROE) has fallen to -66.36%, representing a significant destruction of shareholder value when compared to the company's cost of equity (Ke) of 8.70%. While the company maintains an investment portfolio of SAR 559M, the investment income generated is insufficient to bridge the substantial deficit left by the core underwriting operations.

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
122.3%
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
89.0%

Risk Factors

From a risk and solvency perspective, ALETIHAD's balance sheet shows total assets of SAR 1.1B supported by SAR 410M in total equity. The company carries insurance contract liabilities of SAR 628M, which demand rigorous reserve management and prudent reinsurance arrangements to protect against catastrophic or systemic claims. Under the strict regulatory oversight of the Saudi Central Bank (SAMA), the ongoing net losses pose a direct threat to capital adequacy and solvency margins. With a beta of 1.0038, the market perceives the company's systematic risk as aligned with the broader market, but the internal operational risks remain elevated due to the underwriting deficit.

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