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8190
Governance: B

UCA

UCA

3.02 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months
6.8x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
120.80M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
-238.1% Net Margin Net Profit / Revenue

Company Profile

United Cooperative Assurance Company (UCA) is a Saudi Joint Stock Company licensed by the Insurance Authority to transact cooperative insurance and reinsurance operations in the Kingdom of Saudi Arabia. The company's business segments include Medical, Motor (Comprehensive and TPL), Energy, Engineering, and Others (comprising Property, Marine, Aviation, and general accidents). As of March 31, 2026, the company faces significant regulatory and financial challenges, with accumulated losses reaching 114.67% of share capital and a negative solvency margin. This has led to the Insurance Authority suspending the issuance and renewal of compulsory policies, including motor vehicle insurance, as of February 2026. Management has developed a 2026–2030 business recovery plan focused on capital restructuring, utilization of its SAR 60 million statutory deposit for claim settlements, and underwriting optimization.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-18)
Shares Outstanding 40.00M
Market Cap 120.80M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

UCA is currently facing severe underwriting headwinds and capital erosion, as evidenced by a combined ratio well above 100% and a deeply negative return on equity.

Source: Q1 2026 (2026-05-18)

Value Creation -1362.2% 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
-238.1%
ROE Return on Equity
-1353.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
—
P/B Ratio Market capitalization compared to corporate book value
6.8x
Combined Ratio Operating multiple reflecting core operational leverage
127.7%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

UCA's top-line performance shows a divergence between its TTM Insurance Revenue of SAR 740M and Gross Written Premiums (GWP) of SAR 197M, reflecting the transition and recognition dynamics under IFRS 17. Despite generating substantial insurance revenue, the company's ability to translate this top-line activity into sustainable growth is severely constrained. With a deeply negative ROE of -1353.53%, the traditional mechanics of sustainable growth are disrupted, yielding a nominal sustainable growth rate of 2.08% that does not reflect healthy operational expansion but rather capital contraction. The company's market positioning is pressured as it attempts to stabilize its premium base while managing significant underwriting outflows.

Profitability Dynamics

Profitability at UCA is severely strained, characterized by a Combined Ratio of 127.68% for the trailing twelve months, indicating that underwriting expenses and claims significantly exceed earned premiums. This operational deficit has culminated in a Net Income of SAR -240M. The resulting Return on Equity (ROE) stands at an extreme -1353.53%, failing to meet the estimated Cost of Equity (Ke) of 8.70% by an exceptionally wide margin. The overall combined ratio clearly points to systemic underwriting losses that investment income from the SAR 201M portfolio is unable to offset, leading to substantial destruction of book value.

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
127.7%
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
88.5%

Risk Factors

The risk profile of UCA is highlighted by its highly leveraged balance sheet, where Total Equity has eroded to just SAR 18M against Total Assets of SAR 756M. This leaves an exceptionally thin capital buffer to support Insurance Contract Liabilities of SAR 635M. The company's solvency is under acute pressure, requiring close monitoring under SAMA's regulatory framework. With investments of SAR 201M and a beta of 1.0038, the company faces both asset-liability mismatch risks and underwriting volatility, where any further adverse claims development could severely threaten its remaining capital base and regulatory compliance.

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