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8210
Governance: B

BUPA ARABIA

BUPA ARABIA

171.70 SAR / Share

As of: May 28, 2026

23.7x P/E Ratio Trailing 12 Months
4.4x P/B Ratio Price to Book Value
2.3% Dividend Yield Annual Dividend / Share
25.75B SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
20.7% Net Margin Net Profit / Revenue

Company Profile

Bupa Arabia for Cooperative Insurance Company is a Saudi Joint Stock Company licensed to conduct cooperative insurance business in the Kingdom of Saudi Arabia. The Company is a mono-line insurer underwriting medical insurance only, primarily operating in the Private Medical Insurance (PMI) business. It operates through segments including Corporate (large corporations), Small and Medium Enterprises (SMEs), and individuals. The Group includes two wholly-owned subsidiaries in KSA: Bupa Arabia For Third Party Administration, which provides claims management services, and Health Horizon Medical Care Company, which provides healthcare services. Distribution of surplus from insurance operations is regulated such that shareholders receive 90% and policyholders 10%. As of March 2026, the Group is executing a proposed restructuring approved by shareholders to demerge its insurance business into a newly established wholly-owned subsidiary.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-05)
Shares Outstanding 150.00M
Market Cap 25.75B
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Bupa Arabia is a dominant force in the Saudi cooperative insurance sector, leveraging massive scale in the medical segment to deliver consistent underwriting profitability and high capital efficiency.

Source: Q1 2026 (2026-05-05)

Value Creation +9.8% 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
2.3%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+8.3%
Payout Ratio Percent of net profits distributed as dividends
55.2%
Net Margin Net profit margin generated from total operational revenue
20.7%
ROE Return on Equity
18.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
23.7x
P/B Ratio Market capitalization compared to corporate book value
4.4x
Combined Ratio Operating multiple reflecting core operational leverage
95.4%
Loss Ratio Asset pricing multiple relative to total topline revenue
95.2%

Growth Story

Bupa Arabia's growth trajectory is anchored by its massive market presence, reflected in an Insurance Revenue (TTM) of SAR 19.3B and Gross Written Premiums (GWP) of SAR 7.5B. This scale positions the company as a primary beneficiary of regulatory tailwinds and expanding mandatory health insurance coverage in Saudi Arabia. The company's sustainable growth rate is established at 8.30%, supported by a strong Return on Equity (ROE) of 18.53% and a dividend payout ratio of 55.24%, demonstrating a balanced capital allocation strategy that funds organic premium expansion while consistently returning capital to shareholders.

Profitability Dynamics

The profitability profile of Bupa Arabia is defined by high-volume, disciplined underwriting, evidenced by a combined ratio of 95.41%. This performance is characterized by a high loss ratio of 95.22%, which is offset by an exceptionally lean expense ratio of 0.18%, highlighting superior operational efficiency and scale advantages. With Net Income (TTM) reaching SAR 1.1B, the company achieves an ROE of 18.53%, which substantially exceeds its estimated Cost of Equity (Ke) of 8.70% (derived from a beta of 1.0038). This spread confirms significant economic value creation, further bolstered by the steady yield from its SAR 10.7B investment asset base.

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
95.4%
Loss Ratio Net claims incurred relative to net earned premiums
95.2%
Expense Ratio Acquisition and general admin costs relative to net earned premiums
0.2%
Retention Ratio Proportion of gross written premium retained by company
98.9%

Risk Factors

Bupa Arabia's risk management framework is supported by a robust balance sheet featuring Total Assets of SAR 17.5B and Total Equity of SAR 5.9B. The company carries Insurance Contract Liabilities of SAR 10.0B, which are well-matched by its highly liquid investment portfolio of SAR 10.7B. Operating within SAMA's stringent regulatory environment, the company maintains a conservative risk profile, as reflected in its market-aligned beta of 1.0038. The substantial equity cushion and conservative asset allocation mitigate underwriting volatility and potential claims inflation within the medical segment.

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