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8230
Governance: B

ALRAJHI TAKAFUL

ALRAJHI TAKAFUL

105.90 SAR / Share

As of: May 28, 2026

22.2x P/E Ratio Trailing 12 Months
4.0x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
10.59B SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
31.7% Net Margin Net Profit / Revenue

Company Profile

Al Rajhi Company for Cooperative Insurance (Alrajhi Takaful) is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia in 2008 and licensed by the Insurance Authority (TMN/22/200911) to conduct takaful operations and related activities, including re-takaful and agency services. The Company's principal lines of business include motor, medical/health, protection & savings, marine, fire, engineering, and casualty insurance. It operates in compliance with Islamic Shari’a legislation under the oversight of a Shari’a Authority. In accordance with regional regulations, the annual surplus from insurance operations is distributed such that 90% is received by shareholders and 10% is received by policyholders.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-10)
Shares Outstanding 100.00M
Market Cap 10.59B
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Al Rajhi Takaful leverages its deep-rooted brand equity and extensive distribution network to deliver robust premium growth and superior underwriting profitability in the Saudi insurance market.

Source: Q1 2026 (2026-05-10)

Value Creation +9.2% 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
+21.6%
Payout Ratio Percent of net profits distributed as dividends
—
Net Margin Net profit margin generated from total operational revenue
31.7%
ROE Return on Equity
17.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
22.2x
P/B Ratio Market capitalization compared to corporate book value
4.0x
Combined Ratio Operating multiple reflecting core operational leverage
90.9%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Al Rajhi Takaful demonstrates powerful market penetration, evidenced by an Insurance Revenue (TTM) of SAR 5.6B and Gross Written Premiums (GWP) of SAR 2.2B. This top-line momentum reflects the company's strong brand resonance and strategic positioning within the Kingdom's expanding financial services sector. With a sustainable growth rate of 21.60%, the company is well-positioned to expand its market share. This growth trajectory is supported by its ability to retain earnings and reinvest them efficiently, ensuring that its expansion is not just rapid, but structurally sound and aligned with the broader economic transformation of Saudi Arabia.

Profitability Dynamics

Underwriting discipline is the cornerstone of Al Rajhi Takaful's profitability, highlighted by a highly favorable Combined Ratio of 90.86%, indicating strong underwriting profitability. This operational efficiency, combined with a massive SAR 12.3B investment portfolio, translates into a stellar Return on Equity (ROE) of 17.89%. When measured against its Cost of Equity (Ke) of 8.70%, the company generates substantial economic value, delivering an ROE that is more than double its hurdle rate. This spread demonstrates that the company's profitability is driven by both disciplined risk selection and highly effective asset management.

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
90.9%
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
94.8%

Risk Factors

From a risk and capital perspective, Al Rajhi Takaful maintains a robust balance sheet with Total Assets of SAR 13.9B and Total Equity of SAR 2.7B. The company's Insurance Contract Liabilities stand at SAR 10.5B, which are well-matched and backed by its substantial SAR 12.3B investment book. This asset-liability alignment provides a strong cushion against underwriting volatility and ensures compliance with SAMA's stringent solvency and capital adequacy frameworks. Operating with a Beta of 1.0038, the company's risk profile closely mirrors the broader market, while its conservative underwriting and Shariah-compliant investment strategies mitigate systemic and operational risks.

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