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8250
Governance: B

GIG

GIG

27.40 SAR / Share

As of: May 28, 2026

10.1x P/E Ratio Trailing 12 Months
1.2x P/B Ratio Price to Book Value
4.4% Dividend Yield Annual Dividend / Share
1.44B SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
34.2% Net Margin Net Profit / Revenue

Company Profile

Gulf Insurance Group (GIG) is a Saudi joint stock company incorporated in 2009, transacting cooperative insurance and reinsurance operations in the Kingdom of Saudi Arabia. Its principal lines of business encompass health, motor, marine, property, engineering, accident and liability, and protection insurance. Licensed by the Insurance Authority (formerly SAMA), the company operates through branches in Riyadh, Khobar, and Jeddah. GIG is a subsidiary of Gulf Insurance Group (Gulf) B.S.C., ultimately owned by Fairfax Financial Holdings Limited. The company participates in insurance pools for Hajj and Umrah, Inherent Defect Insurance (IDI), and insurance for Non-Saudi Employees in Private Sector Entities.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-12)
Shares Outstanding 52.50M
Market Cap 1.44B
Enterprise Value —
Geographic Revenue
Major Customers

The Story

GIG navigates the Saudi insurance market by balancing disciplined underwriting with a robust investment portfolio, delivering steady returns above its cost of capital.

Source: Q1 2026 (2026-05-12)

Value Creation +2.9% 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
4.4%
Sustainable Growth Rate Rate at which company can grow internally using reinvested profits
+6.5%
Payout Ratio Percent of net profits distributed as dividends
44.1%
Net Margin Net profit margin generated from total operational revenue
34.2%
ROE Return on Equity
11.6%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
10.1x
P/B Ratio Market capitalization compared to corporate book value
1.2x
Combined Ratio Operating multiple reflecting core operational leverage
92.9%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

GIG demonstrates a solid market presence in the Kingdom, supported by an Insurance Revenue of SAR 1.6B and Gross Written Premiums of SAR 734M. This top-line performance reflects its established positioning in key insurance segments. The company's capacity for self-funded expansion is highlighted by a sustainable growth rate of 6.49%, driven by a retention-supported sustainable ROE of 6.51% and a payout ratio of 44.11%. This balance between rewarding shareholders and reinvesting earnings allows GIG to maintain a steady growth trajectory without overextending its capital base.

Profitability Dynamics

Profitability at GIG is anchored by strong underwriting discipline, as evidenced by a combined ratio of 92.94%, indicating that its core insurance operations are comfortably profitable. This underwriting success, combined with returns from its SAR 1.9B investment portfolio, has propelled the company's Return on Equity to 11.64%. Crucially, this ROE exceeds GIG's estimated Cost of Equity of 8.70%, which is derived with a Beta of 1.0038, demonstrating clear economic value creation for its equity holders. Net income for the TTM period stands at SAR 143M, reflecting the dual engines of underwriting profitability and investment yield.

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
92.9%
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
79.6%

Risk Factors

From a risk and balance sheet perspective, GIG maintains a robust capital cushion with Total Equity of SAR 1.2B against Total Assets of SAR 3.1B. The company manages substantial insurance contract liabilities of SAR 1.6B, which are backed by a highly liquid investment book of SAR 1.9B. This asset-liability alignment supports GIG's solvency profile and ensures compliance with SAMA's regulatory frameworks. While specific reinsurance retention details are not fully disclosed, the conservative asset-to-liability structure mitigates systemic underwriting shocks and provides a stable foundation for policyholder protection.

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