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8260
Governance: B

GULF GENERAL

GULF GENERAL

3.66 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months
0.7x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
109.80M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
-136.6% Net Margin Net Profit / Revenue

Company Profile

Gulf General Cooperative Insurance Company (GGCI) is a Saudi Joint Stock Company licensed to provide insurance and reinsurance services in the Kingdom of Saudi Arabia, with principal lines including medical, motor, accident & liability, marine, property, and engineering. The company is currently under the regulatory oversight of the Insurance Authority (IA), which succeeded SAMA in late 2024. As of March 31, 2026, GGCI faces material uncertainties regarding its ability to continue as a going concern, as accumulated losses reached SR 273 million (91% of share capital) and its solvency ratio fell to 36%, significantly below the 100% regulatory requirement. To mitigate these risks, management has secured a SR 50 million subordinated loan from shareholders and entered into a binding agreement with a strategic investor ('Bluefive') for capital restructuring and increase.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-13)
Shares Outstanding 30.00M
Market Cap 109.80M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Gulf General Cooperative Insurance Company is currently navigating a challenging operational phase, characterized by significant underwriting losses and capital erosion despite maintaining a baseline of insurance revenue.

Source: Q1 2026 (2026-05-13)

Value Creation -82.0% 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
-136.6%
ROE Return on Equity
-73.3%

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
131.2%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Gulf General's top-line performance shows a divergence between its TTM Insurance Revenue of SAR 309M and Gross Written Premiums (GWP) of SAR 125M, reflecting the transition and recognition dynamics under IFRS 17. However, the company's capacity for sustainable growth is severely constrained. With a negative return on equity (ROE) of -73.28%, the sustainable growth rate is mathematically pressured, and the estimated sustainable ROE stands at -36.64%. This indicates that without a fundamental turnaround in underwriting profitability or capital injections, the company's ability to organically expand its market share in the competitive Saudi insurance sector remains limited.

Profitability Dynamics

The profitability profile of Gulf General highlights significant operational headwinds, anchored by a Combined Ratio of 131.20% for the trailing twelve months. This ratio, well above the 100% breakeven threshold, indicates that underwriting activities are highly unprofitable. Consequently, the company recorded a Net Income of SAR -111M. This operational deficit has dragged the Return on Equity (ROE) down to -73.28%, failing to meet the estimated Cost of Equity (Ke) of 8.70% by a wide margin. While the company maintains an investment portfolio of SAR 242M, the investment income generated has been insufficient to offset the substantial underwriting losses.

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
131.2%
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
94.6%

Risk Factors

From a risk perspective, Gulf General's balance sheet reflects the strain of ongoing losses, with Total Equity standing at SAR 151M against Total Assets of SAR 355M. Insurance Contract Liabilities of SAR 173M represent a significant portion of its obligations, requiring careful reserve management under SAMA's strict regulatory framework. The persistent capital erosion, highlighted by the negative net income, poses a direct threat to the company's solvency margins. To maintain compliance with SAMA regulations and protect its capital base, the company must rely heavily on robust reinsurance arrangements and potential capital restructuring to mitigate underwriting volatility and stabilize its solvency position.

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