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8300

Governance: B

WATANIYA

12.11 SAR / Share

As of: May 28, 2026

23.5x P/E Ratio Trailing 12 Months

0.7x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

484.40M SAR Market Cap Total Valuation

1.00 Beta Systematic Risk Index

3.2% Net Margin Net Profit / Revenue

The Story

Wataniya operates as a mid-sized Saudi insurer navigating a highly competitive landscape, where substantial top-line insurance revenue is balanced against thin underwriting margins.

Source: Q1 2026 (2026-05-11)

Value Creation -5.5% 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

+20.3%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

3.2%

ROE Return on Equity

3.2%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

23.5x

P/B Ratio Market capitalization compared to corporate book value

0.7x

Combined Ratio Operating multiple reflecting core operational leverage

99.5%

Loss Ratio Asset pricing multiple relative to total topline revenue

—

Growth Story

Wataniya's growth story is characterized by a significant scale difference between its Gross Written Premiums of SAR 895M and its IFRS 17 Insurance Revenue, which stands at a robust SAR 2.0B TTM. This indicates a strong market presence and high volume of active coverage. However, the sustainable growth rate of 20.27% is contrasted by a lower sustainable ROE of 1.59%, suggesting that while the company has the capacity to expand its premium base, translating this top-line momentum into high-yielding equity growth remains a structural challenge in the competitive Saudi insurance market.

Profitability Dynamics

Profitability for Wataniya is a story of tight operational discipline, as evidenced by a Combined Ratio of 99.54% TTM. This leaves an underwriting margin of just 0.46%, meaning almost every riyal of earned premium is consumed by claims and expenses. Consequently, Net Income TTM stands at SAR 21M, yielding an ROE of 3.19%. This return falls short of the company's estimated Cost of Equity of 8.70%, which is derived from a Beta of 1.0038, indicating that underwriting profits, even when supplemented by income from the SAR 642M investment portfolio, are currently insufficient to cover the opportunity cost of capital.

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

99.5%

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

76.1%

Risk Factors

From a risk perspective, Wataniya manages a substantial balance sheet with Total Assets of SAR 2.3B, anchored by Insurance Contract Liabilities of SAR 1.6B. This liability profile is supported by SAR 648M in Total Equity and an investment book of SAR 642M, providing a buffer to meet regulatory solvency requirements set by the Insurance Authority. The primary risk lies in the high leverage ratio of insurance liabilities to equity, meaning any adverse deviation in claims or underwriting discipline could quickly erode the thin profit margins and impact capital adequacy.

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