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8310
Governance: B

AMANA INSURANCE

AMANA INSURANCE

6.40 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months
0.9x P/B Ratio Price to Book Value
— Dividend Yield Annual Dividend / Share
275.20M SAR Market Cap Total Valuation
1.00 Beta Systematic Risk Index
-16.0% Net Margin Net Profit / Revenue

Company Profile

Amana Cooperative Insurance Company is a Saudi joint stock company headquartered in Riyadh, licensed by the Insurance Authority (formerly SAMA) to transact cooperative insurance operations. Its principal lines of business include medical, motor, marine, fire, engineering, accident and liability, and protection insurance. The company operates through three primary segments: Medical, Motor, and Property & Casualty. As of March 31, 2026, the company maintains a statutory deposit of SAR 64.5 million, representing 15% of its paid-up share capital. The company is currently executing a five-year turnaround plan focused on expanding digital channels, strengthening broker networks, and penetrating new market segments to address accumulated losses which reached SAR 194.11 million (45.14% of share capital) as of the reporting date.

Sector Insurance
Fiscal Year End 12-31
Latest Filing Q1 2026 (2026-05-14)
Shares Outstanding 43.00M
Market Cap 275.20M
Enterprise Value —
Geographic Revenue
Major Customers

The Story

Amana Insurance is currently navigating a transitional phase characterized by underwriting losses and negative returns as it seeks to stabilize its operational footprint in the competitive Saudi insurance market.

Source: Q1 2026 (2026-05-14)

Value Creation -13.2% 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
+2.1%
Payout Ratio Percent of net profits distributed as dividends
—
Net Margin Net profit margin generated from total operational revenue
-16.0%
ROE Return on Equity
-4.5%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings
—
P/B Ratio Market capitalization compared to corporate book value
0.9x
Combined Ratio Operating multiple reflecting core operational leverage
105.7%
Loss Ratio Asset pricing multiple relative to total topline revenue
—

Growth Story

Amana Insurance's top-line performance shows a divergence between its historical Gross Written Premiums (GWP) of SAR 71M and its TTM Insurance Revenue of SAR 310M under IFRS 17, reflecting a shifting premium recognition structure. However, translating this top-line volume into sustainable expansion remains a challenge. The company's sustainable growth rate is estimated at 2.08%, while its sustainable ROE stands at -2.24%. Without a positive retention-driven capital accumulation cycle, the company's market penetration and premium growth trajectory remain constrained by its current capital base and the necessity to prioritize underwriting discipline over volume expansion.

Profitability Dynamics

Profitability remains the primary hurdle for Amana Insurance, as evidenced by a TTM Combined Ratio of 105.68%, indicating that underwriting operations are running at a loss where claims and expenses exceed premium revenues. This operational deficit has led to a TTM Net Income of SAR -14M and a negative Return on Equity (ROE) of -4.47%. When compared to its estimated Cost of Equity (Ke) of 8.70%, derived from a Beta of 1.0038, the company is experiencing a capital-destroying spread. While investment assets of SAR 104M contribute to the bottom line, they are currently insufficient to bridge the gap left by the elevated combined ratio, highlighting the urgent need for structural expense management and stricter risk pricing.

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
105.7%
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
86.7%

Risk Factors

From a risk and balance sheet perspective, Amana Insurance holds Total Assets of SAR 536M supported by Total Equity of SAR 306M, representing a relatively solid equity cushion relative to its Insurance Contract Liabilities of SAR 193M. However, operating in the highly regulated SAMA environment requires maintaining strict solvency margins. The lack of positive net earnings pressures the company's capital adequacy over time. Managing these insurance contract liabilities without the benefit of strong underwriting cash flows increases the company's reliance on its investment portfolio and reinsurance arrangements to mitigate systemic underwriting shocks and ensure regulatory compliance.

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