Walaa Cooperative Insurance: Key Insights on Performance and Opportunities

Walaa Cooperative Insurance was established in 2008 in Riyadh and operates under the cooperative insurance system, which forms the legal framework for the sector in the Kingdom of Saudi Arabia. The company relies on the principle of cooperation among policyholders, distributing insurance surpluses at the end of each financial year in accordance with governance regulations, rather than focusing on achieving individual profits. Walaa offers a comprehensive range of insurance products, such as health insurance for individuals and companies, vehicle insurance, property insurance, marine and aviation insurance, and specialized insurance for energy and aviation. The diversity of these products responds to the growing needs of the local market, especially with the implementation of mandatory health insurance and the expansion of infrastructure projects.

Walaa aims to be a strategic partner for its clients by providing innovative insurance solutions and developing its digital service network. The company listed its shares on the Saudi financial market (Tadawul) within the insurance sector, making it subject to continuous evaluation by investors and financial institutions. The company's operations are supervised by the Saudi Central Bank (SAMA) and the Capital Market Authority, ensuring compliance with regulatory standards and protecting the rights of clients and shareholders.

Walaa offers a diverse range of insurance services to meet the needs of a wide segment of individuals and companies alike. Key products include:

- Health Insurance: Covers medical insurance for individuals and groups, with comprehensive coverage for medical expenses, treatments, surgeries, and medications.

- Vehicle Insurance: Covers private and commercial vehicles against accidents, theft, and natural disasters.

- Property Insurance: Includes coverage against fire, natural disasters, theft, and other damages that may occur to buildings and equipment.

- Marine and Aviation Insurance: Covers shipments and goods transported by sea or air, in addition to insuring aircraft and ships.

- Energy Insurance: Covers oil, gas, and renewable energy projects against operational and natural risks.

- Liability Insurance: Such as professional liability, civil liability, and corporate insurance against legal risks.

Walaa continuously seeks to develop its products in line with technological advancements and customer requirements, offering digital solutions to facilitate the application, renewal, and claims settlement processes.

Walaa Cooperative Insurance recorded stable financial performance during 2024 and 2025. The average share price in the first half of 2025 was approximately SAR 11.3, with a market capitalization ranging between SAR 2 billion and SAR 3 billion, making it a mid-sized company in the Saudi insurance sector.

Regarding profitability, the price-to-earnings (P/E) ratio ranged between 10 and 20 times according to quarterly earnings fluctuations, which is within the average for the insurance sector in the Kingdom. The company's cash distribution yield was around 3-4%, reflecting a balanced dividend distribution policy between supporting financial solvency and achieving returns for shareholders.

In the last quarter of 2024, the company recorded revenue growth of 5-10% compared to the same period last year, driven by an increase in health and vehicle insurance premiums. The annual net profit also rose by an average of about 10%, partly due to improved operational efficiency and a decrease in the claims ratio relative to premium growth.

These indicators reflect the company's ability to maintain a good financial balance in a market characterized by intense competition and ongoing regulatory changes.

The insurance sector in the Kingdom of Saudi Arabia is one of the vital sectors experiencing rapid growth, driven by the Vision 2030 initiatives to diversify income sources and expand the base of non-oil financial services. The sector includes over thirty insurance and reinsurance companies competing to provide integrated solutions for individuals and businesses.

Key growth drivers in the insurance sector include the implementation of mandatory health insurance, increased demand for property insurance and major projects, and heightened awareness of the importance of insurance protection. New regulations, such as the implementation of IFRS 17 standards, have also raised solvency requirements and enhanced transparency in corporate reporting.

Insurance companies in Saudi Arabia are supervised by the Central Bank (SAMA) and the Capital Market Authority, imposing strict standards for capital, governance, and risk management. Recently, the sector has witnessed the entry of foreign investment funds and an expansion of digital products, increasing competition. Nevertheless, companies like Walaa have maintained stable financial performance and good credit ratings.

Walaa Cooperative Insurance occupies an important competitive position in the Saudi insurance sector, competing with major companies such as Tawuniya Insurance, Bupa Arabia, Medgulf, AXA Saudi Arabia, and Al-Etihad. Walaa is distinguished by its focus on health and vehicle insurance, with gradual expansion into industrial and energy insurance.

Walaa has managed to maintain annual growth in insurance premiums and expand its customer base, especially in the individual and small to medium-sized enterprise sectors. The company has also benefited from digital transformation in service delivery and claims settlement, enhancing customer satisfaction and loyalty.

Key competitive factors in the sector relate to product quality, claims settlement speed, financial solvency strength, and the ability to innovate in digital solutions. According to credit rating reports from Fitch and Standard & Poor's, Walaa has a stable outlook and an (A-) rating, reflecting the confidence of regulatory authorities and investors in the company's ability to meet its obligations and continue growing.

The quarterly financial results of Walaa during 2024 showed continued improvement in revenues and net income. In the third and fourth quarters of 2024, the company announced a total revenue increase of 5-10% annually, driven by an increase in health and vehicle insurance premiums.

The company also recorded an improvement in the claims ratio relative to premium growth, leading to increased underwriting profits. Management successfully reduced operational costs by updating collection systems and expediting claims processes. The annual net profit showed an average growth of about 10% compared to the previous year, despite rising costs associated with inflation and medical service expenses.

These results demonstrate the company's ability to achieve a balance between growth and improving operational efficiency, confirming the effectiveness of its strategy in facing sector challenges.

In 2024, Walaa Cooperative Insurance announced regulatory approval to increase its capital to SAR 600 million, aimed at supporting financial solvency and enhancing its capacity to cover new policies and expand its investments. The company is using this capital expansion to invest in product development and improve its technical infrastructure.

In terms of credit ratings, Walaa received an (A-) rating from Fitch with a stable outlook in August 2025, and a similar rating from Standard & Poor's in April 2024. These ratings reflect the company's strong financial position and ability to meet its obligations, supporting investor and customer confidence in the sustainability of its operations.

These developments are a key support for the company's strategy to expand and enhance its competitiveness in the Saudi insurance market.

Walaa Cooperative Insurance follows a moderate dividend distribution policy aimed at achieving a balance between supporting its financial position and providing attractive returns to shareholders. The company's cash distribution yield in recent years has been around 3-4% annually, and management is keen to continue distributing dividends in line with business results and legal reserve requirements.

Investors monitor dividend announcements after each financial year or quarter, where the board of directors decides on the amount of distributed profits based on financial performance and expansion needs. The continuity of cash distributions is an attractive factor for investors seeking regular returns, especially in a sector characterized by quarterly profit fluctuations.

It is important to note that dividend distribution decisions are subject to regulatory approval and consider the company's future financial considerations in light of sector challenges.

Walaa places great importance on governance and transparency in managing its operations, with the board of directors comprising independent members and experts in the insurance and financial sectors. In September 2025, the company announced the formation of a new audit committee for the board, consisting of members with diverse experiences in business and financial oversight.

The audit committee aims to enhance internal control, review financial reports, assess risks, and provide recommendations to the board regarding improving financial performance and ensuring compliance with regulatory standards. Governance policies ensure a balance in making strategic decisions, considering the interests of shareholders and clients.

These practices reflect the company's commitment to the best governance standards and support the confidence of regulatory authorities and investors in the sustainability of its operations.

Walaa's future growth strategy is based on several key pillars, including: expanding its customer base in health insurance and mandatory insurance, strengthening partnerships with government and private companies, and developing digital products to facilitate subscription and claims settlement processes.

Management is also focusing on improving operational efficiency and adopting new technologies in risk analysis and enhancing customer experience. With the increase in capital, the company aims to expand its product portfolio and enter new insurance sectors related to infrastructure and energy projects.

The rapid economic developments in the Kingdom, such as the growth of large projects and increased insurance awareness, are among the main growth drivers for the company. Walaa is also monitoring regulatory and technological changes in the sector to remain at the forefront of innovation and maintain its competitive position.

The Saudi insurance sector faces several challenges, most notably market fluctuations and interest rates, rising medical claims costs, intense price competition, and regulatory changes such as the implementation of IFRS 17. These factors affect the profit margin and financial solvency of insurance companies.

For Walaa, risks also include changes in the economic environment (such as oil price fluctuations), operational costs, and claims management risks. To address these challenges, the company relies on effective risk management, enhancing technical reserves, and updating internal control procedures.

The diversity of the company's portfolio helps mitigate the impact of sector shocks, and management continuously seeks to improve operational efficiency and develop products that align with market expectations and regulatory requirements.

Walaa Cooperative Insurance has witnessed significant development in providing digital services, whether in issuing insurance policies, settling claims, or providing technical support to customers. The company has launched digital health insurance packages and electronic medical examination services, and has partnered with healthcare providers to expand its hospital network.

Digital transformation contributes to improving customer experience, speeding up processes, and reducing operational costs. It also enhances the company's ability to collect and analyze data to improve risk management and develop new products. As the digital economy in the Kingdom continues to grow, modern technologies are expected to play an increasing role in enhancing the competitiveness of insurance companies.

Walaa reaffirms its commitment to digital innovation as part of its strategy to keep pace with sector transformations and meet customer expectations.

The performance of insurance companies in Saudi Arabia is directly affected by economic developments such as GDP growth, the volume of new projects, and the level of government and private spending. Increased investments in infrastructure and major projects drive demand for engineering and property insurance.

Legislatively, solvency requirements and the implementation of international accounting standards have contributed to improving transparency and enhancing investor confidence in the sector. Regulatory authorities also impose strict oversight on financial reserves and underwriting policies.

Walaa closely monitors these changes and adapts its strategy to keep pace with economic transformations, while ensuring full compliance with regulatory standards and protecting the interests of shareholders and clients.

For reliable information about the performance of Walaa Cooperative Insurance, it is recommended to rely on the following official sources:

- Saudi Stock Market (Tadawul) website: provides daily price data, financial statements, and immediate disclosures.
- Capital Market Authority (CMA) website: displays amended financial statements, governance standards, and regulatory reports.
- Walaa's official website: contains official news releases, financial results reports, announcements of capital increases, and credit ratings.
- Argaam website: offers financial analyses, sector performance indicators, and coverage of company news.

These sources provide updated and accurate information necessary to assess the company's status and follow its financial and operational developments.