Union Insurance: Everything You Need to Know About the Stock and Financial

Union Insurance Cooperative Company is one of the leading joint-stock companies in the Kingdom of Saudi Arabia, established in 1428 AH (2007 AD) by a decision from the Council of Ministers and a royal decree. Its headquarters is located in Riyadh, and it operates under the supervision of the Saudi Insurance Authority. The company is an extension of Union Commercial Insurance, giving it accumulated experience in the sector. With a paid-up capital of 400 million Saudi Riyals, Union Insurance provides a comprehensive range of insurance products, including health insurance for individuals and businesses, vehicle insurance, property insurance, accident insurance, as well as specialized insurance products for businesses and institutions. The company is subject to strict regulatory controls imposed by the Saudi financial market and the Insurance Authority, enhancing its credibility and operational efficiency. The company is also linked to the developments of the Saudi economy and Vision 2030, particularly in digital transformation and increasing community awareness of the importance of insurance. Through this combination of experience and innovation, Union Insurance has secured a prominent position in the local insurance sector.

Union Insurance Cooperative Company offers a diverse range of products and services to meet the needs of individuals and businesses in the Kingdom. Among its most notable products is health insurance, which accounts for a significant portion of the written premiums and includes coverage for individuals, families, and businesses within a wide medical network. The company also provides vehicle insurance that meets mandatory insurance requirements, including comprehensive and third-party coverage for vehicles. In the field of property insurance, Union Insurance offers coverage for homes, factories, warehouses, and commercial establishments against various risks such as fire, theft, and natural disasters. Its services also include personal accident insurance, civil liability insurance, and marine and aviation insurance. The company keeps pace with digital development through electronic platforms and applications that facilitate the purchase of products and the electronic submission and tracking of claims, reflecting its strategy to enhance customer experience and improve service efficiency. The company relies on a wide network of partners and agents to support the distribution of its products and is keen to develop tailored insurance programs to suit various customer segments.

The Saudi insurance sector is supervised by the Insurance Authority, which is part of the Saudi Arabian Monetary Authority (SAMA), and all companies operating in it, including Union Insurance, are subject to strict regulatory controls. These regulations aim to protect the rights of policyholders and ensure the stability of the sector. The regulations include strong capitalization requirements, financial reserve adequacy procedures, and the necessity for regular financial disclosures through platforms such as Tadawul. The Authority also imposes corporate governance standards to monitor performance and manage risks. In recent years, the sector has witnessed significant regulatory updates, most notably the transition to international financial reporting standards for the insurance sector (IFRS 17), which require greater transparency in financial reporting and reserve estimates. The regulations also mandate companies to adopt anti-money laundering and counter-terrorism financing measures. This strong regulatory framework has contributed to enhancing customer and investor confidence in insurance companies and ensuring the sector's sustainability in the long term. Union Insurance is committed to continuously updating its financial and operational policies to comply with these requirements.

Union Insurance witnessed gradual growth in operating revenues during 2024 and 2025, driven by increased demand for health insurance and growing premiums for vehicle and property insurance. The stock price at the end of July 2025 was approximately 12.47 Saudi Riyals, while the market capitalization was estimated at around 624 million Riyals. Operating revenue growth ranged between 5% and 10% compared to the previous year, indicating an expansion of the customer base and increased insurance awareness. However, net profits did not grow at the same pace, as profits were affected by rising claims costs and increased technical reserves in compliance with regulatory standards. The company did not announce any cash dividends during 2024 and 2025, opting instead to strengthen its financial solvency by reinvesting profits. The approximate price-to-earnings ratio ranges between 10 and 12, reflecting the average market valuation of the company's profitability. It is important to monitor the quarterly reports issued by the company through the Tadawul platform to obtain the latest data and analyze profitability trends and growth sources.

The stock price of Union Insurance (symbol 8170) is a direct reflection of the company's performance and the market's reaction to its financial results and news. At the end of July 2025, the stock price was 12.47 Saudi Riyals, bringing the company's market capitalization to approximately 624 million Riyals. No dividends were announced in the last two years, resulting in a zero dividend yield, which is common among insurance companies that prefer to bolster their reserves to meet future liabilities. The price-to-earnings (P/E) ratio ranged between 10 and 12 times based on the company's reported earnings, which is considered average for the sector locally. It is worth noting that the P/E ratio fluctuates based on quarterly and annual results. These indicators provide a numerical picture of the company's position in the market and help observers compare its performance with other companies in the sector. For real-time prices and updated indicators, it is always advisable to follow the official Tadawul platform.

Union Insurance recorded significant growth in total written premiums during 2024, supported by increased demand for health insurance and expanding the customer base in vehicle and property insurance. Preliminary data indicates that operating revenues rose by 5-10% compared to 2023. However, net profits experienced slower growth, primarily due to rising claims costs and reinsurance reserves, factors that typically affect cooperative insurance companies. On the other hand, the company did not announce any cash dividends, as it prefers to manage profits to support financial solvency and enhance its reserves. This strategy aligns with sector trends, especially in light of regulatory changes and increased capitalization requirements. It is also noted that the company focuses on improving operational efficiency and reducing administrative costs through digital transformation and customer service development, which may positively impact profitability in the future. It is important to monitor quarterly and annual reports to accurately track revenue and profit developments.

Union Insurance enjoys strong financial solvency, supported by a paid-up capital of 400 million Saudi Riyals. This level of capitalization provides the company with sufficient capacity to cover insurance liabilities and provide the necessary reserves to meet claims. In May 2025, Moody's Investors Service confirmed the company's rating at A3 with a stable outlook, which is a relatively high rating in the regional insurance sector. This rating reflects the company's ability to meet its financial obligations even in volatile market conditions, enhancing customer and investor confidence in its financial stability. Additionally, compliance with regulatory standards, especially regarding capital adequacy and reserve estimation, strengthens the company's robustness. Financial solvency plays a crucial role in the sustainability of insurance companies, especially amid high competition and changes in the economic environment.

The insurance sector is a vital part of the non-oil Saudi economy and is witnessing annual growth driven by increasing insurance awareness, mandatory health insurance for establishments, and a rising number of vehicles. With Vision 2030, the sector has gained strong momentum towards digital transformation and the adoption of modern insurance technologies (InsurTech). However, the sector faces several challenges, most notably intense competition among local and global companies, fluctuations in interest rates affecting reserve investments, and increasing regulatory requirements such as the implementation of IFRS 17. Companies are striving to enhance operational efficiency, develop products, and offer advanced digital services to attract and retain customers. In this context, Union Insurance stands out as a player keeping pace with these transformations by developing digital distribution channels and expanding its partner network. The future of the sector is linked to companies' ability to adapt to regulatory changes and capitalize on market growth opportunities.

A large number of cooperative companies operate in the Saudi insurance market, raising the level of competition and stimulating product and service development. Among the main competitors of Union Insurance are: Cooperative Insurance Company (symbol 8010), Bupa Arabia Cooperative Insurance (symbol 8210), Arab Shield Cooperative Insurance (symbol 8070), and MedGulf Insurance (symbol 8030). These companies compete in health insurance, vehicle insurance, and general insurance sectors. While Cooperative and Bupa stand out in the health insurance sector, companies like Arab Shield and MedGulf excel in specialized insurance and government projects. Strong competition drives companies to offer competitive prices and advanced digital services, along with improving claims processing operations. The Saudi insurance market is characterized by flexibility, allowing companies to adjust their strategies to meet changes in demand and regulations. Monitoring the performance of competing companies helps to understand Union Insurance's position in the market and its strategies for continued growth.

Recently, several important developments have occurred for Union Insurance, including the confirmation of the A3 credit rating from Moody's in May 2025, reflecting the company's financial stability and effective risk management. The company also announced its financial results for the first quarter of 2025, which showed continued growth in total written premiums, especially in the health insurance sector. Strategically, the company focuses on enhancing digital distribution channels and expanding its partner network in the health insurance sector. The company has not announced any major acquisition or merger deals during 2024-2025, but is focusing its efforts on developing internal services and improving customer experience. On another note, the ordinary general assembly of shareholders convened in May 2025 and discussed financial results and distribution policies. The company is also preparing to implement the requirements of IFRS 17, which necessitates the development of its accounting systems and increased transparency in financial reporting. These developments confirm the company's commitment to digital transformation and regulatory compliance.

Union Insurance places great importance on digital transformation as part of its strategy to develop services and enhance customer experience. The company has launched integrated electronic platforms and mobile applications that allow customers to purchase insurance products, submit claims, and track them electronically. It has also developed internal systems to process claims quickly and transparently, along with collaborating with new medical networks to enhance health insurance offerings. The company also focuses on developing tailored insurance programs for small and medium-sized enterprises and adopting advanced technological solutions such as artificial intelligence to analyze risks and customize pricing. Amid the digital transformation taking place in the sector, Union Insurance aims to enhance its competitive position by investing in technological infrastructure and training human resources on modern technologies. These efforts align with market trends and Vision 2030, supporting the company's long-term growth.

Despite the growth opportunities in the Saudi insurance sector, investing in the stocks of insurance companies, including Union Insurance, involves several risks that investors should consider. Among these risks are: operational risks (such as rising claims costs or poor reserve estimates), competitive risks (due to the presence of major companies offering competitive prices or services), regulatory changes (such as shifts in capitalization or financial reporting requirements), and general economic risks (such as fluctuations in interest rates affecting the company's investment returns). Additionally, the financial performance of insurance companies may be affected by changes in the economic environment and customer behavior. Therefore, it is essential to monitor quarterly and annual reports and understand the company's policies in risk and reserve management. Before making any investment decision, it is always advisable to consult a licensed financial advisor to assess the suitability of the investment for personal financial goals.

To reliably follow news and data about Union Insurance, one can rely on the Tadawul platform (Saudi financial market), where official announcements and quarterly and annual financial reports are published. The platform provides updated information on stock price, market capitalization, financial data, and news of general assemblies. The company's official website can also be followed for details on products and internal developments. Other useful sources include specialized financial news platforms, such as Argaam and Mubasher, which provide analyses and reports on the company's performance and sector developments. For investors, it is advisable to follow official disclosures and annual general meetings, where distribution policies and strategic developments are discussed. Monitoring these sources ensures access to accurate and reliable information about the company and helps in understanding market and financial trends.