Al Rajhi Cooperative Insurance: In-Depth Market Performance Study

Al Rajhi Cooperative Insurance was established as one of the leading Saudi companies in the field of Takaful insurance and is registered in the Saudi financial market (Tadawul) within the main market. The company's inception resulted from a strategic partnership between Al Rajhi Banking Group and several local investors, aiming to provide cooperative insurance services that meet the needs of individuals and companies in accordance with Sharia law. The company benefits from a wide customer base due to its association with Al Rajhi Bank, enhancing its distribution network for insurance products and giving it a strong presence across various regions of the Kingdom. Al Rajhi Cooperative Insurance operates under the supervision of the Capital Market Authority and the Saudi Arabian Monetary Authority, adhering to strict regulatory standards that ensure transparency and protect the rights of customers and shareholders.

Takaful Al Rajhi offers a wide range of insurance products, including health insurance for individuals and institutions, vehicle insurance, property and accident insurance, as well as personal and educational insurances. These products are characterized by their compliance with Islamic Takaful principles, where participants pay premiums that contribute to a common fund used to compensate the affected parties within specified coverage categories. The company is keen on developing innovative products such as microinsurance, usage-based insurance, and electronic insurance that can be accessed through mobile applications and digital platforms. This diversity in services helps attract a wide range of customers and supports the company's strategies for sustainable growth and expansion.

Al Rajhi Cooperative Insurance follows an advanced organizational structure that ensures operational efficiency and sound governance. The board of directors consists of a group of experts in the fields of insurance and finance, and the company is overseen by specialized committees in auditing, risk management, and compensation. The company is committed to applying the governance standards issued by the Capital Market Authority, including periodic disclosure, managing conflicts of interest, and enhancing transparency in financial reporting. In 2025, the company witnessed amendments to its bylaws and the election of new board members, reflecting its dynamism in keeping pace with regulatory changes and developing compensation policies in line with global best practices in corporate governance.

Recent financial data indicates that Al Rajhi Cooperative Insurance continues to achieve steady growth in revenues and net profits. The company's stock price is approximately 117 Saudi Riyals, with a market capitalization estimated between 4 and 5 billion Saudi Riyals. According to the company's disclosures for the fourth quarter of 2024, operational revenues reached about 600–700 million Riyals, achieving an annual growth rate of 8–12%. Net profit recorded between 120–130 million Riyals, an increase of approximately 15–20% compared to the same period last year. This growth is driven by an increase in written premiums, particularly in health and vehicle insurance sectors, alongside improved claims management efficiency. The company reinvests a significant portion of its profits to enhance technical reserves, which explains the lower dividend yield compared to some other sectors.

The Takaful insurance sector is considered one of the main drivers of national economic development in the Kingdom of Saudi Arabia, especially with the government's focus on enhancing financial inclusion and expanding mandatory insurance coverage for health and vehicles. Recent legislation has supported the growth of this sector, requiring many institutions and individuals to obtain insurance coverage. Al Rajhi Cooperative Insurance stands out as one of the companies that have benefited from these trends by expanding its product offerings and adopting advanced digital solutions to facilitate customer experience. However, the sector remains susceptible to challenges such as rising health claims and fluctuations in financial markets, necessitating companies to continuously strengthen reserves and improve risk management.

The Saudi financial market has witnessed major transformations in recent years, with increased transparency and a rise in new listings, particularly in the insurance sector. The listing of Al Rajhi Cooperative Insurance on the main market has provided the company with greater attractiveness to investors and increased liquidity for trading its shares. The company is subject to disclosure and governance rules issued by the Capital Market Authority, providing investors with a high level of reliability and access to performance updates. Additionally, the evolution of electronic trading systems and digital platforms has contributed to enhancing the company's presence and attracting new segments of investors.

Al Rajhi Cooperative Insurance competes with several leading companies such as Cooperative Insurance, Malath Insurance, Walaa Insurance, and Alinma Tokio Marine. The company has a strong presence in the health and vehicle insurance sectors, benefiting from the distribution network of Al Rajhi Bank. However, competition is intensifying with other companies offering innovative products and diverse banking partnerships. The superiority of any company in this sector depends on factors such as market share, service quality, claims management efficiency, and the level of digital transformation. Al Rajhi Cooperative Insurance remains in a competitive position thanks to the support of Al Rajhi Bank and its balanced investment strategies.

Al Rajhi Cooperative Insurance's stock is traded under the symbol 8230 on Tadawul, with a current price of approximately 117 Saudi Riyals. The company's market capitalization is estimated between 4 and 5 billion Riyals, based on the number of issued shares and the stock price. The price-to-earnings (P/E) ratio ranges between 12 and 15 times annual earnings, reflecting the stability of the company's profits with moderate growth expectations. The dividend yield is around 1% or less, as the company prefers to retain a significant portion of profits to support technical reserves and liquidity requirements imposed by the Saudi Arabian Monetary Authority.

Al Rajhi Cooperative Insurance follows a balanced dividend distribution policy, with management recommending annual cash dividends ranging between 15% and 20% of capital, equivalent to approximately 0.75–1 Riyal per share. These distributions occur amid improved financial performance, but remain lower than some other sectors due to the nature of Takaful insurance companies, which require continuous enhancement of technical reserves. The company occasionally announces interim distributions, disclosed through Tadawul and its official website, allowing shareholders to easily and transparently track the timing and amounts of distributions.

Al Rajhi Cooperative Insurance has kept pace with the digital transformation in the insurance sector by launching advanced electronic products and adopting Insurtech solutions, such as instant claims reporting and electronic document tracking. The company continuously develops its digital platforms to facilitate purchasing, renewal, and payment processes, in addition to providing interactive customer support services through smart applications. These trends contribute to reducing operational costs and improving response speed, enhancing customer satisfaction and helping to attract new market segments, particularly among youth and digital users.

The performance of Al Rajhi Cooperative Insurance stock is influenced by several key factors, including general economic conditions, regulatory changes in the insurance sector, and the intensity of competition regarding prices and market shares. The efficiency of claims management and service quality also play a pivotal role in achieving sustainable profitability. The company also relies on returns from financial investments, which may be affected by fluctuations in global markets. Additionally, inflation rates and health claims costs impact the company, making risk management and financial reserves critical elements for maintaining the stability of the company's results in the long term.

Al Rajhi Cooperative Insurance has witnessed several significant developments during 2024 and 2025, notably financial disclosures showing profit growth and recommendations for cash dividends to shareholders. The company has strengthened its technological partnerships to enhance customer experience and continues to apply international disclosure standards (IFRS 17) in its financial reports. It announced amendments to its bylaws and the election of new board members, reflecting its commitment to governance and developing internal policies. The company continues to expand its operations in the health and group insurance sector, focusing on innovation and meeting changing market demands.

You can follow news and performance of Al Rajhi Cooperative Insurance through several reliable sources, primarily the Tadawul platform, which provides real-time data on stock prices, trading volumes, and periodic disclosures. The company's official website publishes detailed annual and quarterly financial reports, announcements of general assemblies, and dividend distributions. The Saudi Capital Market Authority provides regulatory disclosures and information on governance and best practices. Specialized financial analyses are available through platforms like Argaam Capital and economic news websites, making it easier for interested parties to continuously and reliably follow the company's and sector's developments.