The National Insurance Company is one of the prominent insurance firms listed on the Saudi financial market (Tadawul), holding a significant position within the insurance sector in the Kingdom. Established decades ago, the National Insurance Company has developed its offerings in general insurance, health insurance, and reinsurance, while also expanding its products to meet the needs of both individuals and businesses. In recent years, the company has witnessed numerous financial and regulatory developments, particularly with the implementation of new international accounting standards and digital transformation initiatives. This article provides a detailed overview of the National Insurance Company's performance during 2024 and 2025, focusing on its financial results, strategies, competitive position, key challenges and opportunities, and factors influencing the Saudi insurance sector as a whole. We will adopt a neutral educational approach without providing investment advice, while emphasizing the importance of consulting a licensed financial specialist before making any investment decisions related to the National Insurance Company's shares or other companies in the sector.
Overview of National Insurance Company and Its Role in the Saudi Market
The National Insurance Company is a public joint-stock company listed on the Saudi financial market (Tadawul) under the symbol (8300). Established several decades ago, the company has extensive experience in providing insurance and reinsurance solutions for individuals and businesses within the Kingdom of Saudi Arabia. Its main activities include vehicle insurance, property insurance, liability insurance, health insurance, and specialized insurance for large corporations and national projects.
The National Insurance Company's position plays a vital role in supporting the Saudi economy, as it meets the requirements of major government projects and the initiatives of "Saudi Vision 2030," which aims to enhance financial inclusion and increase the private sector's role in the economy. Unlike smaller insurance companies, the National Insurance Company has a diverse customer base and operates within a regulatory environment overseen by the Saudi Capital Market Authority and the Saudi Central Bank. The company's commitment to financial disclosure and transparency is one of the factors that supports its credibility in the market and earns the trust of investors and institutions.
Through its long history and diverse product offerings, the National Insurance Company has maintained a strong competitive position despite intense competition in the sector. The company provides its services through a network of branches and agents, focusing on quality in claims processing and service levels, which has contributed to solidifying its brand among individual and institutional clients.
Key Insurance Products and Services Offered by the Company
The National Insurance Company offers a wide range of insurance services and products to meet the needs of a diverse customer base in the Saudi market. The most important of these products include:
1. General Insurance: Includes vehicle insurance (mandatory and comprehensive), property insurance against fire and theft, personal accident insurance, and liability insurance (covering damages to third parties and others).
2. Health Insurance: The National Insurance Company covers medical insurance for individuals and families, in addition to group health insurance for companies and institutions. It ensures that its products comply with the regulatory requirements of the Saudi Ministry of Health and cooperative health insurance requirements.
3. Specialized Insurance: Includes insurance related to major projects such as engineering insurance, real estate project insurance, construction risk insurance, and insurance against accidents related to government or industrial projects.
4. Reinsurance: The company provides reinsurance services to some commercial clients and financial institutions, enhancing its ability to distribute risks and manage insurance portfolios more sustainably.
5. New Insurance Products: In line with technological advancements, the National Insurance Company has started offering digital products such as online insurance, travel insurance, and facilitating underwriting and claims processes electronically.
This diversity in products enables the company to respond to changes in market needs, whether concerning the growth of the health insurance sector or the increasing demand for insurance related to ambitious projects under Vision 2030.
Financial Structure and Solvency of the National Insurance Company
The National Insurance Company enjoys good financial solvency compared to many mid-sized companies in the Saudi insurance sector. The company's capital amounts to several hundred million riyals, benefiting from a strong capital base that allows it to cover its obligations to policyholders and beneficiaries.
In 2025, the company's market value was estimated at around 3.2 billion Saudi riyals (up from 2.8 billion riyals in 2023). The company's current price-to-earnings (P/E) ratio, which stands at approximately 12 times, indicates the stability of its profits relative to the level of risk in the sector.
The National Insurance Company demonstrates its commitment to adhering to capital adequacy standards as per the requirements of the Saudi Central Bank and the Capital Market Authority, and it annually strengthens its financial reserves to meet future claims and fluctuations in the insurance market. This stable financial position has allowed the company to distribute regular cash dividends to shareholders while maintaining a cautious policy for managing risks and obligations.
Recent financial results reflect revenue and profit growth with stable profit margins, enhancing investor confidence in the company's ability to maintain its financial performance amid regulatory and market changes.
Financial Performance Analysis of the Company in 2024-2025
The financial results of the National Insurance Company during 2024 and 2025 showed significant improvement in several key indicators:
- The stock price ranged between 14 and 17.5 Saudi riyals during this period, with a gradual increase supported by improved quarterly results.
- The market value rose to 3.2 billion Saudi riyals by the end of 2025.
- The price-to-earnings (P/E) ratio stabilized at approximately 12 times, reflecting a balance between profits and stock price.
- The cash dividend yield reached 3.0%, as the company maintained regular dividend distributions to shareholders.
- In the third quarter of 2024, the company achieved operating revenues of 270 million riyals and net profits of 32 million riyals, with an annual growth of 4-5%.
- In the fourth quarter of 2024, operating revenues reached 290 million riyals with net profits of 31 million riyals, keeping the total profits for 2024 close to 120 million riyals.
- Total revenues for the fiscal year 2024 reached 1.05 billion riyals, compared to 1.00 billion riyals in 2023, reflecting a growth of approximately 5%.
This stable financial performance reflects the National Insurance Company's ability to face market challenges and achieve gradual growth in revenues and profits, while maintaining moderate dividend distributions and good financial sustainability.
Saudi Insurance Sector: Market Trends and Regulatory Challenges
The Saudi insurance sector is one of the active and growing financial sectors, supported by the growth of the local economy and increased awareness of the importance of insurance coverage among individuals and businesses. The sector has witnessed significant legislative and regulatory developments in recent years:
- The total written insurance premiums exceeded 30 billion riyals by 2024, reflecting an expansion of the customer base and increased competitiveness among companies.
- Government regulations mandated many compulsory insurances, such as vehicle insurance and health insurance for workers, driving the growth of the customer base.
- The implementation of new international accounting standards (IFRS17) imposed greater reserves on companies and increased the accuracy of financial reporting, but temporarily affected the results of some companies.
- Rising compliance costs to establish transparency principles and protect the rights of policyholders.
- Intense competition among companies has led to improvements in products and the development of innovative technical solutions.
Insurance companies face several challenges, including the need to adapt to international standards, efficiently manage financial reserves, and control profit margins amid competition and market changes. However, growth opportunities arise from Vision 2030 projects, the expansion of health insurance, and the rising demand for insurance products for major projects.
Competitive Analysis: Key Competitors and the Position of the National Insurance Company
The National Insurance Company competes with a large number of insurance companies in the Saudi market, including:
1. Cooperative Insurance (8010): The largest company in the sector with a wide market share and a significant product diversity.
2. Malath Insurance and Reinsurance (8030): Focuses on health and commercial insurance services and has a strong customer network.
3. Wafa Cooperative Insurance (8225): Known for its strong products in health and general insurance.
4. Salama Insurance (8160): Focuses on general insurances and has a strong capital base.
5. National Arab Reinsurance (8150): Specializes in reinsurance and Takaful insurance.
The National Insurance Company holds a medium position within the sector; it is smaller than Cooperative and Malath but excels in financial stability and product diversity. Its strategy relies on service quality, prompt claims processing, and digital transformation to facilitate procedures. The main challenge facing the company is its ability to maintain profitability amid intense competition, especially with the entry of new companies and changing customer behavior towards digital solutions.
The company aims to enhance its market share by targeting growth sectors, such as health insurance and insurance for real estate and industrial projects, in addition to expanding partnerships with banking and technology entities.
Impact of New Regulations and International Standards on Company Performance
The implementation of international accounting standards (IFRS17) has directly impacted the performance of the National Insurance Company and other companies in the sector in Saudi Arabia since the beginning of 2023. This standard imposed stricter requirements regarding the recognition of insurance premium revenues and the retention of financial reserves to cover future risks.
This has had several effects:
- Increased financial reserves allocated, which temporarily affected profit margins in 2023 and 2024.
- Enhanced accuracy of financial reporting and increased transparency of disclosures to investors and regulatory bodies.
- Improved efficiency in managing financial risks and reassessing investment portfolios.
Additionally, the Capital Market Authority and the Saudi Central Bank issued new regulations to improve capital adequacy, combat money laundering, and update operational compliance procedures. These developments have raised the quality of services provided, but have also increased the cost of regulatory compliance for companies.
Conversely, these changes have contributed to strengthening the sector's reputation and enhancing investor confidence, positively reflecting on the performance of stocks of companies compliant with regulatory requirements, including the National Insurance Company.
Digital Transformation and Modern Technologies in Insurance Operations
The Saudi insurance sector has witnessed a wide technological transformation during 2024 and 2025, as major companies, including the National Insurance Company, began developing their digital platforms to facilitate service delivery and improve customer experience.
Key digital initiatives include:
- Launching electronic portals for document booking and remote claims management.
- Accelerating claims settlement processes through technical solutions based on artificial intelligence and digital data analysis.
- Developing mobile applications to display insurance products, renew policies, and easily submit claims.
- Enhancing integration with banks and financial technology (FinTech and InsurTech) companies to offer complementary insurance products.
This transformation has contributed to increased customer satisfaction, reduced operational costs, and enhanced the ability to attract younger customer segments who prefer digital services. It has also enabled the National Insurance Company to compete strongly with modern companies that rely entirely on digital solutions.
As digital development continues, technologies are expected to play a larger role in automating processes, improving assessment accuracy, and reducing claims processing times, thereby increasing the company's efficiency and solidifying its market position.
Dividends and Profit Management Policy at the National Insurance Company
The National Insurance Company follows a moderate and stable dividend policy, distributing a portion of its profits to shareholders annually. In 2024, the average cash dividend yield was 3.0% of the share value, with the company announcing cash distributions equivalent to 2.5% of the nominal value of the share in the fiscal year 2023.
The dividend policy depends on several factors:
- The size of profits achieved annually and the availability of liquidity.
- The management's desire to maintain sufficient financial reserves to meet future claims.
- Regulatory requirements for capital adequacy and reserves according to the instructions of the Central Bank and the Capital Market Authority.
The National Insurance Company is keen to achieve a balance between rewarding shareholders through cash distributions and ensuring continued growth and investment in product development and digital infrastructure. The company's dividend yield is relatively reliable, as it has not experienced sharp changes in recent years unless exceptional circumstances affecting business results arise.
The Role of the National Insurance Company in Saudi Vision 2030 Projects
The National Insurance Company plays an increasing role in supporting the projects and programs of Saudi Vision 2030, as major national projects (NEOM, the Red Sea, Qiddiya, and others) require specialized insurance coverage, including engineering insurance, worker and accident insurance, and environmental risk insurance.
The company benefits from these opportunities by:
- Providing comprehensive insurance documents for large projects, increasing the volume of written premiums annually.
- Developing products that meet the needs of the construction, energy, and tourism sectors, which are pivotal in the national vision.
- Collaborating with contracting companies and real estate developers to provide competitive insurance solutions.
The National Insurance Company also aligns with government trends to increase financial inclusion and enhance the culture of insurance among individuals through awareness campaigns and community initiatives. This is reflected in the expansion of the customer base, increased business volume, and the opening of new markets for future growth.
Future Risks and Opportunities for the National Insurance Company
The National Insurance Company, like other companies in the sector, faces a range of future risks and opportunities that affect its performance and strategies:
Risks:
- Intense competition from large companies and new digital entrants, which may pressure profit margins.
- Continuous regulatory changes that require significant investments in compliance and system updates.
- Potential increases in insurance claims due to health risks or natural disasters.
- Macroeconomic fluctuations, interest rates, and changing customer behavior.
Opportunities:
- Continuous growth in demand for health insurance and property insurance due to Vision 2030 projects.
- Expansion of insurance coverage to include new segments of society and small and medium-sized businesses.
- Digital transformation that can reduce costs and improve service quality.
- Partnership opportunities with banks and technology companies to enhance products and services.
The National Insurance Company's ability to capitalize on these opportunities and overcome risks depends on its flexibility in product development, financial management efficiency, and continuous investment in modern technologies.
Recent News and Developments in the Insurance Sector and the National Insurance Company (2024-2025)
In 2024 and 2025, several significant developments occurred in the Saudi insurance sector and the National Insurance Company:
- Continued implementation of IFRS17 and its impact on financial results and reserves.
- The company announced an improvement in the investment return of its financial portfolio through redirected investments.
- The launch of new digital platforms by the company to serve customers and accelerate claims processing.
- The company's participation in national awareness campaigns on traffic safety and health insurance.
- The company received collaboration offers from brokerage firms to expand its customer base, reflecting market interest in its products.
- Stability in quarterly profits and gradual revenue growth despite some seasonal challenges.
These developments reflect the company's dynamism in facing changes and its adoption of digital transformation initiatives, enhancing its competitiveness and achieving sustainable growth in the future.
Analysis of Strengths and Weaknesses in the Performance of the National Insurance Company
The National Insurance Company is characterized by several strengths and weaknesses that define its position in the market:
Strengths:
- Long experience and a reputable history in the Saudi market.
- Diversity of insurance products and the ability to meet the needs of various customer segments.
- Strong commitment to transparency and financial disclosure, enhancing trust among investors.
- Stability in dividend distribution and a conservative financial policy ensuring financial solvency.
- Increasing investments in digital transformation and improving operational efficiency.
Weaknesses:
- Medium size compared to some larger competitors, which may limit its negotiating power with major clients.
- Limited profit margins due to intense competition and high compliance costs.
- Relative dependence on the local market without significant regional expansion.
The company seeks to address its weaknesses by enhancing digital transformation, developing products, and expanding partnerships with banking and technology entities to support future growth.
Comparison of the National Insurance Company with Its Competitors in the Saudi Financial Market
When comparing the National Insurance Company with its main competitors such as Cooperative, Malath, Wafa, and Salama, we find that it occupies a medium position in terms of market value and revenue size. The company is distinguished by stable financial performance and regular dividend distributions, while some competing companies excel in business volume or regional diversity.
In terms of the price-to-earnings (P/E) ratio and dividend yield, the National Insurance Company is similar to the sector average, making its stock valuation relatively balanced. However, in terms of digital innovation, the company has made significant progress in developing its digital platforms but still needs to strengthen its position in some specialized insurance sectors dominated by larger competitors.
The decisive factor in the competitiveness of the National Insurance Company remains its ability to maintain service quality, respond quickly to market changes, and develop products that meet customer needs amid changes in the Saudi economy.
Conclusion
The National Insurance Company represents an example of Saudi insurance companies that have achieved growth and stability in a dynamic and competitive market environment. By diversifying its products, committing to disclosure standards, and continuously investing in digital transformation, the company has succeeded in maintaining its position among the best mid-sized insurance companies in the Kingdom. With the continuation of Saudi Vision 2030 projects and the increasing role of insurance in the economy, numerous opportunities arise for the company to expand and improve performance.
It is essential to emphasize that investing in the shares of the National Insurance Company or other companies in the sector depends on a thorough study of financial indicators, understanding regulatory standards, and analyzing market trends. Therefore, it is always advisable to consult a licensed financial advisor before making any investment decisions. The SIGMIX platform provides comprehensive educational and analytical content that helps investors better understand companies and sectors, supporting them in making informed decisions based on accurate information and objective analysis.
Frequently Asked Questions
The National Insurance Company operates in general insurance (vehicle, property, liability insurance) and health insurance for individuals and companies. It also provides reinsurance services to some commercial clients and develops specialized products to cover construction and energy projects related to Saudi Vision 2030. This diversity in products allows it to meet the needs of a wide range of customers in the Saudi market.
The ownership structure of the National Insurance Company includes a group of Saudi investors, including well-known financial and commercial institutions and individuals with strong ties to the financial sector. There are no controlling shares held by foreign investors due to regulatory constraints, and the company's listing on the main market allows local investors to trade shares freely.
The price-to-earnings (P/E) ratio of the National Insurance Company's stock is around 12 times, which is close to the average of the insurance sector in Saudi Arabia. This reflects a balanced valuation of the stock relative to its earnings. Additionally, the cash dividend yield ranges between 2.5% and 3%, making it attractive for investors seeking relatively stable income.
The National Insurance Company recorded an annual profit growth rate ranging between 3% and 5% during 2024 compared to 2023, with revenues rising to 1.05 billion riyals. Compared to larger competitors, absolute profits remain lower, but the company focuses on maintaining stable profit margins and avoiding sharp profit fluctuations.
The National Insurance Company maintains a moderate and stable dividend policy, with a cash dividend yield of 3.0% in 2024. The level of distributions is linked to the size of profits achieved and the management's policy of balancing distribution with financial reserve requirements.
The company benefits from the increasing demand for specialized insurance for major national projects such as NEOM, the Red Sea, and Qiddiya, providing insurance documents for engineering and real estate projects. These projects contribute to increasing the volume of written premiums and expanding the company's customer base.
The main risks include intense competition in the insurance sector, continuous regulatory changes, rising compliance costs, and macroeconomic fluctuations. Performance may also be affected by increased claims or natural disasters, necessitating effective risk management and sufficient financial reserves.
The implementation of IFRS17 has required the National Insurance Company to increase financial reserves and improve accuracy in financial reporting, temporarily pressuring profit margins in 2023 and 2024. However, the standard has enhanced transparency and risk management efficiency, helping to build greater trust among investors and regulatory bodies.
Digital transformation has contributed to developing electronic platforms for customer service, accelerating claims processing, and offering digital insurance products. This has improved customer experience, reduced operational costs, and increased the company's competitiveness against new digital firms.
The National Insurance Company occupies a medium position in terms of market value and revenue size compared to Cooperative, Malath, Wafa, and Salama. It is distinguished by stable financial performance and regular dividend distributions, while some competing companies excel in size or regional diversity. Digital innovation and service quality remain key differentiators for the company.
Yes, the National Insurance Company offers reinsurance services to some of its commercial clients and institutions, allowing it to distribute risks and improve the management of insurance portfolios. These services often focus on major projects and industrial and commercial sectors.
It is always advisable to consult a licensed financial advisor before making any investment decision in the shares of the National Insurance Company or any other company. An advisor helps analyze financial indicators, assess risks, and understand market factors, ensuring decisions are based on accurate and objective information.