AXA Cooperative is one of the leading cooperative insurance companies in the Kingdom of Saudi Arabia, holding a prominent position in a rapidly growing insurance sector supported by Vision 2030. The company offers a diverse range of health insurance, vehicle insurance, and property insurance products, adhering to Islamic Sharia principles in all its operations. Since its listing on the Saudi financial market (Tadawul) under the symbol 6621, AXA Cooperative has attracted the attention of investors and stakeholders in the insurance sector, especially with its strong financial performance and strategic transformations in recent years.
In this article, we will provide a detailed analysis of AXA Cooperative, including a review of recent financial data, key performance indicators, cash distributions, its position in the Saudi insurance sector, factors influencing its growth, and an analysis of its key competitors. We will also highlight the challenges and future opportunities facing the company amid regulatory and economic developments. This analysis aims to provide the reader with a comprehensive and objective view of AXA Cooperative's performance without offering any investment advice, emphasizing the importance of consulting a licensed financial advisor before making any financial decisions.
Overview of AXA Cooperative and Its History in the Saudi Market
AXA Cooperative was established as a closed joint-stock company before transforming into a public joint-stock company and listing on the Saudi financial market (Tadawul) in 2021. Since then, the company has continued to grow and expand its offerings of cooperative insurance services compliant with Islamic Sharia.
AXA Cooperative is characterized by its extensive geographical presence through numerous branches across the Kingdom, alongside its increasing reliance on digital channels to market and sell its products. The company is supervised by the Saudi Arabian Monetary Authority and the Capital Market Authority, providing a supportive regulatory environment for its business stability.
AXA plays a pivotal role in supporting the Vision 2030 strategy, which focuses on developing the insurance sector and increasing its contribution to the national economy by raising the insurance coverage ratio and expanding the base of beneficiaries from various insurance services.
Insurance Products and Services Offered by AXA Cooperative
AXA Cooperative offers a wide range of insurance products including health insurance for individuals and companies, vehicle insurance, property insurance, accident insurance, and limited reinsurance programs. The company's products are distinguished by their diversity and flexibility, allowing coverage of the needs of a broad customer segment.
Health and vehicle insurance products have seen increasing demand in recent years due to government policies mandating health insurance for expatriates and vehicle insurance for all drivers. Additionally, the company recently launched new products such as travel health insurance and digital insurance services to meet customer requirements in the digital age.
AXA Cooperative adheres to high standards in customer service, utilizing advanced electronic platforms for managing documents and claims, which accelerates compensation processes and enhances customer satisfaction. According to an internal survey in 2024, customer satisfaction with AXA's services reached approximately 85%.
Organizational Structure, Governance, and Compliance with Islamic Sharia
AXA Cooperative is committed to a cooperative insurance system compliant with Islamic Sharia, where funds are managed in a joint fund, and the company follows investment policies that align with Sharia provisions, supervised by an internal Sharia committee.
Organizationally, the company adheres to the requirements of the Saudi Arabian Monetary Authority and the Capital Market Authority, and it has integrated International Financial Reporting Standards (IFRS 17) into its accounting systems to improve transparency and governance. In 2024, AXA enhanced its corporate governance practices, positively impacting investor and shareholder confidence.
The company has clear policies for separating management from the board of directors and is committed to regular disclosures of its financial results and key developments, enhancing transparency and reassuring investors about the soundness of its operations.
Recent Financial Results: Operational Performance and Profitability
AXA Cooperative witnessed significant growth in its financial results for 2024. Total written premiums for the first half of 2024 reached approximately 350 million SAR, compared to 300 million SAR in the same period of 2023, reflecting a growth rate of nearly 17%. Net profit for the first half of 2024 rose to 25 million SAR compared to 20 million SAR in the first half of 2023, with a growth rate exceeding 25%.
For the full fiscal year 2024, operating profits exceeded 50 million SAR, and net profits jumped by approximately 20% to between 50 and 55 million SAR. This growth is attributed to the expansion of the customer base, increased sales of health and vehicle insurance, and improvements in risk management and investment in financial assets.
Data from the first quarter of 2025 indicates a continued positive trend with additional growth in written premiums of 5-7% compared to the same period in 2024, with stable profit margins.
Key Financial Performance Indicators for AXA Cooperative Stock
Analyzing financial indicators is essential for understanding the performance of AXA Cooperative stock. By mid-2024, the stock price ranged between 45-50 SAR, while the company's market capitalization reached approximately 2.3 billion SAR.
The price-to-earnings (P/E) ratio at the end of 2024 was around 8-9 times, which is considered appropriate for the insurance sector and reflects good profitability levels compared to several competitors whose P/E ratios exceeded 12-15 times.
Regarding cash distributions, the company recommended a dividend payout of 15-20% of capital for the year 2023 (i.e., 0.15-0.20 SAR per share), and shareholders approved the recommendation at the 2024 annual general assembly meeting. Market expectations indicate a potential increase in distribution rates in 2025 if the company's strong performance continues.
Analysis of the Saudi Insurance Sector and AXA Cooperative's Position
AXA Cooperative operates within the Saudi insurance sector, which is experiencing continuous growth driven by rapid population growth, increased government spending, and the expansion of mandatory insurance coverage. By the end of 2023, the total written premiums in the cooperative sector reached approximately 18 billion SAR, with an annual growth rate of nearly 10%.
The insurance penetration rate in the Kingdom is about 3% of GDP, with expectations to reach 5-6% in the coming years according to Vision 2030. AXA Cooperative contributes to this growth by developing innovative products and expanding its customer base in health and vehicle insurance.
The company enjoys strong support from its global parent group (AXA), giving it a competitive advantage in transferring international expertise and developing local products. Additionally, AXA relies on digital transformation to provide more accessible and effective insurance services.
Key Competitors of AXA Cooperative
AXA Cooperative faces strong competition from major insurance companies listed in the Saudi market, such as Cooperative Insurance (8030), Bupa Arabia (8080), MedGulf (8005), and Walaa Insurance (8230). These companies are characterized by high market shares, extensive sales networks, and diverse products.
AXA competes with these companies in providing health, vehicle, and property insurance, often relying on service quality, claim settlement speed, and product pricing. There are also medium and small-sized companies focusing on specialized sectors such as industrial insurance or small business insurance.
AXA's competitive advantage lies in integrating international expertise with a deep understanding of the local market, along with its reliance on advanced digital channels and high customer satisfaction rates.
Growth Strategy and Digital Expansion at AXA Cooperative
AXA Cooperative aims to enhance its market position through a multi-faceted growth strategy. This strategy for 2024-2025 includes expanding digital products, developing mobile applications, and launching electronic insurance solutions targeted at small businesses and entrepreneurs in collaboration with local InsurTech companies.
The company focuses on reducing administrative costs and increasing operational efficiency through digital transformation, which has reflected in improved profit margins and accelerated claims processes. AXA also intends to expand into innovative insurance products such as travel insurance, in response to the growing demand from new customer segments.
Digital transformation is a strategic priority for the company, as it helps attract the younger generation, enhances accessibility to services, and raises customer satisfaction levels.
Cash Distributions and Profit Policy of AXA Cooperative
AXA Cooperative follows a flexible profit distribution policy that considers shareholder interests and sustainable growth. In 2023, the company distributed cash dividends of 15-20% of capital (0.15-0.20 SAR per share), with dividends paid at the end of the first quarter of 2024.
The company's management bases its recommendations on annual financial performance, profitability rates, and expansion and investment needs. In light of the positive financial results for 2024, financial markets expect the company to increase its cash distribution ceiling for 2025, noting that the final percentage depends on the ordinary general assembly's decision after announcing the annual financial results.
This policy provides the company with flexibility to support growth plans while also offering a reasonable return to shareholders seeking stable income.
Technical Analysis of AXA Cooperative Stock and Price Development
Since its listing on the Saudi financial market (Tadawul), AXA Cooperative's stock has experienced a moderate upward trajectory with medium volatility reflecting the dynamics of the insurance sector. By mid-2024, the stock price ranged between 45 and 50 SAR, supported by profit growth and improved financial indicators.
Liquidity levels for the stock are moderate, reflecting investor interest in the insurance sector in general and AXA stock in particular. The stock exhibits relative stability compared to some more volatile sector stocks, making it a point of interest for investors looking to gain exposure to the insurance sector without risking high fluctuations.
It is important to monitor future developments in the stock price and link them to the company's results and sector news, emphasizing the necessity of consulting a financial advisor before making any investment decisions.
Challenges and Future Opportunities for AXA Cooperative
The Saudi insurance sector, in general, and AXA Cooperative, in particular, face several challenges such as intense competition, high solvency and liquidity requirements, and changes in the regulatory environment, especially with the implementation of IFRS 17. Continuous innovation in products and responsiveness to changing customer expectations also pose an additional challenge.
Opportunities include population growth, expanding mandatory insurance coverage, increasing large government projects, and the entry of tourism and foreign investment as a new market for insurance services. Additionally, digital transformation offers significant opportunities to enhance efficiency and expand market share.
In the medium term, the sector is expected to benefit from stable oil prices and increased government spending, which could positively reflect on the results of leading companies like AXA Cooperative.
Social Responsibility and Sustainability Initiatives at AXA
AXA Cooperative places increasing importance on social responsibility and sustainability, having launched several awareness initiatives about health insurance in Saudi schools and universities, and participated in green investment programs in coordination with national initiatives.
The company has integrated environmental and social sustainability standards into its investment policies, enhancing its appeal to local and foreign investors interested in environmental and social governance.
AXA aims to achieve a balance between profitability and fulfilling its community role, in harmony with global sustainability principles and sound governance standards.
How to Monitor AXA Cooperative's Performance and Key Information Sources
AXA Cooperative provides quarterly and annual financial reports published on its official website, in addition to periodic disclosures on the Capital Market Authority's website and the Tadawul website. Investors can follow the latest company news and analyze its results through accredited news sites such as 'Argaam' and reports from the insurance regulatory authority.
The company also provides brief financial newsletters and stock performance tracking on its official Tadawul page, where all disclosures related to AXA Cooperative stock (symbol 6621) can be accessed. These sources are essential references for those wishing to monitor the company's developments and make decisions based on accurate and transparent data.
General Investment Tips in the Saudi Insurance Sector
The Saudi insurance sector is a dynamic field experiencing continuous growth and changes driven by government regulations, digital transformation, and changing customer needs. Before investing in any insurance company, it is important to study financial performance indicators such as return on equity, price-to-earnings ratio, and claims settlement ratio.
Investors should monitor regulatory developments, understand competition dynamics, analyze distribution policies, and rely on reliable information sources when evaluating stocks.
Finally, the Capital Market Authority always emphasizes the importance of consulting a licensed financial advisor before making any investment decision to ensure that the decision aligns with personal financial goals.
Conclusion
In conclusion, this comprehensive analysis of AXA Cooperative and its performance in the Saudi financial market reveals that the company possesses strong fundamentals for future growth under a well-considered expansion strategy, positive financial results, and a good reputation in the cooperative insurance sector. However, competition remains fierce and regulatory changes are ongoing, requiring investors and observers to exercise caution in interpreting performance indicators and continuously monitoring sectoral and economic developments.
It is important to emphasize that this article does not constitute investment advice or a recommendation to buy or sell any security. The SIGMIX platform invites all readers to consult a licensed financial advisor before making any financial or investment decision, stressing the necessity of relying on reliable information sources for market and listed company analysis. Follow SIGMIX for more analyses and reliable data on Saudi stocks and companies.
Frequently Asked Questions
AXA Cooperative's stock is traded on the Saudi financial market (Tadawul) under the symbol 6621. You can follow the stock's performance and all related disclosures on the official Tadawul website, which provides real-time data on price, trading volume, and the company's material announcements.
AXA Cooperative offers a diverse range of insurance products, including health insurance for individuals and companies, vehicle insurance, property insurance, accident insurance, and limited reinsurance products. Recently, it launched digital insurance products and travel health insurance to meet changing customer needs.
AXA Cooperative recorded significant growth in total written premiums in 2024, with a 17% increase compared to the previous year, and net profit rose by over 25%. Operating profits exceeded 50 million SAR, with stable profitability ratios and improvements in risk management and customer base expansion.
AXA Cooperative follows a flexible distribution policy that considers financial performance and growth needs. The company recommended a cash dividend of 15-20% of capital for the year 2023 (0.15-0.20 SAR per share), and distributions are reviewed annually based on final financial results and the shareholders' general assembly decision.
The main competitors are major insurance companies such as Cooperative Insurance (8030), Bupa Arabia (8080), MedGulf (8005), and Walaa Insurance (8230). These companies have high market shares and diverse products, competing with AXA in health, vehicle, and property insurance.
Yes, all of AXA Cooperative's operations comply with Islamic Sharia principles, as it adopts a cooperative insurance system and is subject to supervision by an internal Sharia committee, adhering to Sharia-compliant investments according to the requirements of Saudi regulatory authorities.
The company focuses on digital transformation by developing mobile applications, providing electronic services for document and claim management, and partnering with InsurTech companies to launch new digital insurance products, enhancing customer satisfaction and increasing operational efficiency.
Key indicators include stock price (45-50 SAR in mid-2024), market capitalization (2.3 billion SAR), price-to-earnings (P/E) ratio between 8-9 times, cash distribution rate (15-20%), and annual growth rates of written premiums and net profit, in addition to operational efficiency indicators.
Challenges include intense competition in the sector, high solvency and liquidity requirements, regulatory changes (such as the implementation of IFRS 17), and the need to develop new products and respond quickly to changing customer expectations, especially with rapid digital transformation.
Investors can follow AXA's news and results through the company's official website, the Tadawul website (Stock page 6621), reports from the Capital Market Authority, and reliable news sites like 'Argaam'. The company publishes periodic financial reports and material announcements for all developments.
Yes, AXA Cooperative's stock is among the Saudi stocks that allow foreign ownership of up to 100% according to regulatory guidelines, enhancing the stock's appeal to foreign investors looking to enter the Saudi insurance market.