SAMA is considered one of the prominent companies in the Takaful and cooperative insurance sector in the Kingdom of Saudi Arabia, playing a vital role in meeting the growing needs of individuals and businesses for insurance services. With the ongoing population growth, legislative changes, and increasing awareness of the importance of insurance, SAMA stands out as a key player in this expanding sector. The company focuses on providing a diverse range of products including health insurance, life insurance, and accident insurance, benefiting from government regulations that enhance transparency and stability in the Saudi financial market. In this article, we will review the key financial indicators of SAMA, analyze its quarterly results, its role in the local insurance sector, as well as its main competitors and recent developments. We will ensure to provide neutral and reliable information to help the reader understand SAMA's position in the market without offering any investment recommendations or price forecasts, in compliance with the regulations of the Capital Market Authority. We will also emphasize the importance of consulting a licensed financial advisor before making any investment decisions.
Overview of SAMA and Its Role in the Saudi Financial Market
SAMA was established as a relatively new Saudi joint-stock company and obtained its license from the Saudi Capital Market Authority. It operates under the umbrella of the financial sector, particularly in the Takaful and cooperative insurance sector. The company aims to provide integrated insurance solutions for individuals and businesses, focusing on innovation in products and services. Since its listing on the Saudi financial market (Tadawul), SAMA has contributed to supporting the Saudi government's efforts to enhance financial inclusion and increase insurance coverage rates as part of the Kingdom's Vision 2030. SAMA is committed to applying best practices in governance and transparency and is subject to oversight by the relevant regulatory authorities to ensure compliance with local and international standards.
Insurance Products Offered by SAMA
SAMA's products vary to include health insurance for individuals and companies, car insurance, life insurance, and accident and compensation insurance. The company keeps pace with digital developments by providing electronic services such as issuing and renewing policies online and facilitating claims processes. SAMA aims to meet the needs of a wide range of customers through flexible and integrated insurance packages, focusing on service quality and responsiveness. The company places significant emphasis on developing new products that respond to changes in demand and consumer behavior, enhancing its competitive presence in the Saudi market.
SAMA's Financial Data: A Look at Key Indicators
The price of SAMA's stock is approximately 87.75 SAR per share (October 2025), with an annual trading range between 72.00 and 142.80 SAR. The market capitalization is estimated at around 2.7 billion SAR based on the number of listed shares. The price-to-earnings (P/E) ratio is around 20-25 times, which aligns with the average of the Saudi insurance sector. The cash dividend yield is approximately between 7% and 9%, making it one of the highest yields in the sector. The financial statements for the third quarter of 2024 showed growth in operating revenues and net profits of about 10-15% and 15-20%, respectively, compared to the same period last year. This growth is attributed to the expansion of the customer base and improved investment and liquidity management.
SAMA's Quarterly Results and Revenue and Profit Growth
In the third quarter of 2024, SAMA reported strong financial performance, with operating revenues increasing by 10-15% compared to the third quarter of 2023. The company's net profits also recorded an annual increase estimated at 15-20%. This growth reflects the effectiveness of the company's strategies in expansion, product development, and risk management improvement. The quarterly financial results show stable profit margins, as SAMA benefits from controlling operating costs and increasing investment returns, positioning it strongly among sector companies.
Analysis of the Insurance Sector in Saudi Arabia
The Saudi insurance sector is considered one of the vital sectors, driven by population growth, increasing demand for health services, and government development programs. The sector has witnessed continuous growth in recent years, driven by mandatory insurance requirements, especially in health insurance and vehicle insurance. All insurance companies are subject to the supervision and regulation of the Capital Market Authority and the Saudi Arabian Monetary Authority (the Saudi central bank), ensuring the application of strict standards for financial solvency and operational quality. Recent regulations, such as the implementation of International Financial Reporting Standards (IFRS 17), have also contributed to enhancing transparency and financial stability in the sector.
SAMA's Main Competitors in the Saudi Market
SAMA faces strong competition from prominent companies such as Tawuniya Insurance, Malath Insurance, Walaa Insurance, Medgulf, National Insurance Company, and Bupa Arabia. These companies are characterized by wide distribution, diverse products, and large market shares in health, vehicle, and life insurance. Competition relies on service quality, claims processing speed, pricing, and the availability of digital services. Investment strategies and alliances also play an important role in enhancing each company's competitiveness within the sector.
SAMA's Developments and Key News in 2024-2025
SAMA has witnessed several important developments during 2024 and 2025, including the publication of regular quarterly financial results, the expansion of its digital services, and participation in regulatory workshops with the Capital Market Authority. The company has also focused on developing its technical infrastructure and launching initiatives to improve customer experience and claims processing speed. SAMA did not record any acquisitions or significant expansions during this period but continued to strengthen its presence through investor awareness campaigns and sector conferences. There is an increasing interest from major investors and investment funds in following the company's news and stock movements.
Regulation and Oversight: The Role of the Capital Market Authority in the Insurance Sector
SAMA operates under the supervision of the Capital Market Authority and the Saudi Arabian Monetary Authority, adhering to governance and transparency rules in disclosing its financial results. Regulatory authorities impose strict capital requirements and emphasize compliance with international accounting standards, enhancing sector stability and protecting the rights of policyholders and shareholders. Regulatory authorities also rely on periodic inspection mechanisms to ensure the solvency of companies and manage risks associated with insurance activities, especially with the introduction of new products and rapid market changes.
SAMA's Digital Transformation Strategies and Service Development
SAMA is keeping pace with digital transformation by developing electronic platforms and dedicated applications for customers, allowing for the issuance and renewal of policies and electronic claims submission. The company aims to enhance customer experience, reduce operational costs, and speed up post-sale service cycles. This strategy contributes to attracting a segment of youth and professionals, enhancing internal operational efficiency and the company's responsiveness to market changes. These transformations also support the goals of the Kingdom's Vision 2030 in digitizing the financial and insurance sector.
Analysis of Earnings Per Share and Dividends at SAMA
The estimated cash dividend yield for SAMA's stock is between 7% and 9% annually, placing it among the companies with attractive yields in the Saudi insurance sector. This yield depends on the company's dividend distribution policies, annual profits achieved, and the stock price in the market. It is noted that the company has followed a consistent approach in distributing a portion of its profits to shareholders, considering the needs for expansion and strengthening working capital. Investors can follow official announcements regarding dividend distributions through the Tadawul platform and the company's website.
SAMA's Stock Performance and Annual Price Range Analysis
The price of SAMA's stock has ranged between 72.00 and 142.80 SAR over the past twelve months, with the current closing price at 87.75 SAR. This fluctuation reflects the stock's sensitivity to general market factors, sector performance, and the company's quarterly results. The annual performance of the stock shows a decline of approximately 38% from its highest levels during the year, reflecting market dynamics and changes in investor expectations. The company continues to attract investor interest, especially with its improved financial results and ongoing service development.
Revenue and Profit Growth Amid Sector Transformations
SAMA has witnessed an annual growth in revenues and net profits exceeding 10% in 2024 compared to 2023. This growth is attributed to the company's expansion in insurance products, an increase in the customer base, and improved efficiency in risk and investment management. The company also benefited from the rise in written premiums in the Saudi insurance sector, which grew by 12% in 2024 according to official reports. These indicators demonstrate SAMA's ability to adapt to sector changes and capitalize on available opportunities.
Risks and Challenges Facing the Insurance Sector and SAMA
The insurance sector in Saudi Arabia faces challenges related to fluctuating interest rates and the increased likelihood of claims, especially in health and vehicle insurance. Intense competition also puts pressure on profit margins. SAMA is addressing these challenges by developing new products, improving risk management, and diversifying its investment portfolio. Regulatory and legislative changes remain a risk factor; however, SAMA's commitment to governance and transparency helps maintain its financial and operational stability.
Sector Outlook and Public Policies Affecting SAMA's Performance
Current trends indicate continued growth in the insurance sector in Saudi Arabia, driven by national transformation programs and mandatory coverage for many services. Government policies aim to enhance financial inclusion and expand the insured base through health and retirement initiatives. SAMA is expected to benefit from these policies in strengthening its market share, especially with its adoption of digital transformation and the development of innovative products that meet changing market needs. The company remains committed to implementing regulatory directives and adapting to economic changes to ensure continued growth.
Conclusion
SAMA exemplifies Saudi companies that combine innovation in insurance products with a commitment to strict regulatory standards. The company has shown stable financial performance over the past two years, with growth in revenues and net profits, and an attractive dividend yield for shareholders. This performance strengthens SAMA's position in the cooperative insurance sector, which is experiencing high competitiveness and rapid growth due to government policies and regulatory support. It is important to emphasize that the information provided in this article is intended for awareness and analysis only and does not represent investment advice or a stock price forecast. For more specialized analysis or to make any investment decisions regarding SAMA's stock or any companies in the sector, it is always advisable to consult a licensed financial advisor. The SIGMIX platform offers the latest information and analyses on Saudi companies to support investors' decisions in the financial market.
Frequently Asked Questions
SAMA operates in the Takaful and cooperative insurance sector, offering a wide range of insurance products such as health insurance, vehicle insurance, life insurance, and accident insurance. The company serves both individuals and businesses and seeks to develop innovative solutions that meet the changing needs of the Saudi market. SAMA adopts a modern digital strategy that facilitates customers in obtaining insurance services and managing their policies electronically.
The current price of SAMA's stock is approximately 87.75 SAR according to the latest data from October 2025. Over the past twelve months, the stock price has ranged between 72.00 and 142.80 SAR, reflecting notable fluctuations in its annual performance due to market and sector changes. Daily prices and detailed changes can be followed through the Tadawul platform.
The price-to-earnings (P/E) ratio for SAMA's stock ranges between approximately 20 and 25 times, which is an average rate among insurance companies in the Saudi market. The cash dividend yield is estimated to be between 7% and 9% annually, considered a good rate in the sector. The actual yield depends on the company's dividend distribution policy and market conditions.
SAMA recorded a growth in operating revenues of 10-15% and net profits of 15-20% in the third quarter of 2024 compared to the third quarter of 2023. This performance reflects the company's expansion in its customer base, product development, and improved investment management, contributing to stable profit margins.
SAMA's estimated market capitalization is around 2.7 billion SAR, based on the current stock price and the estimated number of issued shares, which is approximately 31 million shares. The market capitalization changes with fluctuations in the stock price and the number of issued shares, and accurate figures can be verified through the official Tadawul platform.
SAMA competes with major companies such as Tawuniya Insurance, Malath Insurance, Walaa Insurance, Medgulf, National Insurance Company, and Bupa Arabia. These companies hold significant market shares and offer diverse products, making competition based on service quality, claims processing speed, and the variety of insurance offerings.
The main challenges include fluctuating interest rates, increased likelihood of claims especially in health and vehicle insurance, and competitive pressures on pricing and profit margins. Continuous adherence to regulatory standards and changing government policies are also influencing factors. SAMA is addressing these challenges by diversifying its products and improving risk management.
SAMA has witnessed strong quarterly financial results, expanded its digital services through electronic applications, and participated in regulatory workshops with oversight authorities during 2024-2025. The company has focused on improving customer experience and speeding up claims processes without announcing significant acquisitions or expansions.
Government policies play a key role in the growth of the insurance sector by imposing mandatory coverages such as health insurance and vehicle insurance. Regulatory authorities ensure the application of governance and transparency standards and impose strict capital requirements to ensure the stability of companies and the safety of shareholders' and customers' rights.
With the continuation of national transformation programs and increasing demand for insurance products, SAMA is expected to continue its growth benefiting from digital transformation and product development. However, actual performance remains contingent on the company's ability to adapt to competition, market changes, and adherence to regulatory directives.
You can follow SAMA's news and results through the Tadawul platform, the company's official website, and financial news platforms such as Argaam. The company issues quarterly financial statements and periodic reports that allow investors to stay updated on recent developments in financial and operational performance.
This article does not provide any investment advice or recommendations to buy or sell SAMA's stock or any other security. All information provided is intended for awareness and analysis only. It is advisable to consult a licensed financial advisor before making any investment decisions.