Saudi Arabia is a term frequently echoed in the world of economics and investment, especially when discussing companies listed on the Saudi financial market (Tadawul). In this context, Waqaya Insurance Company (Waqaya) stands out as one of the leading firms in the insurance sector, playing a vital role in protecting institutions and major projects from unexpected financial risks. Founded to provide reinsurance and Takaful insurance services, Waqaya directly contributes to enhancing financial stability within the framework of Saudi Vision 2030, which aims to diversify the Saudi economy and reduce its reliance on the oil sector. Waqaya is committed to transparency and financial disclosure standards, operating under the supervision of the Saudi Capital Market Authority, ensuring accurate data for investors and analysts. In this comprehensive article, we will detail Waqaya's performance, sector developments, financial indicators, challenges, and future opportunities, providing readers with educational and unbiased information to help them understand the dynamics of the insurance sector in the Saudi market. If you are interested in learning more about "Saudi Arabia" in the context of the financial market, you will find all the necessary analysis, data, and answers to common questions here.
Definition of Waqaya Insurance Company and Its Role in the Saudi Market
Waqaya Insurance Company is considered a leading firm in the reinsurance field in the Kingdom of Saudi Arabia, established under the Saudi Companies Law and has evolved to become a key player in the Takaful insurance sector. Waqaya offers a wide range of reinsurance products, covering risks such as fire, vehicles, life, health, and civil liability. The company follows a cooperative insurance model compliant with Sharia, enhancing its appeal in the local market and meeting the needs of institutional and individual clients.
Waqaya aims to distribute financial risks broadly among insurance companies, mitigating the impact of significant losses that could threaten the stability of primary insurance firms. Thanks to the oversight of the Saudi Capital Market Authority, Waqaya adheres to the highest standards of transparency, issuing periodic financial reports that enable investors to monitor financial performance impartially. This commitment to governance enhances the company's credibility in the Saudi financial market, making it a reference point for stability in a rapidly evolving insurance sector.
Overview of the Insurance and Reinsurance Sector in Saudi Arabia
The insurance sector in the Kingdom is witnessing steady growth, driven by increased insurance awareness and government initiatives mandating insurance in various sectors (health, automobiles, major projects). Reinsurance companies like Waqaya play a pivotal role in supporting primary insurance firms by transferring part of their risks, allowing coverage of large projects without exposing companies to devastating losses.
The Saudi insurance market is characterized by the application of strict accounting standards such as IFRS 17, and is under continuous supervision from the Capital Market Authority and the Saudi Central Bank. This evolving regulatory environment enhances sector stability and supports innovation, including the introduction of InsurTech solutions that contribute to improved risk assessment and streamlined claims processes. Under Vision 2030, the sector's growth accelerates with the expansion of infrastructure, energy, and manufacturing projects, creating additional opportunities for local reinsurance companies.
Recent Financial Indicators for Waqaya Insurance Company
The financial indicators for Waqaya Insurance Company reflect strong performance during 2024 and 2025, with the stock price reaching approximately 93 Saudi Riyals in February 2025, up from a low of 48.90 Riyals in August 2024. The company's market capitalization is estimated between 3.5 and 4 billion Saudi Riyals, with a price-to-earnings (P/E) ratio of about 10 to 12, which is considered attractive compared to the sector average.
The company announced a cash dividend distribution of 0.60 Riyals per share for the fiscal year ending 2024, yielding between 3% and 4%. In terms of revenues and profits, Waqaya achieved a 17% growth in operating revenues, and net profit increased by 25% compared to the previous year. These results reflect the company's ability to convert rising revenues into net profits, supported by cost control and improved risk management.
Waqaya's Stock Performance on Tadawul and Volatility Analysis
Waqaya's stock has experienced notable volatility during 2024 and 2025, with prices ranging between 48.90 Riyals and 96.00 Riyals. This volatility reflects the dynamics of the insurance sector and the impact of economic and sector developments on investor confidence. Trading volumes in the stock increased following the announcement of strong financial results and positive sector developments, contributing to the company's market valuation.
The relatively low P/E ratio indicates that the stock may be priced below its intrinsic value, given the growth in profits and stable dividends. However, it should be noted that stock prices are influenced by several external factors such as changes in interest rates, macroeconomic conditions, and regulatory changes, necessitating continuous monitoring of news and official financial data.
Analysis of Dividend Yield and Its Importance for Investors
Dividend yield is one of the most important indicators that investors look at in the insurance sector. Waqaya announced a dividend of 0.60 Riyals per share, achieving an annual yield of around 3-4% at the current price. The company follows a balanced dividend distribution policy that considers sustainable financial growth and shareholders' needs for periodic income.
The distribution policy is based on annual profit results and the approval of the Board of Directors and the General Assembly. Stability in distributions contributes to increasing investor confidence, especially for those seeking periodic returns. As profits continue to grow, distributions may increase in the future, provided that financial stability and sufficient liquidity are maintained to address any emergencies in the sector.
Waqaya's Financial Results in Q3 and Q4 2024
Waqaya Insurance Company recorded significant growth in its profits during the third and fourth quarters of 2024, with revenues rising by 20% and net profits increasing by 25% compared to the same period in 2023. This improvement is attributed to an increase in written premiums, improved recovery rates from reinsurance operations, and control over operating expenses.
The company also benefited from launching new insurance products aimed at the oil, gas, and industrial sectors, which stimulated demand for reinsurance services. These indicators reflect the management's ability to balance growth with operational efficiency, positively impacting quarterly results and enhancing the company's financial position.
Waqaya's Role in Supporting Saudi Vision 2030 and Economic Diversification
Waqaya Insurance Company plays an important role in achieving the objectives of Saudi Vision 2030, particularly in diversifying the economy and reducing dependence on oil. By providing advanced reinsurance solutions, Waqaya supports major projects in infrastructure, energy, and industry, contributing to the protection of investments from sudden risks.
The company's strategy aligns with national transformation programs that encourage the development of the insurance sector and increase the insurance coverage ratio for individuals and institutions. The expansion of specialized insurance products, such as cyber insurance and giga project insurance, also enhances the company's role as a key driver of sustainable economic growth in the Kingdom.
Competition in the Saudi Insurance Sector and Key Competitors
The insurance sector in Saudi Arabia faces strong competition from several major companies such as Tawuniya Insurance, Bupa Arabia, Al Mashreq Insurance, and Saudi French Insurance. These companies compete to provide the best insurance services and products, in addition to developing new solutions that meet the evolving market needs.
Waqaya benefits from its focus on reinsurance, giving it a relative advantage in covering major risks that other insurance companies cannot bear alone. The company also relies on strategic partnerships with international and local financial institutions to enhance its risk distribution capacity and achieve financial stability. Meanwhile, competition remains a fundamental driver for continuous improvement in service quality and product development.
Recent Technological and Regulatory Developments in the Saudi Insurance Sector
The Saudi insurance sector has witnessed significant technological and regulatory developments in 2024-2025. Waqaya launched an electronic platform for managing insurance contracts in collaboration with fintech companies, which contributed to improving operational efficiency and reducing costs. The company also introduced artificial intelligence and data analytics solutions in risk assessment and claims settlement processes.
On the regulatory front, the Capital Market Authority imposed new requirements to enhance capital adequacy and regulate risk calculation, which bolstered the credit rating of companies and increased investor confidence. These updates support insurance companies' ability to face future challenges and enhance their competitiveness in both local and global markets.
Risk Management at Waqaya and Hedging Strategies
Waqaya Insurance Company relies on a comprehensive risk management system, including strict underwriting policies, redistributing risks to global reinsurance companies, and diversifying its investment portfolio. The company carefully assesses risks before accepting any insurance contracts and maintains high financial reserves to address potential losses.
The company also employs modern technologies for data analysis and forecasting future risks, enabling it to make quick and effective strategic decisions. Hedging strategies also include diversifying income sources and investing in safe financial instruments such as treasury bills and bank deposits, enhancing the company's ability to withstand economic fluctuations.
Ownership Structure and Governance at Waqaya
Waqaya features a balanced ownership structure, with local investors (individuals and companies) owning over 50% of its shares, while the remaining percentage is distributed among individual and institutional local and international investors. Saudi laws allow foreigners to own up to 49% of the shares under certain regulations, opening the door for attracting foreign capital and supporting liquidity.
The company adheres to the highest governance standards, with its Board of Directors comprising a select group of financial and insurance experts, and it issues periodic reports on performance and financial transparency. Established in 1986, the company became a public joint-stock company in 2012, and since then, it has witnessed significant growth in its products and services, supported by effective management and a clear strategic vision.
Future Growth Opportunities and Challenges for Waqaya and the Saudi Insurance Sector
The Saudi insurance sector boasts significant growth potential driven by the expansion of national projects and increased mandatory insurance in several sectors. This environment provides Waqaya with opportunities to enhance its market share, especially with the shift towards specialized reinsurance products and the expansion of international partnerships.
However, the sector faces challenges related to macroeconomic fluctuations, fierce competition, and the sector's sensitivity to global interest rates. This requires companies to develop innovative products, enhance risk management, and invest in modern technologies to ensure long-term sustainability. Estimates indicate that the Saudi insurance market will grow by about 7% annually in the coming years, making the insurance sector an attractive environment for long-term investments.
How to Follow Waqaya News and Purchase Its Shares in the Saudi Market
Investors can follow the latest news about Waqaya Insurance through the company's official website and the official website of the Saudi financial market (Tadawul), where updates regarding financial results, dividend announcements, and sector developments are published. Financial analysis platforms such as Argaam and Al-Numu provide periodic analytical reports on stock and sector performance.
To purchase Waqaya shares, investors need to open a trading account with a licensed financial broker in Saudi Arabia, then use the stock symbol (8310) to issue buy and sell orders. It is essential to review the latest financial reports and performance indicators before making any investment decision, while also consulting a licensed financial advisor to ensure decisions are based on comprehensive and objective analysis.
Conclusion
In conclusion, Waqaya Insurance Company stands out as one of the key players in the Saudi insurance and reinsurance sector, supported by strong financial performance, stable dividend policies, and a strict commitment to transparency and governance standards. As developments in the Saudi insurance sector continue and the volume of major projects rises, the importance of Waqaya's role in supporting financial stability and diversifying the economy in line with Saudi Vision 2030 increases. Amidst growing competition and technological and regulatory developments, growth opportunities remain promising, provided the company continues to develop its products and improve risk management. If you are interested in understanding the dynamics of the Saudi insurance sector and Waqaya's performance, we recommend continuing to follow analyses through the SIGMIX platform and consulting a licensed financial advisor before making any investment decisions to ensure your financial goals are achieved safely and knowledgeably.
Frequently Asked Questions
Waqaya operates in the fields of reinsurance and Takaful insurance, providing coverage for various risks such as fire, vehicles, life, and health. Its primary role is to broadly distribute risks and support primary insurance companies in managing significant financial risks, contributing to the stability of the Saudi insurance sector.
The current price of Waqaya's stock is approximately 93 Saudi Riyals as of the latest update in February 2025. The company's market capitalization is estimated between 3.5 and 4 billion Riyals, based on the number of issued shares and the current stock price. This data is continuously updated on the official Tadawul website.
The price-to-earnings ratio is the ratio of the stock price to the annual earnings per share. Waqaya's P/E ratio is approximately 10 to 12, which is relatively low compared to the sector average, indicating the stock's attractiveness in terms of its current valuation relative to its earnings.
Waqaya distributes cash dividends annually or semi-annually based on the decision of the General Assembly and the Board of Directors. The yield on distributions was approximately 3-4% in the last fiscal year, attracting investors seeking periodic income while ensuring the company's financial growth sustainability.
Developments included the launch of electronic platforms for managing insurance contracts, the introduction of artificial intelligence and data analytics technologies, and adherence to new accounting and regulatory standards such as IFRS 17. These factors have improved the company's operational efficiency and increased investor confidence in the sector.
Waqaya relies on precise underwriting policies, redistributing risks through partnerships with global reinsurance companies, and diversifying its investment portfolio. The company also uses modern technologies to analyze risks and maintains high financial reserves to address any fluctuations or unexpected losses.
Key competitors include Tawuniya Insurance, Bupa Arabia Health Insurance, Al Mashreq Insurance, and Saudi French Insurance. Waqaya focuses on reinsurance, giving it a relative advantage in covering major risks compared to these companies.
News about Waqaya can be followed through its official website and the Saudi Tadawul website. To purchase shares, investors need to open a trading account with a licensed broker and use the stock symbol 8310. It is always advisable to consult a licensed financial advisor before making any investment decision.
The sector faces challenges such as intense competition, macroeconomic fluctuations, regulatory changes, and profitability sensitivity to interest rates. This requires companies to develop innovative products, enhance risk management, and invest in technologies to ensure sustainable growth.
Waqaya supports Vision 2030 by providing advanced reinsurance solutions for infrastructure and energy projects, contributing to protecting investments and diversifying the economy. The company also aligns with national transformation programs and expands its products to meet evolving market needs.