Brog Insurance Cooperative is a prominent player in the Saudi insurance sector, leading the market with its diverse portfolio that includes auto insurance, health insurance, property and casualty insurance, as well as specialized products like Hajj and Umrah insurance. The company is supervised by the Saudi Capital Market Authority and the Insurance Supervision Authority and is listed on the Saudi financial market (Tadawul) under the stock symbol 8270. Amid the changes occurring in the Saudi insurance market, monitoring the performance of Brog Insurance Cooperative becomes crucial, especially in light of challenges related to declining profits, increasing competition, and modern trends towards mergers among major entities, such as the recent merger deal with Medgulf. In this article, we explore all details related to Brog Insurance Cooperative, from its financial results and performance indicators to structural transformations and their impact on the market, highlighting key competitors and the opportunities and challenges facing the sector. This material does not aim to provide investment advice but offers neutral and reliable information to help understand the current landscape of Brog and the Saudi insurance market.
Overview of Brog Insurance Cooperative
Brog Insurance Cooperative was established in the Kingdom of Saudi Arabia with the aim of providing diverse cooperative insurance services and operates under the supervision of the Saudi Capital Market Authority and the Insurance Supervision Authority. The company offers a wide range of products, including vehicle insurance, health insurance, property insurance, accident insurance, and marine and aviation insurance, in addition to specialized coverages such as Hajj and Umrah insurance and travel insurance for pilgrims. Brog has adopted a geographical spread approach through a network of agents and local and international reinsurance companies, enabling it to reach a broad customer base of both individuals and institutions.
The company is characterized by its focus on meeting the needs of the Saudi market and representing the cooperative or Takaful insurance model, which is based on the principle of cooperation among the insured. Brog's participation in the Saudi Tadawul reflects its position as one of the leading companies in the local insurance sector, where competition is fierce with major companies and it is subject to increasing regulatory oversight to ensure quality and financial sustainability.
Company Product Portfolio and Services
Brog Insurance Cooperative's activities cover most of the required insurance lines in the Saudi market. The company offers:
1. Vehicle insurance: Includes mandatory insurance and comprehensive coverage against accidents, fire, theft, and liability to third parties.
2. Health insurance: Targets individuals and companies and provides various medical coverages in line with cooperative health insurance regulations.
3. Property and accident insurance: Covers risks associated with buildings, factories, warehouses, and hotels against fire, natural disasters, and accidental damage.
4. Marine and aviation insurance: Includes insurance for ships, transported goods, and commercial aviation.
5. Specialized insurance such as Hajj and Umrah and travel: Focuses on protecting pilgrims from health risks or accidents during their trips.
Brog aims to provide competitive products that meet the changing market needs, developing innovative programs to keep pace with the requirements of individuals and companies in the Kingdom.
Financial Performance of Brog Insurance Cooperative (2024-2025)
Brog Insurance Cooperative experienced fluctuations in its financial performance during 2024 and 2025. The last closing price of Brog's stock at the end of 2025 was approximately 16.01 SAR, giving the company a market value of 480.3 million SAR, based on the number of outstanding shares of 30 million shares.
In terms of annual results, the company's net profit for 2024 decreased to 9.39 million SAR, down from approximately 20.08 million SAR in 2023, representing a decline of 53.3%. The net profit before tax and surplus also fell from 25.58 million SAR in 2023 to 19.19 million SAR in 2024. Meanwhile, earned insurance income amounted to 372.73 million SAR in 2024 compared to 373.44 million SAR in 2023, showing a slight decline. Regarding total written premiums, it reached 373.74 million SAR in 2024, down 11.6% from the previous year.
On the profitability front, earnings per share dropped from 0.67 SAR in 2023 to 0.31 SAR in 2024, resulting in an approximate price-to-earnings (P/E) ratio of 52, which is relatively high and reflects the sharp decline in profits. The cash distribution yield was very low or nonexistent due to the absence of announced distributions during 2024 and 2025.
Analysis of Q4 Results and H1 2025
The quarterly results of Brog Insurance Cooperative showed a continued decline in financial performance during 2024 and the first half of 2025. In Q4 2024, the company recorded a net profit of 1.6 million SAR, down 73% compared to Q4 2023. In the first nine months of 2024, profits amounted to approximately 7.8 million SAR, a 45% decline from the same period in 2023.
In the first half of 2025, weak performance continued with a net profit for the period of 2.8 million SAR, down 60% compared to H1 2024. Q2 profits reached 1.5 million SAR (down 54% from the corresponding period), compared to 1.3 million SAR in Q1 2025.
These figures reflect significant challenges facing the company, such as declining insurance premiums, reduced revenues from auto and health insurance, alongside increased zakat and reserve expenses, which negatively impacted net profit.
Growth Indicators and Revenues at Brog Insurance
Brog Insurance Cooperative's financial data indicate that the company faced revenue growth pressures during 2024. Total written premiums decreased by 11.6%, primarily due to a slowdown in the growth of auto and health insurance.
Despite this decline, some sectors experienced relative improvement, such as property and casualty insurance, which recorded a notable revenue increase of 16.823 million SAR compared to 2023. However, this improvement was not sufficient to offset the revenue decline from auto insurance (down by 15.398 million SAR) and health insurance (down by approximately 2.139 million SAR). Revenues from Hajj and Umrah programs also decreased by 10.248 million SAR, affecting the company's income stability.
Additionally, zakat and reserve expenses rose by approximately 4.3 million SAR, further increasing pressure on the company's net profits. Nevertheless, net profits from insurance and investment activities showed an increase of 5.262 million SAR (+16.45%) in 2024, reflecting some balance in performance.
Market Indicators: Price-to-Earnings Ratio and Dividend Yield
The price-to-earnings (P/E) ratio is an important indicator for assessing the status of listed companies in the financial market. For Brog, the P/E ratio at the end of 2024 was approximately 52, based on a stock price of 16.01 SAR and earnings per share for the year of 0.31 SAR. This figure reflects a decline in profits and indicates that the stock is trading at a high valuation relative to its earnings, often reflecting market expectations for further improvement in performance or restructuring of the company.
As for the dividend yield, Brog did not announce any cash dividends during 2024 or 2025 due to declining profits. Consequently, the dividend yield during this period is considered close to zero. This situation may be temporary until the company, or the upcoming merged entity, achieves an improvement in its financial results.
Analysis of the Saudi Insurance Sector and Market Conditions
The Saudi insurance sector operates in a highly competitive environment and experiences cyclical fluctuations linked to the economy and claims rates. The sector includes more than 30 insurance companies, including cooperative and commercial firms, and is regulated by the Saudi Insurance Authority and the Capital Market Authority. In the first half of 2025, the sector recorded a decline in aggregate profits of 38%, with net profits amounting to 1,373.8 million SAR, compared to the same period of the previous year.
This decline is associated with rising costs of health and auto insurance, increased administrative burdens, alongside intense competition that pressures prices and profit margins. However, the Saudi market remains promising due to population growth, increased insurance awareness, and expansion in infrastructure projects, which boosts demand for insurance products. From a regulatory perspective, the sector has witnessed significant changes such as the separation between cooperative and commercial insurance, enhancement of mandatory health insurance, and development of Islamic insurance.
Comparing Brog with Key Competitors in the Market
Brog Insurance Cooperative faces competition from major companies in the Saudi market, including:
1. The Cooperative Insurance Company: The largest and oldest cooperative insurance company in the Kingdom, enjoying a strong market share.
2. Malath Insurance: A leader in health insurance and marine insurance.
3. Medgulf Insurance: A direct competitor to Brog, active in most lines of insurance and currently working on merging with Brog.
4. United Insurance Company: Provides comprehensive insurance services across several sectors.
5. Aseg: Specializes in cooperative insurance for vehicles and health.
Competition influences pricing policies and product diversity, driving companies to enhance their services and improve operational efficiency. Monitoring competitors' performance is an important indicator for understanding sector trends and assessing Brog's relative position in the market.
Developments of Brog's Merger with Medgulf and Its Impact on the Market
2025 witnessed a pivotal event in Brog's journey, represented by the announcement of its merger with Medgulf Insurance. In September and October 2025, merger documents were published, and the general assemblies of both companies approved the deal. On October 28, 2025, Brog's stock was delisted from the Saudi financial market, and Medgulf raised its capital to complete the merger. Subsequently, Medgulf announced the official enforcement of the merger decision on October 30, 2025.
This merger is part of a general trend in the Saudi insurance sector towards forming larger entities to enhance capital and competitive capacity. It is expected to reflect positively on Brog's shareholders, who will receive shares in the merged entity at a specified rate or financial compensation, according to the decisions of the assemblies and capital plans. The merger of Brog with Medgulf represents a radical transformation in the company's structure and the future of its brand, and it is expected to impact the competitive landscape of the sector as a whole.
Impact of Financial and Regulatory Changes on Shareholders
The rights of Brog Insurance Cooperative shareholders were affected by the decision to merge with Medgulf. Under the agreement, Brog's shares will be exchanged for shares in Medgulf at an announced exchange ratio after approval from the relevant authorities. This process aims to strengthen the financial position of the new entity, improve operational efficiency, and expand the customer base.
Practically, the delisting of Brog's stock will halt its independent trading, and shareholders will transition to a share entitlement system or financial compensation in Medgulf. The final value of the shares will depend on the exchange ratio and market conditions at execution. In light of these changes, it is always advisable to monitor official announcements from the Capital Market Authority and the companies involved for accurate details regarding the implementation mechanism and shareholders' rights.
Impact of Changes on the Future of the Company and the Sector
The merger of Brog with Medgulf is expected to lead to the creation of a larger and more competitive entity in the Saudi insurance market. This will contribute to strengthening capital, improving risk management, and expanding the range of products and services offered to customers. It may also achieve economic savings through the integration of operations and the unification of technical and administrative infrastructure.
At the sector level, these changes reflect a trend towards restructuring the market through the merger of medium and small companies to form strong entities capable of facing economic and regulatory challenges. However, the success of these steps depends on the management's ability to achieve actual integration and capitalize on future market opportunities.
Future Outlook for the Insurance Sector in Saudi Arabia
Despite current challenges, the Saudi insurance sector remains one of the promising sectors, supported by population growth, a large market size, and increasing insurance awareness. Government initiatives to stimulate mandatory health insurance, expansion in property insurance, and massive projects like Vision 2030 enhance demand for insurance services.
Mergers and acquisitions among companies are expected to continue, aiming to improve operational efficiency, reduce costs, and enhance companies' ability to face risks. The importance of digital technologies in developing insurance products, improving customer experience, and enhancing transparency and regulatory oversight is also expected to increase.
Factors such as price competition, regulatory changes, and rising claims costs continue to affect companies' profit margins, necessitating flexible strategies and effective risk management.
How to Follow Company News and Obtain Accurate Data
To obtain the latest information about Brog Insurance Cooperative and its developments, it is advisable to follow official sources such as the Saudi financial market (Tadawul) website, the Capital Market Authority website, as well as specialized news reports like Argaam. These sources provide reliable data on financial results, general assembly news, and important regulatory announcements.
It is also recommended to follow the company's official website (if available) for direct disclosures and financial data. Always ensure the accuracy of information through reliable sources and avoid relying on unverified news or rumors in assessing company performance or making investment decisions.
Conclusion
Brog Insurance Cooperative presents an important model in the transformations occurring in the Saudi insurance sector, through its diverse portfolio, its contribution to the development of insurance products, and its experience in merging with one of the largest companies in the sector. The company's recent results reflect market challenges in terms of declining profits, high price-to-earnings ratio, and weak dividend yield, yet entering into a strategic merger deal with Medgulf represents a significant step towards restructuring and enhancing competitiveness. In light of market changes and new regulations, closely monitoring official information and analyzing financial data remains vital for understanding the landscape objectively. For more analyses and comprehensive reports on the Saudi stock market and the insurance sector, you can follow the SIGMIX platform, while always remembering the importance of consulting a licensed financial advisor before making any investment decisions, as this article does not represent direct investment advice.
Frequently Asked Questions
Brog Insurance Cooperative provides diverse cooperative insurance services in the Kingdom of Saudi Arabia. Its activities include vehicle insurance, health insurance, property and casualty insurance, as well as specialized insurances such as Hajj and Umrah and marine and aviation insurance. The company targets individuals and businesses and operates under the cooperative insurance system based on the principle of mutual assistance among the insured, and is subject to the oversight of the Capital Market Authority and the Insurance Supervision Authority.
Brog experienced a significant decline in its profits during 2024 and 2025, with net annual profit dropping from 20.08 million SAR in 2023 to 9.39 million SAR in 2024. The profits for Q4 2024 also declined by 73% compared to the same period in 2023. This is attributed to decreased revenues in certain insurance sectors, particularly auto and health, alongside increased zakat and administrative expenses.
As of the end of 2025, the last closing price of Brog Insurance Cooperative's stock was approximately 16.01 SAR. With 30 million outstanding shares, the company's market value is about 480.3 million SAR. It is worth noting that the stock will cease trading after the completion of the merger with Medgulf.
Brog did not announce any cash dividends during 2024 or 2025 due to declining profits and not achieving strong financial results. Consequently, the dividend yield for the stock during this period is considered close to zero. It is advisable to check the general assembly disclosures for any future updates regarding dividends.
Brog's profits declined in 2024 primarily due to decreased revenues from auto and health insurance, as the company recorded a drop in premiums in these sectors. Additionally, increased zakat and reserve expenses, along with reduced revenues from Hajj and Umrah programs, negatively impacted net profit. Despite improvements in property insurance revenues, this was not sufficient to offset declines in other sectors.
In late 2025, the general assemblies of both Brog and Medgulf approved the merger between the two companies. This led to the delisting of Brog's stock from the market in October 2025, and Medgulf raised its capital to merge the assets and rights of Brog's shareholders. Brog shareholders will receive shares in Medgulf or financial compensation according to an announced exchange ratio later, with regulatory procedures completed under the supervision of regulatory authorities.
Brog competes in the Saudi market with major companies such as the Cooperative Insurance Company, Malath Insurance, Medgulf (which it merged with), United Insurance Company, and Aseg. These companies compete in various insurance sectors such as auto, health, and property insurance, and are characterized by strong market shares and diverse pricing policies.
To follow news and results of Brog, it is advisable to refer to the Saudi financial market (Tadawul) website, the Capital Market Authority website, and Argaam, which publishes financial reports and important developments for listed companies. You can also follow the company's official website or its social media accounts for the latest data and official disclosures.
Brog's price-to-earnings (P/E) ratio at the end of 2024 was approximately 52, based on a stock price of 16.01 SAR and annual earnings per share of 0.31 SAR. This figure is relatively high and reflects the decline in profits recently, and is an important indicator to consider when evaluating the company's performance.
After the merger of Brog with Medgulf, Brog's portfolio and assets will be integrated into the larger Medgulf entity. This is expected to enhance the financial and operational position of the new company, expanding its customer base and product offerings. Brog shareholders will receive shares in Medgulf or financial compensation, and Brog will cease to exist as an independent entity in the market after the completion of regulatory procedures.