walaa cooperative insurance company: Everything You Need to Know

Walaa Cooperative Insurance Company was established to meet the growing need for Sharia-compliant insurance solutions in the Kingdom of Saudi Arabia, particularly in light of rapid economic reforms and the need to protect individuals and businesses from increasing risks. The company started with substantial capital exceeding hundreds of millions of riyals, enabling it to build a solid base of assets and qualified human resources.

From the outset, Walaa committed to the cooperative insurance model (Takaful), where all policyholders contribute to bearing risks and benefit from the surpluses achieved in a fair and transparent manner. This model provided it with a strong competitive advantage, especially in a Saudi market that places great importance on adherence to Sharia provisions and equitable distribution of benefits among participants.

The company has gradually expanded its products and services, starting with general and health insurance, and later expanding to include engineering insurance, liability insurance, and cooperative reinsurance. As the market evolved, Walaa entered the Saudi stock market by listing on the main Tadawul platform under the symbol 8060, which enhanced its transparency and allowed it to attract new capital.

In recent years, Walaa has pursued strategic plans to merge with other companies or enter into partnerships with regional and international reinsurance institutions. This strategy has helped enhance its capabilities to cover major risks and meet contemporary market demands. Thanks to its ongoing commitment to product development and innovation, Walaa Cooperative Insurance Company has become one of the leading companies contributing to the development of the Saudi insurance sector and raising its global standards.

Walaa Cooperative Insurance Company has an ownership structure characterized by institutional distribution and transparency, with investment entities and individuals holding diverse stakes in the company's capital. The company's listing on the Saudi Stock Exchange (Tadawul) under the symbol 8060 has allowed for an increase in the shareholder base, opening the door for local and foreign investors to participate in its growth. The ownership structure is subject to periodic updates announced by the company in compliance with the Capital Market Authority's disclosure requirements.

Regarding management, the company is led by a team of national and international talents with deep expertise in insurance, financial management, and business development. The board of directors consists of members representing various stakeholders and works on setting long-term strategies and monitoring executive performance. The company also manages specialized subcommittees, such as the Audit and Risk Committee, Internal Audit Committee, and Nomination and Remuneration Committee, to ensure compliance with best practices in governance and internal control.

Walaa Cooperative Insurance Company places great importance on developing its human resources, investing in training and development programs, and implementing incentive systems to attract highly qualified employees. The company adopts a transparency and accountability approach at all stages of decision-making, achieving a balance between the interests of shareholders, clients, and all stakeholders. This approach has contributed to enhancing market and investor confidence in the company's ability to achieve its strategic goals and maintain the sustainability of its operations, enabling it to respond flexibly to regulatory and economic changes in the Saudi insurance sector.

Walaa Cooperative Insurance Company meets the diverse needs of the Saudi market by offering a comprehensive range of insurance products and services designed for individuals and businesses. The company's portfolio begins with health insurance products, which are among the fastest-growing sectors in the Kingdom, providing multi-level medical coverage that complies with the Health Insurance Council's requirements and suits various segments of employees and individuals. The company also offers vehicle insurance, both comprehensive and third-party, along with additional services such as roadside assistance and expedited claims processing.

In the general insurance sector, Walaa provides extensive solutions including property insurance, engineering insurance, fire insurance, marine and aviation insurance, and insurance against natural disasters and infrastructure risks. The company is committed to continuously developing its products to meet market needs, such as professional and civil liability insurance, and insurance for major project risks.

For large companies and institutions, Walaa Cooperative Insurance Company offers group insurance services, group life insurance, and cooperative reinsurance solutions in collaboration with international reinsurance companies. The company has also launched digital platforms that allow policyholders to manage their documents and claims online easily and securely.

In support of the Kingdom's Vision 2030, the company focuses on developing new insurance products that meet the needs of small and medium-sized enterprises and keep pace with digital transformations in the financial sector. All these products and services are offered within a cooperative framework that ensures the distribution of profits and surpluses according to Sharia regulations, enhancing the company's attractiveness to a wide range of clients seeking solutions aligned with Islamic values.

Walaa Cooperative Insurance Company has demonstrated strong financial performance in recent years, achieving notable growth in total written premiums, driven by rising demand for health and vehicle insurance, alongside improvements in economic activities within the Kingdom. Financial data for the first half of 2024 showed an increase in written premiums of nearly 12% compared to the same period last year, positively reflecting on operational revenues and profit margins.

Net profit before Zakat in 2024 is estimated to be significant (according to preliminary reports), with the claims cost ratio stabilizing at 60–65% of total premiums, which is considered a good rate within the insurance sector standards. The company also maintained efficiency in managing operational expenses, contributing to the enhancement of net profit.

On the other hand, total assets of Walaa Insurance at the end of 2024 reached approximately one billion Saudi riyals (approximate figure), with its investments distributed among government bonds, stakes in subsidiary companies, and a high liquidity ratio to cover claims. Equity continued to grow thanks to increased retained earnings. The results were also affected by the implementation of IFRS 17, which led to the restructuring of some financial items to reflect the fair value of assets and liabilities.

Forecasts indicate that Walaa Cooperative Insurance Company will continue to achieve an annual growth rate in premiums ranging between 10-15% during 2025, supported by the expansion of its customer base and the signing of new major contracts. This directly reflects on the stability of profitability and solvency indicators, qualifying the company to continue its strategy of distributing profits and achieving sustainable returns for shareholders.

It is worth noting that the company's reports are subject to external supervision and periodic auditing by certified auditors and regulatory bodies to ensure the transparency and accuracy of the published financial data.

Walaa Cooperative Insurance Company stock is listed on the Saudi Stock Exchange (Tadawul) under the symbol 8060, and is considered one of the stocks that have attracted investor interest in the insurance sector due to its stable performance and continuous growth in profits and assets. In 2024, the stock price ranged between 25 and 30 Saudi riyals, with this range fluctuating according to market movements and the company's quarterly results.

Based on the estimated number of issued shares in several millions, the company's market value ranged between 3.0 and 3.5 billion Saudi riyals during 2024. This classification places Walaa among the medium-sized companies in the Saudi insurance sector, reflecting its growing size and competitive ability. The price-to-earnings (P/E) ratio for the stock was around 12–15 times in 2024, a figure consistent with the sector's average and indicating investor confidence in the sustainability of profit growth.

The stock's movement depends on several factors, including the company's quarterly financial results, regulatory changes in the sector, and the growth of demand for insurance products. The stock has shown relative stability in recent months, reflecting market satisfaction with the company's performance and its ability to manage risks.

Regarding cash distributions, the company has followed a balanced policy of distributing dividends to shareholders, typically ranging between 20% and 30% of capital annually, depending on the profits achieved and the general assembly's approval. This approach allows investors to benefit from cash returns in addition to the potential for long-term capital growth.

It is important to note that the stock price is subject to market fluctuations and economic factors, and future trends cannot be accurately predicted without referring to independent analyses and direct trading reports, with the necessity of consulting a licensed financial advisor before making any investment decisions.

Walaa Cooperative Insurance Company adopts a flexible and balanced cash dividend distribution policy, aiming to achieve shareholder satisfaction while maintaining the strength of its financial position. In recent years, the company has announced relatively generous cash distributions, sometimes reaching 25% of capital, a rate considered high compared to some companies in the sector. The distribution policy relies on annual performance results, the company's liquidity, and future growth requirements, with the necessity of obtaining the general assembly's approval.

In 2024, considering the positive financial results, it is expected that Walaa will continue its approach of distributing between 20% and 30% of capital as cash dividends, if financial conditions permit. This approach provides shareholders with stable cash flows and reflects the company's commitment to adding value for investors without compromising its ability to expand and meet insurance obligations.

The company places great importance on maintaining a fair proportion of retained earnings for business development, enhancing capital, and investing in digital infrastructure, ensuring the sustainability of returns in the long term. Its commitment to international accounting standards (IFRS 17) increases transparency in profit reporting and enhances investor confidence in future distributions.

On the other hand, the distribution policy is affected by market factors such as regulatory changes, reserve requirements, and fluctuations in claims levels. Therefore, Walaa Cooperative Insurance Company's management is keen to review this policy annually, achieving a balance between cash returns and sustainable growth, and aligning with shareholders' aspirations in a changing competitive environment.

Walaa Cooperative Insurance Company received a credit rating from Fitch Ratings with a stable outlook during 2023, which is a strong indicator of the company's financial strength and ability to meet its obligations. Credit ratings from international agencies like Fitch are a key reference for investors and decision-makers in assessing the creditworthiness of companies, especially in the insurance sector that requires high levels of financial solvency and liquidity.

Fitch's assessment was based on several factors, including profit stability, risk management efficiency, reserve size, and asset quality. The agency noted that Walaa Cooperative Insurance Company has effective management of insurance risks, sufficient reserves to cover major claims, and a strong track record of achieving stable operating profits over the years.

A high credit rating helps the company obtain better terms when contracting with international reinsurance companies and supports its ability to expand in offering new products. The rating also enhances customer and investor confidence and contributes to the stability of the stock price in the market.

The company places utmost importance on maintaining a good credit rating through conservative financial policies, enhancing risk management, and continuously developing its capital base. The company is subject to periodic reviews by rating agencies that closely monitor sector performance and regulatory developments, encouraging the adoption of best global practices in financial management and governance.

Walaa Cooperative Insurance Company began implementing the International Financial Reporting Standard for Insurance (IFRS 17) starting in 2024, a significant accounting shift that directly affects the preparation of the company's financial reports. This standard aims to achieve greater transparency in presenting business results by recognizing insurance revenues and liabilities based on the expected fair value of future cash flows, rather than traditional methods that relied on less accurate estimates.

The implementation of IFRS 17 led to the restructuring of balance sheet items and profit and loss calculations, where insurance contracts and claims provisions were accounted for more realistically, reflecting a more accurate picture of the company's true financial situation. It has also become necessary to disclose larger details regarding how revenues, claims, and risk provisions are calculated, enhancing investor and regulatory confidence in fairness and transparency.

Walaa Cooperative Insurance Company has developed a comprehensive plan for implementing the new standard, which included training employees, updating accounting systems, and collaborating with external consultants to ensure full compliance with the new regulatory framework.

Although the implementation of IFRS 17 may lead to some temporary fluctuations in transitional period results, in the long run, it provides a stronger financial database that helps management make better strategic decisions. The new standard also facilitates the comparison of the company's results with its competitors locally and internationally, thanks to the standardization of measurement and accounting disclosure methods across the entire sector.

The insurance sector in the Kingdom of Saudi Arabia is experiencing rapid growth driven by the implementation of mandatory insurance policies, improved public awareness of the importance of insurance, and economic expansion associated with Vision 2030. The contribution of insurance to GDP is around 3-4%, a relatively low percentage compared to advanced markets, opening the door to tremendous growth opportunities in the future.

Saudi insurance companies face several challenges, the most prominent of which are intense competition among about 30 insurance companies, high capital and reserve requirements imposed by regulatory authorities, and the need to adapt to regulatory changes such as IFRS 17 and the use of modern technology in business management. Rising claims costs and pricing pressures also pose challenges to profitability.

In this context, Walaa Cooperative Insurance Company stands out for its ability to capitalize on available opportunities by offering Sharia-compliant products, developing digital services, and expanding its distribution network and agents. It is also proactive in entering partnerships with global reinsurance companies, which enhances its financial stability and ability to cover large risks.

The company seeks to benefit from the growing demand for health insurance, engineering insurance, and insurance for small and medium-sized enterprises, in addition to focusing on developing specialized products that keep pace with the economic and social transformations in the Kingdom. The company's ability to adapt to regulatory and competitive changes remains a key element in maintaining its position as one of the leading companies in the Saudi insurance sector.

Competition in the Saudi insurance market is fierce among major companies such as Tawuniya, Malath Insurance, Walaa Insurance, Bupa Arabia, and Al-Etihad Insurance, among others. Competition is based on product quality, pricing, digital services, and the ability to cover major risks and provide innovative solutions.

Walaa Cooperative Insurance Company occupies a distinguished position among key players, benefiting from its diverse product offerings, commitment to Islamic Takaful, and strong history in risk management. The company faces strong competition from Tawuniya, which dominates a large portion of the market, and Bupa Arabia, which excels in health insurance, in addition to Walaa and Malath, which focus on digital solutions and innovation.

To excel in this changing market, Walaa relies on multiple strategies such as improving the digital customer experience, enhancing reinsurance partnerships, and developing new products targeting segments not addressed by other companies. It also invests in employee training and developing distribution channels, along with community awareness campaigns to enhance awareness of the importance of cooperative insurance.

The intense competition in the sector reflects the necessity for Walaa Cooperative Insurance Company to continue innovating and developing services in line with customer aspirations and regulatory changes. Its ability to maintain a good credit rating and reputation in the market gives it a competitive edge in attracting both customers and investors.

Walaa Cooperative Insurance Company has witnessed several significant developments during 2024 and 2025 that reflect its dynamism and focus on innovation and digital transformation. Among these developments is the company's receipt of a stable credit rating from Fitch, which has solidified investor and customer confidence in its financial stability and operational strength.

Financially, the results for the second quarter of 2024 showed a 15% improvement in net profits compared to the previous year, supported by rising insurance sales and reduced operating expenses. The company also announced strategic plans extending until 2026, focusing on investing in digital infrastructure and expanding its distributor network, with the introduction of artificial intelligence technologies to analyze risks and expedite claims processing.

In the reinsurance field, Walaa has entered into new partnerships with global reinsurance companies, enhancing its ability to cover risks of major projects and expand into engineering and real estate insurance. The company has also committed to applying IFRS 17 in its financial reports, adding more transparency and accuracy to its data.

On the corporate social responsibility front, Walaa has participated in several national campaigns to raise awareness of the importance of insurance and has supported initiatives aimed at enhancing financial literacy in Saudi society. These movements reflect the company's commitment to aligning with the goals of Vision 2030 and enhancing its position among the most innovative and interactive companies in the local insurance sector.

Risk management plays a central role in Walaa Cooperative Insurance Company's strategy, as the company relies on advanced systems to monitor and assess risks and determine the necessary reserve levels to ensure the fulfillment of all claims. Through specialized internal committees and actuarial experts, the company analyzes market trends, accident rates, and claims patterns to predict future risks and take preventive measures.

Walaa uses advanced technological systems for claims management, including electronic platforms for submitting and tracking requests, and artificial intelligence technologies to analyze data and detect unusual or fraudulent patterns. These tools have helped the company reduce claims processing time and increase customer satisfaction.

The company is also committed to applying the highest standards of internal control and conducts periodic reviews of underwriting policies and risk assessments, taking into account regulatory and market changes. It benefits from its partnerships with reinsurance companies to mitigate the impact of major risks on capital, enhancing its financial stability and ability to face unforeseen circumstances.

Walaa Cooperative Insurance Company is keen to develop a corporate culture focused on commitment, transparency, and rapid response to customer complaints, positively reflecting on its reputation and increasing its attractiveness in the rapidly evolving Saudi market for risk management.

Walaa Cooperative Insurance Company plays a pivotal role in supporting the strategic goals of Vision 2030, which focuses on diversifying the economy, enhancing financial sustainability, and improving the quality of life for citizens and residents. By expanding its product base, the company contributes to increasing the insurance-to-GDP ratio, one of the key indicators of the success of the national financial sector.

Walaa works to support small and medium-sized enterprises by providing specialized insurance products that help protect their investments from risks, aligning with the vision's trends in promoting entrepreneurship. The company also invests in digital infrastructure by developing electronic platforms and smart applications that facilitate access to insurance services and increase financial inclusion in society.

In terms of localization and developing national competencies, Walaa Cooperative Insurance Company implements advanced training programs to enhance skill levels in the sector and contributes to providing job opportunities for Saudis in various insurance and administrative specialties. The company is also committed to principles of good governance and corporate social responsibility by supporting national initiatives in health, safety, and financial education.

Through these efforts, Walaa stands out as one of the successful models of national companies that align with the economic and social transformations in the Kingdom and support the achievement of sustainable development goals, with a focus on innovation and leadership in the Saudi insurance sector.

Walaa Cooperative Insurance Company faces a future filled with opportunities and challenges in the changing Saudi insurance market. On the opportunity side, demand for health insurance, engineering insurance, and specialized insurance related to major projects and private sector initiatives is expected to continue to grow, especially with the expansion of economic activities and the implementation of more mandatory insurances such as occupational risks.

The company relies on clear strategies to expand its customer base, develop digital products, and attract partnerships with regional and international institutions. It also bets on the strength of its brand and its commitment to quality and transparency, increasing its attractiveness in the face of competition.

Challenges include heightened competition in the sector, the need for continuous investment in digital technologies, compliance with regulatory changes such as IFRS 17, and controlling claims costs amid rising incidents and medical claims. The company must also deal with capital and reserve requirements imposed by regulatory authorities and ensure continued profit growth to meet shareholder expectations.

Walaa Cooperative Insurance Company's ability to adapt to market changes, innovate in service delivery, and enhance risk management are crucial factors for ensuring sustainable growth and achieving a balance between profitability and future investment. Experience shows that the most flexible and developed companies in facing regulatory and technical challenges are the ones that maintain leadership positions in the Saudi insurance sector.