Itqan Cap maintains 'Neutral' rating on Tawuniya, TP at SAR 89.90

Tawuniya headquarters

Itqan Capital maintained its “Neutral” recommendation on The Company for Cooperative Insurance (Tawuniya) shares, with a target price (TP) of SAR 89.90.

The pick-up in business activity and reversal of the declining trend in health insurance witnessed during the past two months suggest improved profitability for Tawuniya in H2 2021, Itqan Capital said in a recent report.

The report noted that business activity in Saudi Arabia also expanded at the fastest pace since December 2017, according to the latest Purchasing Managers' Index (PMI) data. This bodes well for employment and, accordingly, medical insurance.

“With 1.7 million uninsured private sector employees and 7 million uninsured vehicles, the medical and motor segments hold a significant potential for growth as enforcement gradually increases and business activity picks up,” the report said.