A look at Saudi insurance sector’s P/E ratio in Q1 2024

Tadawul-listed insurance firms traded at a combined price-to-earnings ratio (P/E) of 25.9x, trailing 12 months (TTM), by the end of the first quarter of 2024, an Argaam survey showed.

The combined market capitalization of local insurance services providers reached around SAR 94.6 billion based on the May 19 closing prices, as shown in the following table:

As many as 14 insurance firms traded at a P/E ratio below 25.9×, led by Allied Cooperative Insurance Group (ACIG) (7.3x) and Saudi Arabian Cooperative Insurance Co. (SAICO) (7.6x). Meanwhile, AlJazira Takaful Taawuni Co. (AlJazira Takaful) and United Cooperative Assurance Co. (UCA) neared the sector’s P/E at 23.5x and 23.7x, respectively.

Arabian Shield Cooperative Insurance Co. traded at the lowest price-to-book (P/B) ratio of 1.1x, while AlJazira Takaful and Buruj Cooperative Insurance Co. followed at 1.23x and 1.33x, respectively. Meanwhile, Al Rajhi Co. for Cooperative Insurance (Al Rajhi Takaful) traded at a P/B ratio of 7.6x, as shown below: