A look at Saudi insurance sector’s P/E ratio in H1 2024

Tadawul-listed insurance firms traded at a combined price-to-earnings ratio (P/E) of 25.69x, trailing 12 months (TTM), by the end of the first half of 2024, an Argaam survey showed.

The combined market capitalization of local insurance services providers reached around SAR 97.86 billion, based on the Aug. 12 closing prices, as shown in the following table:

As many as 16 insurance firms traded at a P/E ratio below 25.69×, led by Allied Cooperative Insurance Group (ACIG) (5.60x) and Gulf Union Alahlia Cooperative Insurance Co. (7.21x).

Meanwhile, the Company for Cooperative Insurance (Tawuniya) and AlJazira Takaful Taawuni Co. (AlJazira Takaful) neared the sector’s P/E at 25.19x and 25.02x, respectively.

The insurance sector traded at a price-to-book (P/B) ratio of 3.95x. Arabian Shield Cooperative Insurance Co. traded at the lowest P/B ratio of 0.96, while Allianz Saudi Fransi Cooperative Insurance Co. (Allianz SF) and AlJazira Takaful followed at 1.11x and 1.13x, respectively.

Meanwhile, Al Rajhi Co. for Cooperative Insurance (Al Rajhi Takaful) traded at a P/B ratio of 9.52x, as shown below: