Riyadh: Tassnief has assigned national scale Insurer Financial Strength (IFS) rating of A- (Single A Minus) to Saudi Arabian Cooperative Insurance Co. (SAICO or the Company). The outlook on the rating is “Stable”. The assigned rating is indicative of robust financial profile, low risk factors and high prospect of meeting policyholder liabilities.

Rating Rationale: The assigned ratings incorporate Saudi Arabian Cooperative Insurance Co. (SAICO or the Company’s) solid operational track record and current market position as a mid-sized insurance Company with a market share of around 2% in terms of gross premiums. Rating also take into account the Company’s conservative investment profile, sound reinsurance program & low net risk retention, strong risk adjusted capitalization levels and sound governance and risk management framework. The assessment further incorporates a diverse senior leadership team, with expertise across insurance, finance, technology, and risk management sectors.

The Company’s business mix incorporates healthy presence across 3 main segments, i.e. health, motor and property & casualty segments. Diversification in premium and customer mix compares favorably as compared to peers and bodes well from a risk perspective. Gross premiums by customer mix has depicted an improving trend particularly during 9M2024 with individuals and SMEs accounting for around 50% of the gross premiums. Growing business from SMEs remains a key focus area for the Company. 

Rating Triggers: Key rating trigger for the Company would be an increase in market position and a greater diversification in business mix while maintaining current underwriting performance and capitalization buffers. Moreover, strengthening financial flexibility through increasing absolute quantum of profitability and equity base remains important.

About the Company: Saudi Arabian Cooperative Insurance Co. (“SAICO” or the “Company”) is a listed Saudi Joint Stock Company registered in KSA with CR#1010237214 dated August 2007. Currently, 30% shares in SAICO are held by Saudi Arabian Insurance Company B.S.C. Remaining 70% shareholding is held by other investors and the general public. Saudi Arabian Insurance Company B.S.C. is incorporated in the Kingdom of Bahrain and is a 100% owned subsidiary of Damana Holding W.L.L.

For further information on this rating announcement, please contact Mr. Talha Iqbal, email at RS@Tassnief.com.

RELATED CRITERIA AND METHODOLOGY

Rating Methodology for Insurance (v.2. 2024) can be found on the website: www.tassnief.com