Buruj Cooperative Insurance Company - Comprehensive Analysis Report

Summary

Buruj Cooperative Insurance Company was a Saudi joint-stock company specializing in multi-line insurance across the Kingdom of Saudi Arabia. Established on December 27, 2009, and commencing operations on July 1, 2010, the company operated under the supervision of the Saudi Central Bank (SAMA) and was listed on the Saudi Stock Exchange (Tadawul) under the ticker 8270.

The company's vision centered on being recognized for providing superior insurance solutions, with success measured by customer confidence in its excellence across services, expertise, pricing, and values. Its mission was to address the diverse insurance requirements of individuals and businesses, aiding them in managing risks, mitigating losses from unforeseen events, and fostering enduring partnerships built on high-quality insurance solutions.

In a pivotal industry development, Buruj Cooperative Insurance Company successfully merged with The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF) on October 23, 2025. This transaction integrated Buruj into MEDGULF, transferring all its assets, liabilities, and contracts, and ultimately dissolving Buruj as an independent entity. This strategic merger resulted in the creation of the fourth-largest insurer in Saudi Arabia, signifying a major consolidation within the market.

1. Strategic Focus & Objectives

Core Objectives

The primary objectives of Buruj Cooperative Insurance Company included transacting cooperative insurance business and related activities throughout Saudi Arabia. The company aimed to meet the comprehensive insurance needs of both individuals and companies, thereby assisting them in managing daily risks and compensating for losses stemming from unexpected events. A foundational goal was to establish solid, long-term partnerships with clients, ensuring that their needs were understood and addressed through high-quality insurance solutions. Success was measured by customer confidence in the company's ability to consistently deliver excellence in services, expertise, pricing, and overall value.

Specialization Areas

Buruj Cooperative Insurance offered a diverse portfolio tailored for individual and business customers. Its key operational segments included Motor insurance, Medical products, Property, Casualty, Marine products, and an "Others" category encompassing engineering products and general accident and liability.

For individuals, the company provided a range of offerings such as comprehensive and compulsory motor insurance, personal accident coverage, medical malpractice insurance, international travel insurance, and house insurance.

Business insurance programs were extensive, featuring workers' compensation, property insurance against fire and other perils, fidelity guarantee, erection all risk, electronic equipment insurance, money insurance, machinery insurance, marine cargo insurance, health insurance under a unified policy, group life insurance, contractors' all risks, contractors' plant and machinery insurance, professional indemnity insurance, loss of profit due to machinery breakdown insurance, group personal accident insurance, public liability insurance, and boiler and pressure vessel insurance. The company's underwriting strategy for marine insurance specifically aimed for diversified policies in terms of cargo, vessels, and shipping routes to manage risk effectively.

Target Markets

Buruj Cooperative Insurance primarily targeted both individual consumers and business enterprises within the Kingdom of Saudi Arabia. Its market positioning focused on providing comprehensive and cooperative insurance solutions across various sectors and customer needs. The company operated through its headquarters in Riyadh, regional offices in Riyadh, Jeddah, and al-Khobar, and an extensive network of points of sale complemented by its electronic platform.

2. Financial Overview

Funding History

Buruj Cooperative Insurance Company was a publicly listed entity on the Saudi Stock Exchange (Tadawul) from February 15, 2010, with an initial share capital of SAR 300 million.

The company's independent financial trajectory culminated in its merger with The Mediterranean and Gulf Insurance and Reinsurance Company (MEDGULF), finalized on October 23, 2025. This merger was executed through a share swap agreement, wherein MEDGULF issued 33.16 million new ordinary shares to Buruj shareholders. Under the binding merger terms, Buruj shareholders received 1.11 MEDGULF shares for each share they held in Buruj. The transaction assigned a valuation to Buruj of SAR 19.49 per share, leading to an implied total equity value of SAR 584.57 million for the company. The merger significantly increased MEDGULF's share capital from SAR 1.05 billion to SAR 1.38 billion, with former Buruj shareholders collectively holding a 24% stake in the newly combined entity.

3. Product Pipeline

Key Products/Services

Buruj Cooperative Insurance Company offered a wide array of insurance products and services across multiple lines catering to both individual and business clients in Saudi Arabia.

Motor Insurance: Included comprehensive and compulsory motor insurance policies.

Medical Products: Offered medical malpractice insurance and health insurance under a unified policy.

Property Insurance: Provided house insurance, and property insurance covering risks such as fire and other perils.

Casualty Insurance: Encompassed personal accident coverage, workers' compensation, fidelity guarantee, group personal accident insurance, and public liability insurance.

Marine Products: Included international travel insurance and marine cargo insurance.

Other Business Insurance: A diverse category featuring erection all risk, electronic equipment insurance, money insurance, machinery insurance, group life insurance, contractors' all risks, contractors' plant and machinery insurance, professional indemnity insurance, loss of profit due to machinery breakdown insurance, and boiler and pressure vessel insurance.

All these products were active offerings prior to the merger, targeting the full spectrum of individuals and businesses within the Saudi Arabian market. The core benefits highlighted across its product lines were their ability to help clients manage daily risks and provide compensation for losses from unexpected events. The company maintained a specific underwriting strategy for its marine insurance, focusing on diversification across cargo types, vessels, and shipping routes.

4. Technology & Innovation

Technology Stack

Buruj Cooperative Insurance Company utilized an electronic platform to support its operations and client interactions. The company also had a conceptual design for a new expense allocation process, indicating an intent towards optimizing internal financial and operational analytics.

Technical Capabilities

The company possessed capabilities for monitoring the terms and conditions of its insurance contracts. Furthermore, it employed techniques that involved analyzing past claims settlement trends to accurately estimate the cost of both notified claims and incurred but not reported (IBNR) claims, crucial for financial provisioning and risk management.

5. Leadership & Management

Executive Team

Prior to its merger and dissolution as an independent entity, Bader bin Saad Al Ghunaim served as the Chief Executive Officer of Buruj Cooperative Insurance Company.

Recent Leadership Changes

The most significant change affecting the leadership and management structure was the successful merger of Buruj Cooperative Insurance Company with MEDGULF on October 23, 2025. This transaction led to the dissolution of Buruj's independent operational and leadership structure as it transferred all its functions and assets to MEDGULF.

6. Market Analysis

Market Overview

Buruj Cooperative Insurance Company operated within the dynamic Saudi Arabian insurance market. This market has been characterized by a notable trend towards consolidation, aiming to cultivate stronger, more resilient insurance platforms equipped with enhanced operational capabilities and broader customer reach.

The merger of Buruj into MEDGULF on October 23, 2025, represented a significant example of this market trend. This particular merger was also notable as the first successful public merger completed under Saudi Arabia's newly established framework of the Insurance Authority. This set a crucial precedent for future consolidation activities within the Kingdom's insurance sector, signaling an evolving regulatory and competitive landscape. The market environment presented both challenges and opportunities for companies seeking scale and efficiency through strategic combinations.

7. Strategic Partnerships

The most significant strategic initiative for Buruj Cooperative Insurance Company was its merger with The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF). This pivotal alliance culminated on October 23, 2025.

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (MEDGULF)

Nature of Partnership: This was a full merger transaction, where Buruj Cooperative Insurance Company was fully integrated into MEDGULF. All rights, obligations, assets, and contracts of Buruj were transferred to MEDGULF, and Buruj's shares were subsequently cancelled. The merger was executed via a share swap, with MEDGULF issuing new ordinary shares to Buruj shareholders.

Strategic Benefits: The merger was anticipated to yield substantial benefits, including enhanced scale, significant operational synergies, and increased competitiveness within the Saudi insurance sector. It was also expected to expand the combined entity's reach, particularly into the retail and small and medium enterprise (SME) markets.

Collaborative Achievements: The successful completion of this merger created the fourth-largest insurer in Saudi Arabia. It also marked a historical milestone as the first successful public merger to be completed under the newly established framework of the Insurance Authority in Saudi Arabia, setting an important precedent for future transactions in the sector.