Saudi Arabian Cooperative Insurance Company (SAICO) Market Research Report

Background

Overview

Established in 1952, the Saudi Arabian Cooperative Insurance Company (SAICO) is one of the Kingdom's pioneering insurance providers. Headquartered in Riyadh, SAICO offers a comprehensive suite of insurance products, including motor, property, casualty, and health insurance, catering to both individual and corporate clients. The company is publicly listed on the Saudi Stock Exchange (Tadawul) under the ticker symbol 8100. With a capital of SAR 300 million, SAICO has consistently maintained a strong presence in the Saudi insurance market.

Mission and Vision

SAICO's mission is to provide quality insurance products and services that offer protection at reasonable prices, fostering successful partnerships with customers, agents, brokers, and other insurance companies. The company's vision focuses on strategic planning to benefit from the anticipated growth in the Saudi insurance sector, aiming to deliver strong returns to shareholders and reliable insurance solutions to customers.

Key Strategic Focus

Core Objectives

SAICO aims to secure a leading position in the Saudi insurance sector by offering tailored insurance solutions to businesses, factories, commercial institutions, and small and medium-sized enterprises (SMEs). The company emphasizes delivering fast, high-quality service, serving SMEs, offering diverse and distinguished insurance services, exceeding customer expectations, and maintaining continuous communication with clients.

Areas of Specialization

SAICO specializes in various insurance lines, including:

Motor Insurance: Providing coverage for corporate fleets and SME vehicles.

Property and Casualty Insurance: Offering protection against property damage and liability risks.

Medical Insurance: Catering to the health insurance needs of individuals and groups.

General Insurance: Including marine cargo, fire, engineering, aviation, and energy insurance.

Key Technologies Utilized

SAICO invests in research and development, particularly in customer service and automation, to enhance operational efficiency and client experience.

Primary Markets Targeted

SAICO primarily targets the Saudi Arabian market, focusing on businesses, factories, commercial institutions, and SMEs, as well as individual clients seeking comprehensive insurance solutions.

Financials and Funding

Funding History

SAICO is a publicly listed company on the Saudi Stock Exchange (Tadawul) under the ticker symbol 8100. The company has a capital of SAR 300 million, with shares traded on the main market under the insurance sector.

Recent Financial Performance

In 2023, SAICO reported a net profit of SAR 71.1 million, a significant turnaround from a loss in the previous year. The company's gross written premium (GWP) increased by 2.2% to SAR 1,061.78 million, and insurance revenues rose by 14.6% to SAR 1,044.52 million.

Credit Rating

In March 2025, SAICO received an "A-" insurance financial strength rating with a stable outlook from SIMAH Rating Agency (Tassnief). This rating reflects the company's solid operational track record, strong capital base, conservative investment profile, sound reinsurance program, and effective governance and risk management framework.

Pipeline Development

SAICO continues to expand its product offerings to meet evolving market demands. In August 2025, the company received final approval from the Saudi Central Bank (SAMA) for two new insurance products: cyber risk insurance and political violence insurance. These additions aim to address emerging risks and provide comprehensive coverage to clients.

Technological Platform and Innovation

Proprietary Technologies

SAICO employs various technologies to enhance its services, including:

Customer Service Automation: Investing in automation to improve customer service efficiency.

Digital Platforms: Utilizing digital platforms to offer seamless insurance services to clients.

Significant Scientific Methods

The company focuses on research and development, particularly in customer service and automation, to enhance operational efficiency and client experience.

Leadership Team

Key Executives

Abdulrahman Saleh Al-Obrah: Chief Executive Officer (appointed March 2023).

Nagib Maurice Bahous: Board Member (appointed July 2023).

Waleed Mohammed Al-Othaimeen: Independent Board Member (appointed May 2023).

Competitor Profile

Market Insights and Dynamics

The Saudi Arabian insurance market is characterized by a diverse range of providers offering various insurance products. SAICO competes with both local and international insurers, striving to maintain a competitive edge through product diversification, customer service excellence, and strategic partnerships.

Competitor Analysis

Key competitors in the Saudi insurance market include:

The Company for Cooperative Insurance (Tawuniya): A leading insurer offering a wide range of insurance products.

Malath Cooperative Insurance Co.: Provides comprehensive insurance solutions across various sectors.

Mediterranean & Gulf Cooperative Insurance & Reinsurance (MEDGULF): Offers diverse insurance products and services.

Salama Cooperative Insurance Co.: Specializes in various insurance lines, including health and life insurance.

Arabian Shield Cooperative Insurance Co.: Provides a range of insurance services to individual and corporate clients.

Strategic Collaborations and Partnerships

SAICO has engaged in strategic partnerships to enhance its market position, including:

Bancassurance Agreement with Banque Saudi Fransi: In April 2023, SAICO signed a bancassurance agreement with Banque Saudi Fransi, aiming to expand its distribution channels and offer integrated financial solutions to clients.

Operational Insights

SAICO's deep-rooted presence in the Saudi insurance market provides it with competitive advantages, including a skilled team of insurance professionals who adapt dynamically to the evolving market. The company's focus on customer service excellence, product diversification, and strategic partnerships positions it favorably in the competitive landscape.

Strategic Opportunities and Future Directions

SAICO's strategic roadmap includes:

Product Diversification: Expanding its product portfolio to include emerging insurance products, such as cyber risk and political violence insurance, to address new market needs.