SAICO gets A- rating, stable outlook from Tassnief

Logo of Saudi Arabian Cooperative Insurance Co. (SAICO)

Saudi Arabian Cooperative Insurance Co. (SAICO) received an A- financial strength rating with a stable outlook from SIMAH Rating Agency (Tassnief), according to a statement shared with Argaam.

The rating reflects SAICO’s strong operational track record and its position as a mid-sized insurer in Saudi Arabia, with a market share of about 2% of total gross written premiums (GWP).

Tassnief cited SAICO’s conservative investment approach, sound reinsurance program, low net risk retention, and strong risk-adjusted capital levels. It also noted the company’s solid governance and risk management framework, along with a high-caliber leadership team experienced in insurance, finance, technology, and risk management.

SAICO operates across three main lines: health, motor, and property & casualty insurance. Its premium and customer mix is seen as a positive differentiator compared to peers, reflecting healthy diversification.

Customer segment data showed improved trends in the first nine months of 2024, with individuals and small and medium enterprises (SMEs) contributing around 50% of total premiums. SME growth remains a strategic priority.

Key rating drivers include SAICO’s ability to expand market share, diversify business lines, and maintain underwriting performance and reserve capital. Enhancing financial flexibility by boosting absolute profitability and shareholders’ equity remains critical.