Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful; ART), among the biggest insurers in Saudi Arabia, is expected to continue its earnings trend over the next two years, supporting its capital adequacy and growth targets, says S&P Global Ratings (S&P).
In a rating commentary, S&P said, “Our base-case scenario assumes net profits of SAR350m ($93.3m) to SAR450m annually over 2025-2027. We understand the company is committed to fully retaining its profits to support growth prospects. We therefore did not factor any dividends into our base-case scenario.”
Revenue growth to remain significant over the next two years
S&P added, “Following increased competition in motor and medical lines in 2025, we expect top-line growth will be moderate this year at about 10%-15%, since ART discontinued its nonperforming business. We understand that rates in motor, ART’s largest business line, started to increase during the third quarter of 2025. We therefore expect insurance revenue growth to pick up over 2026-2027 to about 20%-25% per year.”
ART is by far the largest P&S insurer, with a market share of about 75% at half-year 2025, S&P noted. The global credit rating agency expects ART’s P&S business to reach about SAR1bn by 2027, tripling its current size and cementing its position as a market leader, despite operating from a relatively small base.
S&P has affirmed its ‘A-’ long-term insurer financial strength rating and ‘ksaAAA’ Saudi national scale rating on ART. The outlook on both ratings is stable.
S&P added, “The stable outlook indicates our expectation that, despite the anticipated material business growth, ART will sustain capital adequacy at the 99.95% confidence level over the next two years and operating performance in line with our base-case scenario.”
In a stock exchange statement, ART pointed out that the rating reflects its position as the third-largest insurer in Saudi Arabia and a market leader in motor, protection, and savings products, which supports its strong competitive standing in the insurance market. M