Holding 27% of Saudi Arabia’s insurance market by the end of Q1 2025, The Company for Cooperative Insurance (Tawuniya) is reinforcing its market position with the establishment of Riyadh Reinsurance Co. (Riyadh Re), a wholly owned subsidiary that will provide treaty and facultative reinsurance services.
The Insurance Authority (IA) has approved the new company, which will have share capital of SAR 550 million ($148.5 million) and will be based in Riyadh, according to a filing on Tadawul.
Tawuniya said the creation of Riyadh Re aligns with its ongoing efforts to build an integrated operational structure covering several insurance segments. The insurer continues to hold a sizable share of the Saudi market, with over 4.5 million clients across various categories, according to CEO Othman Alkassabi. He added that the company continues to operate in new segments while monitoring trends in global insurance markets through organic growth.
In recent statements, Alkassabi noted that health insurance revenue accounted for 74% of Tawuniya’s total revenue and 82% of its insurance profit, while motor insurance represented 12% of revenue and 3% of profit. General insurance contributed 13% to revenue and 16% to profit. The protection and savings portfolio contributed about 1% to both revenue and profit as it remains in a growth phase.
The company reported a net profit of SAR 902.4 million ($243.65 million) for the first nine months of 2025, up from SAR 854.1 million ($230.61 million) in the same period a year earlier. Third-quarter earnings reached SAR 173.3 million ($46.79 million). Earlier data from Argaam showed Tawuniya posted SAR 729.1 million ($196.86 million) in net profit for the first half of 2025 compared with SAR 656 million ($177.12 million) a year earlier, with Q2 earnings at SAR 467.42 million ($126.20 million).
Alkassabi said Tawuniya’s investment portfolio has grown to more than SAR 12 billion ($3.24 billion), registering a 13% increase in profitability in Q2 2025 compared with the same quarter last year. He stated that the company has not undertaken any borrowing in the recent period and has financed all ongoing projects using internal resources.
Tawuniya is also working on operational initiatives, including the addition of four new Meena Health Co. facilities, bringing the total to nine. The company has also acquired more than 25 auto repair centers to expand its service network in the motor sector.
In a separate disclosure, Fitch Ratings affirmed Tawuniya’s Insurer Financial Strength rating at “A” with a positive outlook, citing the insurer’s financial position and range of products and services in the Saudi market.
With Riyadh Re now approved, Tawuniya enters the reinsurance market as a direct operator. How do you think this move could influence reinsurance activity in the region? Share your thoughts in the comments.
