SICO initiates coverage for Saudi insurers Bupa Arabia, Tawuniya

Bahrain-based SICO Investment Bank has initiated coverage on Bupa Arabia for Cooperative Insurance (Bupa Arabia), recommending a “Buy” on the stock and setting its target price at SAR 85.

 SICO also started coverage on the Company for Cooperative Insurance (Tawuniya) with a “Neutral” recommendation and a target price of SAR 65.

Both Saudi insurers accounted for 45 percent of the industry’s gross revenue in the first nine months of 2018. They are relatively unaffected by the expats’ leave in Saudi Arabia, the investment bank said.

“Bupa is one of our top-picks, as it maintained a sustainable growth rate; it boosted its market share from 18 percent in 2009 to 48 percent in the nine-month period,” it added.

Tawuniya is forecast to continue growing its market share, SICO noted, adding that the insurer excelled many of its peers.