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INSURANCESaudi UnitedAlso known asWala’a InsurancePriceSR31.0Pricing / Valuation as on May 27, 2009Mkt capSR0.6bn ($165.6mn)Sh. outstanding20.0mnKey statistics52 week range H/L (SR) 39.4/9.6Avg daily turnover (mn) SR US$3m 31.73 8.4712m 16.78 4.48Raw Beta 6m 2yr1.90 1.24Reuters8060.SEBloombergWALAA ABPrice perform (%) 1M 3M 12MAbsolute (%) (4) 74 3Market (%) 6 32 (39)Sector (%) (2) 48 (26)Website: www.walaa.comValuation multiples2006 2007 2008P/E (x) NA NM NMP/B (x) NA 6.7 1.6P/Sales (x) NA NA NADiv yield (%) NA NA NASaudi United Cooperative Insurance Company (Walaa Insurance) was established atAl-Khobar in 2006 and specializes in business risks and government agencies. Thecompany markets its products and services under the WALAA brand and operatesthrough its branches in Riyadh, Jeddah, Hofouf, and Makah.Company financials2007 2008YoY(%)CAGR(%)(05-08)Net Insurance Premium SRmn NA NA - -Total Revenues SRmn NA NA - -Net Income SRmn (13) (2) - -Assets SRmn 188 187 (0.3) -Equity SRmn 187 181 (3.3) -Investments SRmn 186 182 (1.9) -Technical Reserves SRmn NA NA - -Combined Ratio % NA NA - -Net Mgn % NA NA - -ROE % (6.9) (1.1) - -ROA % (6.9) (1.1) - -Div Payout % NA NA - -EPS SR (0.6) (0.1) NM -BVPS SR 9.4 9.1 (3.3) -Source: Company, NCBC Research, figures for FY 2007 are from July - December 2007.Segment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.06MSCI Saudi (domestic – small cap)Free float (%)Free float 40.00Relative share price perf.11,0009,0007,0005,0003,000JUNE 2009M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)5040302010-Walaa Insurance (RHS)International General Insurance Co -Jordan10.5Abdullah Mohammed Taleb Hakim 5.0Source: NCBC ResearchSource: NCBC Research• Business brief: Walaa offers its products through four broad categories. The assets& earnings insurance segment offers a cover against property & businessinterruption. The liabilities segment covers employers, public, products, &professional risks. Under the employees segment, the company offers life, personalaccident, and healthcare insurance products. Under the goods on the move segment,Walaa offers ocean cargo and inland transit insurance products.• Financials: The Company incurred a net loss of SR2.0mn during 2008. Walaa’s totalassets stood at SR186.9mn and shareholders equity at SR181.0mn at the end of2008.• Recent developments: Walaa reported its 1Q-09 results on April 21, 2009. Thecompany incurred a loss of SR2.3mn in 1Q-09 compared to a loss of SR0.3mn in 1Q-08. In February 2009, the company received the Saudi Arabian Monetary Agency(SAMA)'s approval on offering 30 insurance products for 6 months. The company hasalready received Council of Cooperative Health Insurance's approval to issueinsurance policies in August 2008. In February 2009, Walaa also obtained SAMA’sapproval on Mr. Suleiman Bin Abdulaziz Al Tawijri’s appointment to the company’sboard. In January 2009, the company appointed Mr. Andrew Martin Chweinhauser asnew Chief Executive Officer.WALAA INSURANCE195