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INSURANCESaudi Fransi Coop.Also known asALLIANZ SFPriceSR81.8Pricing / Valuation as on May 27, 2009Mkt capSR0.8bn ($218.3mn)Sh. outstanding10.0mnKey statistics52 week range H/L (SR) 111.0/25.0Avg daily turnover (mn) SR US$3m 60.08 16.0412m 37.97 10.14Raw Beta 6m 2yr0.22 0.90Reuters8040.SEBloombergALLIANZ ABPrice perform (%) 1M 3M 12MAbsolute (%) 16 25 (9)Market (%) 6 32 (39)Sector (%) (2) 48 (26)Website:Valuation multiples2006 2007 2008P/E (x) NA NM NMP/B (x) NA 13.7 6.3P/Sales (x) NA NA 54.4Div yield (%) NA NA NASaudi Fransi Cooperative Insurance Company (ALLIANZ SF), formerly known asInsaudi Insurance Company, was established in 2006 in Riyadh. The Company is asubsidiary of Banque Saudi Fransi (member of the Calyon Group) and AssurancesGenerales de France (member of the Allianz Group).Company financials2007 2008YoY(%)CAGR(%)(05-08)Net Insurance Premium SRmn NA 7 - -Total Revenues SRmn NA 8 - -Net Income SRmn (16) (14) - -Assets SRmn 104 210 101.8 -Equity SRmn 84 66 (21.3) -Investments SRmn 100 72 (28.2) -Technical Reserves SRmn NA 58 - -Combined Ratio % NA 16.3 - -Net Mgn % NA NM - -ROE % (18.8) (18.8) - -ROA % (15.2) (9.0) - -Div Payout % NA NA - -EPS SR (1.6) (1.4) - -BVPS SR 8.4 6.6 (21.3) -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 31.00Relative share price perf.11,0001509,0001007,000505,0003,000-M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASIALLIANZ SF (RHS)Top 5 shareholders (%)Banque Saudi Fransi 32.5AGF International Co. 16.2SNI Holding Co. 16.2Source: NCBC ResearchSource: Company, NCBC Research• Business brief: ALLIANZ SF offers multiple insurance solutions through two mainsegments- individual and corporate. Under the individual solutions segment, thecompany provides Shariah compliant insurance products including individual financialplanning (for education, protection, and retirement), family income protection, life anddisability insurance, and corporate solutions assurance. The corporate solutionssegment offers insurance cover against fire, general accident, construction/erectionengineering, marine cargo and employee compensation.• Financials: The Company earned net premium of SR7.1mn in 2008, howeverincurred a net loss of SR14.2mn over the same period due to significant general andadministrative expenses. The company’s shareholder equity and investments alsodeclined y-o-y by 21.3% and 28.2% respectively.• Recent developments: The company reported its 1Q-09 results on April 21, 2009.The company recorded a loss of SR3.3mn in 1Q-09 compared to a loss of SR3.7mnin the year ago period. In December 2008, ALLIANZ SF appointed Mr. Samir BinMohammed on the Board of Directors (BOD) to replace Mr. Abdulaziz Al Mechaalwho resigned in February 2008. During October 2008, the company announced itsplan to raise capital through issuance of new preference shares worth SR100 mn.The company has not disclosed further details.JUNE 2009SAUDI FRANSI COOPERATIVE INSURANCE196