Strong insurance revenue growth on YoY basis in 2Q25
Insurance revenue increased by 18% YoY but only 2% on QoQ basis, reaching SAR 5,226mn in 2Q25. The YoY growth in insurance revenue was driven by the addition of new clients and expansion in the company’s core business sectors.
Net profit rose in 2Q25 due to solid insurance results
Net profit rose 79% QoQ (+2% YoY) to SAR 467mn in 2Q25, primarily driven by strong insurance service results on the back of higher insurance revenue and better claims management. This offset the sequential decline in investment income.
Maintain Buy rating
Tawuniya is expected to increase gross written premiums from its main business sectors in the coming future. The ongoing momentum in collections and claims management is expected to continue, aiding the company’s financial performance. We retain our target price of SAR 181.9 and maintain our Buy rating on the stock.