Investment Case

Highly Attractive Macroeconomic Trends

Strong socio macroeconomic tailwinds supporting further developments of the FinTech market in the Kingdom, the largest economy in GCC which is expected to grow at a CAGR of 4.6% between the years 2023G and 2027G.

Increasing Importance of Insurance via Vision 2030 Targets

Large government-led digital transformation initiatives backed by the Kingdom's Vision 2030, fueling industry-wide acceleration into a digital economy.

Historical Under-penetration of Insurance in the Kingdom

Insurance penetration in the Kingdom, defined as Gross Written Premium as % of GDP, stands at 1.3% in 2022 which is considerably lower relative to regional market (UAE: 2.5%, Bahrain: 1.7%) and even lower compared to the global average of 6.6%; thereby presenting an opportunity for future growth in the sector.

Supportive Regulatory Tailwinds

The Insurance Authority introduced a number of enforcement measures to enforce adoption of insurance products across different verticals.

Increasing Role of Aggregators in Insurance Distribution

Aggregators are quickly becoming the preferred method of distribution for insurance products fueled by increased digital adoption, superior customer experience, ease of comparability and transparent pricing.

Rasan has gained a dominant market share in the Kingdom across its product offerings and particularly within the motor insurance and leasing segments, benefiting from first mover advantages and its ability to scale.

Tameeni Motor's market share of the total volume of personal motor insurance in terms of GWP increased from 30% in 2020G to C.47% in 2023G.

Treza's market share in terms of GWP increased from 1% in 2020G to 62% in 2023G.

The Group is well-positioned to duplicate the success story of market leadership in the motor insurance segment across other existing and new products and in particular Tameeni Health

The Group also aims to disrupt the corporate health segment through a digital proposition in partnership with health insurance companies.

The Group's proprietary modern platform supercharges operations and fosters innovation through development of new products, continuous upgrading of its platforms and user experience, as well as streamlining operations through superior reliability and unmatched scalability.

Cutting-edge market and customer insights through leveraging artificial intelligence and actuarial capabilities.

As of 30 September 2023G, the Group has partnerships with 24 insurance companies, 22 banks, leasing companies, data providers and several payment portals.

The high reliability and attractive innovative features of the Group's platforms and products promote high levels of customer and partners' adoption and retention.

The Group's GWP grew at a CAGR of 69% from SAR 1.4 billion in the year 2020G to SAR 6.6 billion in the year 2023G.

The Group's revenue increased by 5.9 times from SAR 43.4 million in the year 2020G to SAR 256.2 million in the year 2023G achieving a CAGR of 81% during the same period.

In addition to the significant increase in revenues, the Group consistently achieved profitability during the years 2020G to 2023G

The Group's EBITDA grew at a CAGR of 131% from SAR 5.2 million in 2020G to SAR 63.6 million in the year 2023G for an Adjusted EBITDA margin of 27.7% in the year 2023G.

The Group's net income grew at a CAGR of 332% from SAR 0.6 million in the year 2020G to SAR 46.0 million in the year 2023G for an Adjusted Net Income margin of 20.8% in the year 2023G.

This solid cash flow generation, along with a a robust balance sheet with a net cash position, is underwritten by a financial framework that balances investment for strong profitable growth and return of capital to shareholders.

Protect:

Protect the current market position in the KSA motor market

Maintain focus and agility against an evolving landscape

Target high margin and value-add products to customers

Enhance:

Replicate success of Tameeni Motor in Tameeni Health

Enhance operational and financial performance

Build proven artificial intelligence models capable of leveraging data from various platforms / products

Grow:

Expand presence across the insurance value chain, name through product development, pricing & underwriting solutions (with no underwriting risk), in addition to claims management

Expand into adjacent insurance verticals

Innovate:

Leverage in-house tech stack and capabilities to differentiate revenue streams into coherent digital markets

Diversify:

Expand across FinTech verticals and potentially into new GCC markets

Strategic inorganic growth through strategic acquisitions

The Group's management is supported by a strong corporate governance structure and has strong local market knowledge, regulatory expertise and a deep commitment to maintaining the highest standards of excellence within the Group.