Saudi Insurance Sector- Quarterly

Saudi Insurance Sector Quarterly Q32018 Head of Research Talha Nazar +966 11 2256250 t.nazar@aljaziracapital.com.sa

Company Name The Company for Cooperative Insurance Cooperative Insurance Co. Cooperative Assurance Co. AlRajhi Company for Cooperative Insurance for Cooperative Insurance Co. Allied Cooperative Insurance Group for Cooperative Insurance Co. Cooperative Insurance Co. Cooperative Insurance Co. Al Sagr Cooperative Insurance Co. Malath Cooperative Insurance Co. Saudi Takaful Co. Cooperative Insurance Co. Sanad Cooperative Insurance Company Walaa Cooperative Insurance Co. Allianz Saudi Fransi Cooperative Insurance Co. AlAhlia Insurance Co. The Mediterranean and Gulf Insurance and Reinsurance Co. Saudi Indian Company for Cooperative Insurance Co. Saudi Arabian Cooperative Insurance Company Cooperative Insurance Co. for Cooperative Reinsurance Co. Arabia Insurance Cooperative Company ALAHLI TAKAFUL COMPANY AXA Cooperative Insurance Co. Weqaya Takaful insurance and reinsurance Company CHUBB Arabia Cooperative Insurance Co. Cooperative Insurance Co. Insurance Co. Amana Cooperative Insurance Co. Saudi Cooperative Insurance Co. arine Co. MetLife AIG ANB Cooperative Insurance Co. Aljazira Takaful Taawuni Co. Codes Sanad Walaa Wafa Insurance AXACooperative Weqaya Takaful Alinma Tokio MetLife

GWP (Gross Written Premiums) in Q318 stood at SAR 8.66bn depicting a jump of 4.8% Y/Y. NWP (Net Written Premiums) Q318 stood at SAR 7.47bn, depicting a jump of 9.0%Y/Y. NPE (Net Premium Earned) in Q318 at SAR 7.47bn showed a decline of 3.0%Y/Y. In Q318, Health Sector accounted for 62.9% of the total GWP, followed by Motor which accounted for 22.7% of GWP. Market Share BUPA with 32.7% market share in GWP was the biggest player, followed by at 13.9%. Gainer/Loser: MedGulf improved its market share from 6.2% in Q317 to 9.7% in Q318 an improvement of 340bps, followed by Bupa which showed an improvement of 217bps. lost its market share from 17.2% in Q317 to 13.9% in Q318. Retention Ratio: Industry retention ratio stood at 86.3% in Q318, as compared to 79.2% in Q317. BUPA has the highest retention ratio of 99.15% in Q318, Al Rajhi Takaful at 96.2% had the second highest retention ratio. GWPSector WIse NPESector Wise Gross Written Premium 12000 30.2% 26.7% 24.2% 22.6% 22.7% 21.5% 10000 18.3% 19.3% 8000 12.2% 6000 4000 2000 0 Premium CededIndustry 12,000 10,000 8,000 6,000 4,000 2,000 0 Q1 2013 Q4 2012 Q2 2013 Q1 2013 Q3 2013 Q2 2013 Q4 2013 Q3 2013 Q1 2014 Q4 2013 Q2 2014 Q1 2014 Net Premium Earned Q3 2014 Q2 2014 Q4 2014 Q3 2014 Q1 2015 Q4 2014 Q1 2015 Q2 2015 Premium Ceded LHS 11.9% 2.2% 24.6% 16.7% 2.0% 15.5% 9.5%2.1% 2.6% Q2 2015 Q3 2015 GWP LHS Q3 2015 Q4 2015 Q4 2015 Q1 2016 Q1 2016 Q2 2016 Q2 2016 Q3 2016 % Growth (YoY) RHS Q3 2016 Q4 2016 Retention Ratio RHS Q4 2016 Q1 2017 Q1 2017 Q2 2017 Q2 2017 5.60% Q3 2017 Q3 2017 0.77% Q4 2017 Q4 2017 2.93% Q1 2018 0.00% 14.12% Q1 2018 Q2 2018 Q2 2018 Q3 2018 Q3 2018 32.0% 28.0% 24.0% 2 16.0% 12.0% 8.0% 4.0% 4.0% 8.0% 12.0% 16.0% 2 90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70% 23% Top 5 and Bottom 5 Retention Ratio Gross Written Premium Market Share Top 5 Gainers and Losers GWP market Share 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1 Basis Points 7% 3% 4% 63% Health Motor Property/ Fire Protection and Saving Others Bupa Al Rajihi Malath Chubb Gulf Alinma General 4.7% 30.9% 8.1% 1% 3% 2% 9.7% 13.9% 70% 32.7% Health Motor Protection and Saving Accident and Liability Others AXACooperative Others 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 4.0% 3.0% 2.0% 1.0% 1.0% 2.0% 3.0% 4.0% 17.8% Q1 2013 26.9% 23.9% Q2 2013 3.4% Q3 2013 16.9% Q4 2013 2.17% 32.1% 27.3% 24.4% 25.1% 27.2% 26.1% 23.8%24.8% 19.9% 6.8% 2.2% 20.9% Q1 2014 Q2 2014 1.28% Q3 2014 Q4 2014 1.0% Q1 2015 Q2 2015 NPE Q3 2015 0.6% Q4 2015 Q1 2016 3.3% Q2 2016 % Growth (YoY) RHS Q3 2016 Q4 2016 2.7% 2.4% 4.4% 2.3% 0.8% 1.4% 4.4% Q1 2017 Q2 2017 Wafa Insurance Q3 2017 Q4 2017 1.2% 1.1% Q1 2018 Q2 2018 0.9% Source: Argaam, SAMA 35.0% 3 25.0% 2 15.0% 1 5.0% 5.0% 1

GCP (Gross Claims Paid) in Q318 stood at SAR 6.6bn depicting a jump of 9.0% Y/Y.. NCI (Net Claim Incurred) in Q318 stood at SAR 5.9bn, depicting a rise of 2.8%Y/Y. Market Share BUPA with 27.7% market share in GWP paid the highest claims of SAR 1.83bn, followed by at 26.% market share in claims. Aljazira Takaful paid the lowest claims of SAR 1.8mn. Gross Claims Paid 7,500 27% 6,000 24% 19% 17% 4,500 3,000 1,500 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 31% Q3 2014 18% 23% 24% Q4 2014 Q1 2015 Q2 2015 9% Q3 2015 28% Q4 2015 13% Q1 2016 9% Q2 2016 Gross Claims Paid LHS 7% Q3 2016 3% Q4 2016 1% Q1 2017 7% Q2 2017 7% Q3 2017 % Growth (YoY) RHS 9% Q4 2017 5% 2.3% 9.0% Q1 2018 Q2 2018 Q3 2018 35% 30% 20% 15% 10% 5% 0% 5% 10% In Q318, Health sector accounted for the highest share in claims at 70.1%, followed by Motor sector at 26.1%. had the highest loss ratio of 101.6% in Q318,followed by at 100.9% in Q318. Aljazira Takaful had the lowest loss ratio of 2.9%. Aljazira Takaful had the lowest combined ratio of 29%. Net Claims Paid 7,000 6,000 5,000 4,000 3,000 2,000 1,000 66% 38% 40% Q2 2013 Q3 2013 Q4 2013 Q1 2014 17% 17% Q2 2014 Q3 2014 7% Q4 2014 24% 23% 21% Q1 2015 Q2 2015 Q3 2015 29% Q4 2015 Q1 2016 Net Claims Paid LHS 17% 19% 7% Q2 2016 Q3 2016 2% 0.2% 3.4% 13.2% Q4 2016 Q1 2017 Q2 2017 % Growth (YoY) RHS Q3 2017 19.7% 5.3% 5.5% 2.8% Q4 2017 Q1 2018 Q2 2018 Q3 2018 70% 65% 60% 55% 50% 45% 40% 35% 30% 20% 15% 10% 5% 0% 5% 10% 15% 20% Claims Market ShareCompany wise Claims Market Sharesector wise Claims PaidCompany wise 2% 3% 7% 9% 27.7% 26.0% Others Malath AXA %26 1% 1% 2% %70 Health Motor Protection and Saving Property/ Fire Others IN MN SAR 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 AXACooperative Q3 2018 Q3 2017 Wafa Insurance Loss Ratio Combined Ratio 12 10 Q3 2017 Q3 2018 250% 200% Q3 2018 Q3 2017 8 6 4 2 Al Rajhi Takaful AXACooperative 150% 100% 50% 0% 50% AXACooperative Wafa Insurance Source: Argaam, SAMA, AlJazira Capital

Net income for the sector stood at SAR 260.0mn in Q318, as compared to SAR 659.0 mn in Q317, depicting a fall of 60.6%Y/Y. Net income before Zakat stood at SAR 352.5mn, depicting a fall of 53.4%. with net income of SAR 224.6mn, showed a rise of 13.3%Y/Y. Bupa showed the highest surplus, from its insurance operations, at SAR 247.5, depicting a rise of 7.9%Y/Y. Rajhi Takful showed the highest investment income of SAR 61.3mn in the sector, registering a rise of 28.4%Y/Y. In MN SAR Net Income 1,100 894 %66.6 YOY 789 757 %136.4 QOQ 700 548 456 474 215 270 287 364 406 451 310 300 172 259.4 135.7 46 11 28 (100) (500) (373) (900) (1,300) (1,141) Net IncomeCompany wise 150.00 100.00 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Aljazira Takaful showed the highest Operating margins at 2.8%, and net margin at 31.4%. Rajhi takaful posted the highest ROE of 30.4% Walaa posted the highest ROA of 6.1 %. In Mn SAR 50.00 0.00 50.00 100.00 AXACooperative Operating MarginsHighest 10 Net MarginsHighest 10 Surplus From Insurance Operations 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Jazira Takaful Chubb Arabia Trade Arabian AXA Union Shield 35.0% 3 25.0% 2 15.0% 1 5.0% Jazira Takaful Chubb Walaa AlAlamiya Arabian Trade Arabia Shield Union In Mn SAR 300 250 200 150 100 50 0 50 100 AXACooperative ROETop 5 /Bottom 5 ROATop 5/ Bottom 5 Investment Income 4 2 2 4 6 8 Al Rajihi Trade Union Bupa Wafa Amana MetLife AIG 1 5.0% 5.0% 1 15.0% 2 25.0% 3 Walaa Al Rajihi Bupa Chubb Amana MetLife In Mn SAR 45 40 35 30 25 20 15 10 5 0 AXACooperative Wafa Insurance Source: Argaam

had the lowest PE of 7.0x, followed by with a PE of 7.5x. for Cooperative Reinsurance Co has the lowest PB of 0.7x, followed by with a PB of 1.1x Only 4 companies gave out dividends, had the highest dividend yield of 3.9%. Tadawul Insurance Index 1 Yr Performance 5000 4800 4600 4400 4200 4000 3800 3600 3400 3200 TASI (LHS) Insurance Sector (RHS) 1 Yr Performance 100 90 80 70 60 50 40 TASI (LHS) (RHS) Lowest PE 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 WALAA CHUBB Ahlia AlRajhi Takaful Lowest PB 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Sagr U C A MALATH CHUBB BUPA1 Yr Performance 95 85 75 65 55 45 35 TASI (LHS) Bupa (RHS) Alrajhi Takaful1 Yr Performance 90 85 80 75 70 65 60 55 50 45 40 TASI (LHS) Alrajhi takaful (RHS) Highest Dividend Yield 4.5% 4.0% 3.9% 3.8% 3.5% 3.0% 2.8% 2.5% 2.0% 1.9% 1.5% 1.0% 0.5% Medgulf1 Yr Performance Walaa1 Yr Performance Top 5 CompaniesMarket Cap 24 22 20 18 16 14 12 10 TASI (LHS) Medgulf (RHS) 35 33 31 29 27 25 23 21 19 17 15 TASI (LHS) WALAA (RHS) In Mn SAR 12,000 10,000 8,000 6,000 4,000 2,000 AlRajhi Takaful

APPENDIX 1 GWP YoY QoQ NWP YoY QoQ NPE YoY QoQ Q32017 Q22018 Q32018 Q32017 Q22018 Q32018 Q32017 Q22018 Q32018 1,421 1,756 1,208 15.0% 31.2% 1,161 1,404 991 14.6% 29.4% 1,759 1,832 1,883 7.0% 2.8% 159 224 153 3.8% 31.8% 148 213 145 2.5% 32.2% 113 168 181 60.3% 7.9% 116 89 121 4.0% 36.2% 39 28 32 15.7% 16.5% 146 52 37 75.0% 3 Al Rajhi Takaful 742 638 703 5.2% 10.2% 711 611 672 5.4% 10.1% 407 686 719 76.5% 4.8% 57 56 55 3.5% 2.1% 21 31 25 18.4% 19.2% 50 46 39 22.5% 14.4% 113 114 165 45.9% 44.2% 98 103 151 53.8% NM* 110 87 82 24.9% NM* 2,523 2,020 2,832 12.3% 40.2% 2,497 1,992 2,814 12.7% 41.2% 1,939 1,909 1,937 0.1% 1.4% 115 93 173 49.8% 84.9% 79 63 145 83.5% 128.9% 102 122 106 3.3% 13.5% 95 84 71 24.6% 15.3% 81 69 60 25.6% 13.4% 100 117 131 30.7% 11.6% 61 78 94 53.8% 20.8% 56 62 81 46.2% 32.1% 95 42 58 39.1% 36.6% 62 130 150 142.1% 15.4% 55 104 142 156.9% 36.2% 351 227 220 37.3% 3.2% 37 38 60 61.1% 57.0% 30 36 48 58.4% 34.0% 52 43 40 23.7% 8.0% 103 221 218 112.5% 1.2% 77 191 200 160.7% 4.5% 193 189 176 9.0% 6.9% 284 248 257 9.6% 3.6% 174 137 166 4.5% 21.4% 161 200 196 21.7% 2.2% 147 225 141 4.5% 37.5% 102 108 103 0.4% 4.7% 130 166 160 23.3% 3.6% 53 43 52 1.8% 21.2% 48 39 49 2.9% 27.6% 43 37 37 15.5% 1.4% 513 278 836 63.0% 201.0% 426 245 738 73.4% 201.5% 714 586 565 20.9% 3.7% Wafa Insurance 100 23 10 10 62 14 10 10 126 101 98 22.4% 3.3% 51 36 41 18.6% 12.9% 39 27 30 22.6% 9.9% 32 34 33 3.0% 4.3% 157 213 160 1.5% 25.0% 142 170 125 12.0% 26.3% 124 130 142 14.6% 9.1% 32 50 48 49.3% 3.3% 17 32 30 71.9% 7.5% 23 56 54 130.2% 4.1% 303 62 83 72.5% 33.9% 89 43 51 42.9% 18.7% 119 143 150 26.0% 5.0% 59 77 96 63.7% 24.5% 38 57 63 68.7% 11.1% 70 73 54 23.8% 26.4% 120 49 115 3.9% 135.2% 21 5 28 31.1% 480.3% 21 21 16 24.3% 24.3% AXACooperative 369 184 406 10.1% 120.9% 334 168 365 9.1% 117.4% 265 323 300 13.5% 6.9% 42 53 32 23.2% 38.9% 14 25 9 39.8% 66.3% 29 27 26 11.1% 2.7% 26 73 48 87.8% 33.7% 11 45 28 160.8% 37.4% 34 29 23 31.8% 19.5% 152 164 177 16.7% 7.5% 88 113 112 28.2% 0.6% 65 74 73 11.9% 1.7% 9 35 33 273.6% 3.9% 7 21 20 185.5% 5.2% 58 14 11 81.6% 24.1% 59 51 (2) 102.7% 103.1% 60 36 (2) 103.2% 105.3% 14 34 52 270.2% 55.5% 51 101 66 30.2% 34.8% 27 40 26 5.7% 35.3% 33 32 35 4.0% 9.1% 103 26 16 84.7% 39.2% 89 16 (1) 101.2% 106.9% 42 55 69 66.1% 25.5% 28 16 50 81.0% 209.6% 13 4 25 89.0% 580.6% 7 9 7 2.9% 18.9% Total 8,261 7,549 8,660 4.8% 14.7% 6,854 6,252 7,472 9.0% 19.5% 7,529 7,665 7,706 2.4% 0.5% Source: Argaam, *NM: Not meaningfull

APPENDIX 2 Gross Claims Paid YoY QoQ Net Claims Paid YoY QoQ Q32017 Q22018 Q32018 Q32017 Q22018 Q32018 1,512 1,970 1,718 13.6% 12.8% 1,488 1,647 1,606 7.9% 2.5% 113 129 142 25.2% 9.9% 128 139 146 14.5% 4.9% 60 44 45 25.1% 1.5% 15 2 14 4.6% 563.0% Al Rajhi Takaful 462 515 568 23.1% 10.3% 592 588 540 8.7% 8.2% 18 21 39 113.6% 80.5% 12 13 17 44.8% 29.2% 60 76 87 44.2% 14.1% 57 70 87 52.4% 24.3% 1,536 1,642 1,832 19.3% 11.6% 1,475 1,538 1,632 10.6% 6.1% 69 75 99 43.3% 31.2% 61 67 65 6.3% 3.1% 59 62 52 11.2% 15.5% 78 43 35 55.5% 19.7% 26 47 46 77.3% 1.9% 35 47 39 9.9% 17.7% 198 130 165 16.6% 27.3% 168 96 104 37.8% 8.4% 24 26 31 27.7% 16.7% 6 21 35 523.3% 70.7% 141 115 133 6.0% 15.7% 116 114 120 3.3% 4.7% 101 116 127 26.0% 9.5% 107 126 124 16.2% 1.1% 160 130 150 6.0% 15.0% 124 111 111 10.6% 23 27 28 24.8% 4.9% 22 24 25 13.3% 5.7% 632 558 483 23.5% 13.3% 459 367 376 18.2% 2.4% Wafa Insurance 96 99 10 10 74 40 10 10 8 16 6 29.7% 63.5% 3 29 22 622.5% 24.3% 110 95 122 11.2% 28.9% 95 116 126 31.8% 8.9% 50 45 40 21.4% 11.5% 31 29 23 23.1% 18.3% 57 92 95 65.9% 2.8% 114 93 96 15.8% 2.8% 47 48 47 0.5% 1.1% 27 35 33 23.8% 6.2% 18 27 24 37.5% 10.3% (1) 7 8 1208.2% 19.4% AXACooperative 203 266 201 0.8% 24.4% 238 239 241 1.4% 0.8% 31 12 11 63.8% 5.1% 10 8 6 42.1% 20.3% 39 26 36 6.0% 39.8% 10 15 22 118.6% 47.2% 80 62 81 1.2% 31.5% 49 47 74 50.1% 55.7% 10 10 12 26.8% 22.2% (10) 4 12 230.5% 249.1% 31 71 64 110.4% 9.4% 31 47 52 68.7% 12.0% 30 46 60 102.2% 31.2% 18 34 33 86.6% 1.3% 59 81 64 8.7% 21.0% 66 51 27 59.1% 46.8% 2 2 2 12.6% 18.8% 2 0 1 64.7% 193.9% Total 6,062 6,681 6,610 9.0% 1.1% 5,701 5,807 5,854 2.7% 0.8% Source: Argaam, *NM: Not meaningfull

APPENDIX 3 Net income Before Zakat YoY QoQ Net Income YoY QoQ Q32017 Q22018 Q32018 Q32017 Q22018 Q32018 (10.4) (1.3) 2.8 126.6% 313.6% (10.9) (1.8) 2.3 120.8% 228.5% 6.8 6.5 7.9 15.0% 20.7% 6.5 6.3 7.4 14.2% 18.0% 159.7 38.3 (22.9) 114.3% 159.8% 141.5 24.9 (38.0) 126.8% 252.4% 11.1 5.3 10.0 9.7% 89.4% 9.6 3.0 7.8 NM* 155.4% 60.1 (8.6) (79.8) 232.7% 824.2% 56.6 (10.6) (80.8) 242.8% 665.3% 8.0 9.6 9.2 15.7% 3.4% 6.4 7.4 7.9 24.3% 7.8% 22.0 9.0 5.8 73.5% 35.5% 20.8 7.5 4.3 79.2% 42.5% 44.4 34.3 22.6 49.1% 34.3% 41.1 30.4 18.6 54.8% 38.7% 23.1 6.7 4.6 79.9% 30.7% 19.8 3.7 2.0 89.7% 44.9% 2.1 0.4 (3.3) 262.3% 963.1% 0.7 (1.1) (4.7) 764.8% 319.3% 16.4 0.4 (7.4) 144.9% 1876.3% 14.4 (2.0) (9.6) 166.8% 388.3% Wafa Insurance (3.6) (10.7) 10 10 (5.2) (10.7) 10 10 2.0 (10.7) (7.1) 452.7% 34.0% 0.9 (10.7) (7.1) 861.9% 34.0% 8.7 7.4 6.0 30.5% 17.9% 0.3 6.0 6.5 1788.4% 8.3% 3.2 3.6 4.5 43.6% 27.7% 2.0 3.1 3.4 69.2% 9.1% 3.9 2.9 (1.1) 128.0% 137.6% 3.0 (0.1) (2.2) 175.0% 1543.0% 3.9 1.3 1.1 70.3% 12.4% 2.5 (0.3) (0.9) 136.2% 240.4% 16.7 25.4 31.2 87.0% 22.9% 16.7 22.4 26.2 57.1% 17.1% 19.6 11.1 (9.4) 148.1% 184.9% 17.8 9.6 (8.7) 148.7% 190.5% 8.2 7.9 4.7 42.8% 41.0% 5.8 6.4 3.4 41.2% 46.5% 14.1 (0.3) (5.0) 135.4% 1618.3% 14.5 (1.2) (5.6) 138.6% 376.8% AXACooperative 12.6 24.1 19.0 51.2% 21.1% 8.8 17.0 14.7 66.6% 13.5% 4.6 (0.8) (6.7) 245.6% 733.1% 3.4 (2.3) (7.8) 325.8% 240.2% 24.0 16.1 25.5 6.1% 58.5% 21.4 13.0 22.2 4.0% 70.8% 8.8 6.2 7.9 10.8% 27.0% 4.8 1.3 5.2 6.8% 301.7% (0.3) 6.4 10.0 3800.7% 55.8% (3.6) 3.3 6.9 289.9% 109.5% (2.2) 3.1 (11.9) 451.4% 487.3% (3.7) 1.1 (13.9) 280.4% 1386.3% 217.0 178.9 244.8 12.8% 36.9% 198.2 156.3 224.6 13.3% 43.7% 7.5 1.3 7.8 3.8% 503.3% 7.5 (2.2) 4.1 45.3% 287.2% 7.8 10.3 5.2 33.4% 49.4% 5.8 8.3 3.5 39.2% 57.8% 0.7 23.4 3.7 409.3% 84.2% 0.1 22.8 3.1 2328.1% 86.4% 58.7 52.9 77.4 31.9% 46.4% 55.6 48.5 71.1 27.9% 46.7% (3.2) (9.3) (4.7) 46.0% 49.2% (4.3) (10.7) (6.1) 41.7% 43.0% Total 756.1 451.0 352.5 53.4% 21.8% 659.0 348.7 260.0 60.6% 25.5% Source: Argaam, *NM: Not meaningfull

APPENDIX 4 Market Cap PE PB Dividend Yield 7,575.00 M 3.5 METLIFE AIG ANB 363.60 NM* 2.2 619.50 20.8 1.6 3.85% MALATH INSURANCE 602.00 NM* 1.3 1,358.40 NM* 3.6 515.00 13.3 1.9 387.50 10.4 1.4 WALAA 959.20 7.5 1.4 537.00 8.1 1.3 615.40 M 1.8 348.00 45.1 1.1 WAFA Insurance 95.00 204.00 272.0 1.3 461.65 16.4 1.9 2.84% AlAhlia 182.08 10.6 1.5 365.60 52.8 2.6 488.13 51.7 1.9 712.25 7.0 1.6 495.20 23.5 1.1 3.76% U C A 451.20 M 1.1 604.26 14.3 0.7 8,676.00 16.2 3.4 1.93% AlRajhi Takaful 2,680.00 12.1 3.5 CHUBB 366.40 9.7 1.3 AXA Cooperative 1,057.50 13.6 1.8 265.20 M 1.4 617.50 7.5 1.4 1,388.00 37.9 3.6 372.00 M 1.3 480.00 11.3 1.9 280.56 M 2.7 273.00 NM* 3.5 511.20 NM* 2.0 Sector 34,907.33 14.3 2.3 Source: Argaam, *NM: Not meaningful

RESEARCH DIVISION Head of Research Talha Nazar +966 11 2256250 t.nazar@aljaziracapital.com.sa Analyst Sultan Al Kadi, CAIA +966 11 2256374 s.alkadi@aljaziracapital.com.sa Analyst Jassim AlJubran +966 11 2256248 j.aljabran@aljaziracapital.com.sa Analyst Waleed AlJubayr +966 11 2256146 W.aljubayr@aljaziracapital.com.sa Analyst Muhanad AlOdan +966 11 2256115 M.alodan@aljaziracapital.com.sa BROKERAGE AND INVESTMENT CENTERS DIVISION General Manager Brokerage Services & sales Alaa AlYousef +966 11 2256060 a.yousef@aljaziracapital.com.sa AGMHead of international and institutional brokerage Luay Jawad AlMotawa +966 11 2256277 lalmutawa@aljaziracapital.com.sa AGM Head of Western and Southern Region Investment Centers Mansour Hamad AlShuaibi +966 12 6618443 m.alshuaibi@aljaziracapital.com.sa AGMHead of Sales And Investment Centers Central Region Sultan Ibrahim ALMutawa +966 11 2256364 s.almutawa@aljaziracapital.com.sa AGMHead of Qassim & Eastern Province Abdullah AlRahit +966 16 3617547 aalrahit@aljaziracapital.com.sa RESEARCH DIVISION RATING TERMINOLOGY AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further valueadded services, brokerage across MENA and International markets, as well as offering a full suite of securities business. 1. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated Overweight will typically provide an upside potential of over 10% from the current price levels over next twelve months. 2. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated Underweight would typically decline by over 10% from the current price levels over next twelve months. 3. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated Neutral is expected to stagnate within +/ 10% range from the current price levels over next twelve months. 4. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company. Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (inhouse or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or thirdparty persons/institutions who signed a nondisclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations. Asset Management Brokerage Corporate Finance Custody Advisory Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia Tel: 011 2256000 Fax: 011 2256068 Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 0707637