Tawuniya shareholders OK SAR 2/shr dividend for 2025

Tawuniya shareholders approved a cash dividend of SAR 2 per share for 2025 at the general assembly meeting. The payout represents 20% of nominal value, matching the board's earlier recommendation.

The approval clears a key item for income-focused holders of the kingdom's largest cooperative insurer by market cap. The company said the distribution reflects its earnings performance over the past financial year. It did not disclose a net income figure during the meeting.

Tawuniya, formally the Company for Cooperative Insurance, writes health, motor, and property lines. The Saudi insurance sector has been consolidating under regulatory pressure from the Saudi Central Bank (SAMA), which pushes for stronger capital buffers and more efficient underwriting. Tawuniya has maintained a dominant market share through that transition, with a branch network across the country.

The dividend will be paid to shareholders on the record date set by the board. The ex-dividend date and payment timeline will be announced after SAMA clearance, the company said. Only shareholders on the register at the close of the record date qualify for the SAR 2 per share payout.

The approval removes the uncertainty around the 2025 distribution. The stock had traded with a modest yield premium relative to some insurance peers, partly reflecting that overhang. Now that the board recommendation has shareholder backing, the stock may see repositioning from dividend-arbitrage flows ahead of the ex-date.