On 2026-08-04 08:06:01 (Saudi Time), Al-Etihad Cooperative Insurance Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

Insurance revenues for the current period (six months ended June 30, 2026) were nearly flat YoY, declining marginally by 0.393% from SAR 605.54 million to SAR 603.16 million, with no significant change cited as the primary driver. However, the net loss attributable to shareholders widened significantly by 21.93% YoY, from SAR 75.61 million to SAR 92.19 million, primarily driven by a decrease in reinsurance recoverables for incurred claims and a decline in investment results (from SAR 20.80 million to SAR 15.37 million). The result of insurance services also deteriorated, with the insurance services loss widening by 7.492% to SAR 50.81 million, reflecting ongoing underwriting pressures. These factors contributed to accumulated losses of SAR 212.90 million (42.6% of paid-up capital), with the company's solvency margin falling below minimum regulatory requirements, raising material going concern uncertainty.

Quarter-on-Quarter Performance Drivers

QoQ insurance revenues were nearly flat at SAR 301.73 million (vs. SAR 301.44 million in the prior quarter, +0.094%), but the net loss attributable to shareholders widened by 33.019% QoQ to SAR 52.63 million (from SAR 39.57 million). The deterioration in net profit was primarily driven by a decline in reinsurance recoverables for incurred claims and a decrease in investment results (falling from SAR 9.43 million to SAR 5.94 million QoQ), which were only partially offset by an increase in the company's share of industry pool profits.

Other Items

Al-Etihad Cooperative Insurance Co.'s interim financial results for the six months ended June 30, 2026 received an unmodified conclusion from the external auditors; however, the auditors included an emphasis of matter paragraph drawing attention to note 2(c), stating: "the Company has incurred a net loss attributable to the shareholders of ⃁ 92.2 million during the six-month period ended June 30, 2026 (six-month period ended June 30, 2025: ⃁ 75.6 million). The Company's net cash used in operating activities for the period then ended amounted to ⃁ 92.8 million (2025: ⃁ 124.8 million). Further, as at June 30, 2026, the Company had accumulated loss of ⃁ 212.9 million (as at December 31, 2025: ⃁ 162.1 million) and the Company's solvency margin has declined below the minimum solvency requirements as mandated by the Insurance Authority. These events and conditions, together with other matters set out therein, indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter." The loss per share for the current period stood at SAR -1.84 (vs. SAR -1.51 for the similar period of last year), calculated based on net losses after zakat of SAR 92,194 thousand divided by 50 million issued shares. Gross Written Premiums (GWP) for the current period amounted to SAR 571,089 thousand, compared to SAR 607,928 thousand for the similar period of last year. Total shareholders' equity declined by 41.272% YoY to SAR 357,391 thousand. As disclosed by the company, accumulated losses as at the end of the second quarter of 2026 amounted to SAR 212,904 thousand, representing 42.6% of the company's paid-up capital of SAR 500,000 thousand, and as accumulated losses have exceeded 35% of paid-up capital, the procedures and instructions for listed companies with accumulated losses of 20% or more of their capital will be implemented. The company stated it "is still implementing a comprehensive corrective plan to address its financial position and improve its operating results," with key initiatives including "reviewing and enhancing pricing efficiency, strengthening governance, particularly in relation to pricing practices, optimizing operating costs, improvement in controls over claims management processes and diversifying the insurance portfolio."

Original announcement:

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