On 2026-08-05 08:10:44 (Saudi Time), Amana Cooperative Insurance Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, insurance revenues increased 38.085% YoY to SAR 176.30 million (from SAR 127.68 million), driven by a SAR 37.5 million rise in GWP from sustained new business volume growth, a SAR 12.9 million favorable decrease in unearned premium reserves deduction, and a SAR 1.6 million reduction in premium debtors' provision. However, net loss after Zakat attributable to shareholders widened significantly to SAR 23.23 million from a net loss of SAR 0.25 million in the same period last year, primarily due to a SAR 26.7 million deterioration in the net insurance service result caused by a surge in gross incurred claims and directly attributable expenses overtaking recognized revenue. This was only partially offset by a SAR 3.2 million increase in net investment income and a SAR 0.6 million decrease in other operating expenses from cost-control measures, leaving accumulated losses at SAR 211.05 million, or 49.08% of share capital, raising material uncertainty about the company's ability to continue as a going concern.

Quarter-on-Quarter Performance Drivers

QoQ, insurance revenues rose modestly by SAR 5.17 million (from SAR 85.564 million to SAR 90.738 million(currency not specified in original)), driven by a SAR 47.7 million increase in GWP from additional written business, partially offset by a SAR 42.7 million increase in Unearned Premium Reserves deduction and a higher ECL provision of SAR 0.2 million. However, the net loss attributable to shareholders deepened significantly QoQ, widening from SAR 6.291 million to SAR 16.936 million (a 169.209% increase in loss), primarily due to a SAR 9.9 million deterioration in the net insurance service result driven by surging gross incurred claims and directly attributable expenses outpacing recognized revenue, compounded by a SAR 0.7 million decline in net investment income.

Other Items

The external auditors issued an unmodified conclusion on the interim condensed financial statements for the six-month period ended 30 June 2026; however, they drew attention to Note 2(b), highlighting that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. As stated in the auditors' report: "The Company has incurred a net loss of SAR 23.21 million for the six-month period ended 30 June 2026 (comprehensive income of SAR 2.25 million for the six-month period ended 30 June 2025), and as of that date, the Company's accumulated losses have reached SAR 211.05 million (as at 31 December 2025: SAR 187.82 million), representing 49.08% of the share capital as at 30 June 2026 (as at 31 December 2025: 43.68%)." The auditors further noted that "the Company's ability to continue as a going concern depends on the successful implementation of the measures described in Note 2(b)" and that "the outcome of these measures remains uncertain," while confirming that their conclusion is not modified with respect to this matter. Total shareholders' equity (after deducting minority equity) stood at SAR 287,656 thousand as of the current period, compared to SAR 315,035 thousand in the same period of the prior year, a decline of 8.69%, and loss per share for the current period was SAR -0.54, compared to SAR -0.01 in the same period last year.

Original announcement:

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