On 2026-07-30 08:04:04 (Saudi Time), The Company for Cooperative Insurance 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 grew 15.942% YoY to SAR 11,996.96 million (from SAR 10,347.36 million), driven by broad-based growth in the company's main business sectors and a 21.49% increase in Gross Written Premiums to SAR 14,526.90 million. However, net profit after Zakat attributable to shareholders declined 16.357% YoY to SAR 609.85 million (from SAR 729.11 million), primarily due to a sharp deterioration in the result of insurance services (before reinsurance), which swung from a gain of SAR 1,817.10 million to a loss of SAR 2,351.45 million, driven by elevated General insurance claims from major Engineering and Energy losses, higher Health insurance claims costs, and an increased loss ratio in the non-retail Motor portfolio. These headwinds were partially offset by a 12.891% increase in net investment income to SAR 416.10 million, a 37.694% reduction in net insurance financing expenses to SAR 43.84 million, and a significant rise in other income to SAR 21.52 million, though higher other operating expenses (up 21.64% to SAR 418.28 million) and increased finance charges (SAR 23.22 million vs. SAR 4.07 million) further weighed on profitability.

Quarter-on-Quarter Performance Drivers

QoQ, insurance revenue rose 7.956% to SAR 6,227.98 million (from SAR 5,768.98 million), driven by broad-based growth in main business lines. However, net profit after Zakat attributable to shareholders increased 11.693% QoQ to SAR 321.77 million (from SAR 288.08 million), as the improvement in net investment income (+30.70% to SAR 235.73 million) and higher pre-Zakat income (SAR 357.30 million vs. SAR 322.48 million) more than offset the deterioration in insurance service results (after reinsurance fell 25.14% to SAR 284.18 million). The decline in insurance service results was primarily driven by several large General line claims (largely offset by reinsurance recoveries), a seasonal shift in Health claims, and an increased loss ratio in the non-retail Motor portfolio.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or reservations noted. For the current quarter (Q2 2026), insurance revenues reached SAR 6,227,981K, with Gross Written Premiums (GWP) of SAR 7,000,842K, representing a 30.35% increase compared to the same quarter of the prior year. The result of insurance services (before reinsurance) for the current quarter amounted to SAR (2,594,000)K, compared to SAR 1,104,421K in the same quarter of last year, a decrease of 334.87%, while after reinsurance it stood at SAR 284,175K, down 41.41% YoY. Net investment income for the quarter increased 35.948% to SAR 235,734K. Net profit after Zakat attributable to shareholders for the current quarter was SAR 321,767K, a decline of 31.16% YoY, with net profit attributable to non-controlling interests of SAR 921K. For the six-month period, basic earnings per share amounted to SAR 4.076 (diluted: SAR 4.068), calculated on an adjusted weighted average of 149,602,114 ordinary shares, compared to SAR 4.862 basic (SAR 4.861 diluted) for the same period of last year. Total shareholders' equity (including non-controlling interest) as at the end of the current period amounted to SAR 5,668,285K, up 14.21% from SAR 4,963,139K at the end of the same period last year. No reclassification of comparison items was reported, and no material risk warnings or going concern issues were disclosed.

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