On 2026-08-04 08:07:34 (Saudi Time), The Mediterranean and Gulf Insurance and Reinsurance 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 30 June 2026) rose 26.592% YoY to SAR 2,565.76 million (from SAR 2,026.78 million), primarily driven by growth in the medical and motor lines of business contributing SAR 253,957K and SAR 285,201K respectively, alongside a 40.97% increase in gross written premiums to SAR 3,910,864K. Net profit after zakat attributable to shareholders surged 342.624% YoY to SAR 80.42 million (from SAR 18.17 million), mainly due to a 183.773% increase in net investment results to SAR 44.84 million (from SAR 15.80 million), driven by higher commission and dividend income and improved fair value performance of investments, as well as a significant improvement in the net insurance service result to SAR 72.18 million (from SAR 32.25 million), attributable to stronger underwriting performance in the medical and motor lines. Additionally, net insurance financing expenses decreased 41.315% YoY to SAR 13.40 million (from SAR 22.84 million), further supporting the bottom-line improvement.

Quarter-on-Quarter Performance Drivers

QoQ, insurance revenues rose 5.06% to SAR 1,314.51 million (from SAR 1,251.25 million in the previous quarter), driven by growth in the medical line of business. Net profit attributable to shareholders increased 21.843% QoQ to SAR 44.17 million (from SAR 36.25 million), primarily due to a significant improvement in the net insurance service result, which surged 46.17% to SAR 42.86 million (from SAR 29.32 million), reflecting stronger underwriting performance in the medical and property & casualty lines of business. Net investment results were relatively stable QoQ, declining marginally by 3.991% to SAR 21.96 million, while net insurance financing expenses increased 68.328% to SAR -8.41 million, partially offsetting the gains.

Other Items

The external auditor issued an unmodified conclusion on the interim condensed financial information for the six-month period ended 30 June 2026. It is noted that the financial statements for the year ended 31 December 2025 and the interim condensed financial information for the periods ended 30 June 2025 were audited and reviewed by other joint auditors, who expressed an unmodified opinion and unmodified review conclusion on 1 April 2026 and 11 August 2025, respectively. Total shareholders' equity as at the end of the current period stood at SAR 1,656,170K, compared to SAR 1,049,321K as at the same date of the previous year, an increase of 57.83%. Earnings per share for the current period were SAR 0.58, compared to SAR 0.17 for the same period of the previous year. Following approval by the Extraordinary General Assembly held on 29 June 2026, the Company set off its accumulated losses against the share premium account, applied to accumulated losses as at 31 March 2026 amounting to SAR 77,823K; accordingly, the share premium balance was reduced from SAR 224,974K to SAR 147,151K and the accumulated losses balance was reduced to nil, with the retained earnings balance standing at SAR 44,167K as at 30 June 2026 representing profit generated after that date. The Company noted that this set-off did not affect total equity, total assets, or total liabilities, as it represents a reclassification within equity components. Additionally, deposits held against letters of guarantee, previously classified within cash and cash equivalents, have been reclassified to prepayments and other assets; this reclassification had no effect on previously reported net profit.

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