On 2026-08-05 08:14:28 (Saudi Time), Salama 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 six-month period ending June 30, 2026, increased by 22.44% YoY to SAR 333.80 million (SAR 333.80 million converted: 333,800 / 1,000 = SAR 333.80 million) from SAR 272.61 million in the same period of the previous year, driven by growth in gross written premiums (GWP), which rose 46.18% to SAR 384.89 million from SAR 263.29 million, particularly in the motor and health insurance segments. Despite higher revenues, the net loss after zakat attributable to shareholders narrowed significantly by 48.02% YoY to SAR 20.34 million from SAR 39.13 million, as the net loss of insurance results improved to SAR 21.02 million from SAR 38.06 million, reflecting better insurance services results from growth in core insurance segments. However, the improvement was partially offset by higher insurance service expenses, including increased net incurred claims, technical provisions, and underwriting expenses linked to the expanded policy underwriting activity. Investment results remained relatively stable, contributing SAR 13.21 million compared to SAR 13.95 million in the prior period, while net insurance financing expenses declined 44.00% to SAR 1.13 million from SAR 2.02 million.

Quarter-on-Quarter Performance Drivers

QoQ, insurance revenues rose 6.84% to SAR 172.42 million (vs. SAR 161.38 million in the prior quarter), driven by higher gross written premiums (GWP) of SAR 222.95 million vs. SAR 161.93 million (+37.68%), particularly in motor and health insurance segments. However, net loss after zakat attributable to shareholders deepened sharply to SAR (17.02) million from SAR (3.32) million in the prior quarter (+411.97%), primarily due to a significant increase in net loss of insurance results to SAR (17.92) million from SAR (3.09) million (+479.25%), driven by higher net incurred claims, technical provisions, and underwriting expenses associated with the surge in gross written premiums.

Other Items

Salama Cooperative Insurance Co. received an unmodified conclusion from its external auditor for the interim period ending June 30, 2026, with no additional comments or reservations noted. The company disclosed that accumulated losses as of June 30, 2026, amounted to SAR 121.56 million, representing 40.52% of share capital, up from SAR 101.22 million (33.74% of share capital) as of December 31, 2025. As a result, the company noted that "the procedures and instructions of the Capital Market Authority (CMA) pertaining to companies listed on the market whose accumulated losses have reached 35% or more of their share capital will be applied." Total shareholders' equity (excluding minority interest) declined 20.35% to SAR 249.24 million from SAR 312.92 million at the end of the same period of the previous year, while total equity stood at SAR 249.55 million compared to SAR 313.65 million, a decrease of 20.44%. Loss per share for the current period was SAR (0.68) compared to SAR (1.30) for the same period of the previous year, and loss per share for the current quarter was SAR (0.57) compared to SAR (0.12) for the same quarter of the previous year. Certain comparative amounts in the statement of cash flow and explanatory notes have been reclassified to conform to the current period's presentation, and the presentation of details relating to the Motor line of business has also been updated.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.