On 2026-08-05 09:24:18 (Saudi Time), Saudi Enaya 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 declined 30.32% YoY to SAR 73.10 million (from SAR 104.90 million), primarily driven by a significant increase in unearned premiums of SAR 121,065(currency not specified in original) thousand, which deferred a substantial portion of Gross Written Premiums to future reporting periods, partially offset by a SAR 87,556(currency not specified in original) thousand increase in GWP. Net profit attributable to shareholders swung to a loss of SAR 25.01 million from a profit of SAR 0.68 million in the prior period, mainly due to the sharp decline in insurance revenues and the resulting deterioration in insurance service results, partially mitigated by a 32.15% reduction in other operating expenses to SAR 6,140(currency not specified in original) thousand. The company also faces going concern uncertainty, with accumulated losses of SAR 100.29 million representing 43.61% of share capital, and is pursuing a capital restoration plan involving a capital reduction and proposed rights issue subject to regulatory approvals.

Quarter-on-Quarter Performance Drivers

QoQ insurance revenue rose 29.95% to SAR 41.31 million (converted from SAR 41,310K) from SAR 31.79 million in the previous quarter, driven by business growth. However, net loss attributable to shareholders deepened sharply to SAR 25.05 million from a profit of SAR 0.037 million in the prior quarter, a deterioration of SAR 25.083 million, primarily due to a 108% surge in insurance service expenses to SAR 64.202 million (from SAR 30.80 million), driven by higher incurred claims and related insurance service expenses resulting from increased business activity. GWP also grew 58.90% QoQ to SAR 87.62 million, reflecting continued business expansion, but this was insufficient to offset the sharp rise in claims costs.

Other Items

The external auditors issued an unmodified conclusion on the interim condensed financial statements for the six months ended 30 June 2026. However, the auditors drew attention to Note 4, highlighting a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern, noting that "as at 30 June 2026, the Company had accumulated losses of SAR 100.29 million, representing 43.61% of its share capital, and continued to face regulatory capital and solvency challenges." Following the non-approval of a proposed merger by shareholders, the Company obtained a six-month extension from the Insurance Authority and initiated a capital restoration plan involving a capital reduction and a proposed rights issue, subject to relevant regulatory approvals, with the auditors noting that "the successful implementation of these measures and achievement of the forecast operational improvements remain uncertain." Total shareholders' equity stood at SAR 129,707 thousand as at 30 June 2026, compared to SAR 162,097 thousand as at the end of the same quarter of the previous year, a decrease of 19.98%. Loss per share for the current six-month period was SAR -1.09, compared to SAR 0.03 in the prior year period. For the current quarter, Gross Written Premiums amounted to SAR 87,620 thousand, an increase of 280.34% compared to SAR 23,037 thousand in the same quarter of the previous year, which the Company attributed to business growth, while insurance service expenses increased 43.31% to SAR 64,202 thousand from SAR 44,798 thousand in the same quarter of the prior year, primarily due to higher incurred claims.

Original announcement:

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