On 2026-05-11 08:14:30 (Saudi Time), United Cooperative Assurance Co. announced its Interim financial results for the three months ended on March 31, 2026.

Year-on-Year Performance Drivers

Insurance revenues declined 54.06% YoY to SAR 100.69 million, primarily due to a decline in business volume. Net loss improved significantly to SAR 6.87 million compared to SAR 23.32 million in the same quarter last year, mainly attributable to decreased losses in net insurance and investment results despite lower overall revenues.

Quarter-on-Quarter Performance Drivers

QoQ insurance revenues declined 54.02% to SAR 100.69 million from SAR 218.97 million, primarily due to changes in the business mix. Net loss significantly improved by 91.85% to SAR 6.87 million from SAR 84.19 million in the previous quarter, mainly attributable to decreased losses in net insurance service results during the current quarter.

Other Items

The external auditors issued a qualified opinion with two significant concerns. First, they disagreed with management's goodwill impairment assessment of SAR 78.4 million as of March 31, 2026, stating that "the impairment assessment, in particular the determination of the recoverable amount, was based on market capitalisation without sufficient adjustments or reconciliation and is therefore not consistent with the requirements of IAS 36 Impairment of Assets and IFRS 13 Fair Value Measurement" and concluded that "the carrying amount of goodwill may be materially overstated." Second, material uncertainty exists regarding the company's ability to continue as a going concern due to accumulated losses of SAR 458.7 million (115% of capital) as of March 31, 2026, net operating cash outflows of SAR 17.34 million for the three-month period, and other conditions that "may cast significant doubt on the Company's ability to continue as a going concern." Total shareholders' equity decreased dramatically by 92.84% to SAR 17.714 million from SAR 247.502 million in the prior year period. The company stated it will continue applying procedures for listed companies whose accumulated losses exceed 50% of capital and has appointed a Taqeem-certified external valuation specialist to perform an independent goodwill impairment assessment, though this represents a difference in professional judgment with the auditors.

Original announcement:

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