On 2026-07-29 08:02:42 (Saudi Time), Walaa 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 current period (six months ending 30 June 2026) declined 11.26% YoY to SAR 1,308.96 million (from SAR 1,475.03 million), primarily driven by significant decreases in Motor, P&S Non-linked, P&C other, and Property segments by 46.38%, 61.41%, 27.23%, and 16.38% respectively, partially offset by growth in Energy and Engineering segments. Despite the revenue decline, the company swung to a net profit after zakat attributable to shareholders of SAR 43.17 million from a net loss of SAR 117.30 million in the same period last year, driven by a turnaround in insurance service results — from a loss of SAR 100.51 million to a profit of SAR 14.41 million — largely due to reduced losses in Medical and Motor segments. Additionally, net investment income surged 291.59% YoY to SAR 63.01 million (from SAR 16.09 million), fueled by significant realized gains on equities compared to realized losses in the prior period, along with a 72.90% reduction in unrealized equity losses. These gains were partially offset by a 24.57% increase in other operating expenses to SAR 26.16 million, mainly attributable to SAR 2.2 million in amortization of Customer Relation Intangible assets recognized following the acquisition of subsidiary Aspire.

Quarter-on-Quarter Performance Drivers

QoQ insurance revenues rose 6.73% to SAR 675.78 million, driven by growth in Medical, Property, Energy, and P&C other segments, partially offset by declines in Motor, Engineering, and P&S Non-linked. Net profit after zakat attributable to shareholders surged 66.79% QoQ to SAR 26.99 million (vs. SAR 16.18 million in the prior quarter), primarily driven by a significant improvement in insurance service result to a profit of SAR 11.90 million from SAR 2.51 million, supported by Motor and P&S Non-linked segments turning profitable and gains in Property and P&C other. This was further aided by a 45.05% reduction in net insurance finance expenses to SAR 2.14 million and higher other operating income of SAR 5.02 million, though partially offset by increased other operating expenses of SAR 14.34 million, largely due to SAR 2.2 million amortization on Customer Relation Intangible assets from the subsidiary acquisition.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or reservations noted. Accumulated losses stood at SAR 14,856 thousand, representing 1.16% of capital. Total shareholders' equity excluding minority interest at the end of the current period was SAR 1,712,900 thousand, compared to SAR 1,711,730 thousand at the end of the comparative period, an increase of 0.07%. Earnings per share for the current period was SAR 0.34, versus a loss per share of SAR 0.92 for the comparative period, calculated based on a weighted average of 127,558 thousand ordinary shares outstanding. Gross Written Premiums for the current period amounted to SAR 1,317,193 thousand, compared to SAR 966,000 thousand for the same period of last year, representing an increase of 36.36%. During the current quarter, the Group completed its purchase price allocation assessment of provisional goodwill of SAR 52.3 million initially recorded in Q2 2025 following the acquisition of subsidiary Aspire, resulting in a reallocation of SAR 25.2 million to identifiable intangible assets, with SAR 2.2 million in amortization recorded retrospectively from the date of acquisition. Certain comparative figures have been reclassified or restated to conform to the current period's presentation methodology, including reclassification of EOSB remeasurement within equity and retrospective reallocation of provisional goodwill to intangibles under IFRS 3; these reclassifications had no impact on net loss attributable to shareholders or accumulated losses for comparative periods.

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