Al-Etihad Cooperative Insurance Co. announces its Interim Financial Results for the period ending on 2026-06-30 ( Six Months )

Al-Etihad Cooperative Insurance reported a net loss after Zakat of SAR 92.2 million for the six-month period ending June 30, 2026, a 21.9% increase in losses compared to SAR 75.6 million in the same period last year.
Insurance revenue for the half-year remained nearly flat at SAR 603.2 million, though quarterly revenue fell 4.9% YoY primarily due to a decline in gross earned premiums within the health insurance segment.
Accumulated losses reached SAR 212.9 million, representing 42.6% of the company's SAR 500 million capital, as the solvency margin fell below the minimum requirements mandated by the Insurance Authority.
External auditors included a "material uncertainty" paragraph regarding the company's ability to continue as a going concern, citing the significant net loss and a net cash outflow from operating activities totaling SAR 92.8 million for the period.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	301,725	317,227	-4.886	301,439	0.094
Result of Insurance Services	-26,245	-48,157	-45.501	-24,568	6.825
Net Profit (Loss) of The Insurance Results	-56,530	-65,127	-13.2	-44,142	28.063
Net Profit (Loss) of The Investment Results	5,941	4,135	43.675	9,427	-36.978
Net Insurance Financing Expenses	459	541	-15.157	791	-41.972
Net Profit (Loss), After Zakat, Attributable To Shareholders	-52,629	-63,694	-17.372	-39,565	33.019
Total Comprehensive Income Attributable to Shareholders of the Issuer	-52,629	-63,694	-17.372	-39,565	33.019
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	603,164	605,544	-0.393
Result of Insurance Services	-50,813	-47,271	7.492
Net Profit (Loss) of The Insurance Results	-100,672	-88,530	13.715
Net Profit (Loss) of The Investment Results	15,368	20,802	-26.122
Net Insurance Financing Expenses	1,250	-375	-
Net Profit (Loss), After Zakat, Attributable To Shareholders	-92,194	-75,612	21.93
Total Comprehensive Income Attributable to Shareholders of the Issuer	-92,194	-73,104	26.113
Total Shareholders Equity (after Deducting Minority Equity)	357,391	608,553	-41.272
Profit (Loss) per Share	-1.84	-1.51
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-212,904	-42.6
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the revenues during the current quarter compared to the same quarter of last year is	The decrease of 5% in insurance revenue during the current quarter, compared to the similar quarter of the last year, is primarily attributable to the decrease in gross earned premiums for health insurance segment. This decrease was partially offset by a smaller increase in gross earned premiums for the motor insurance segment and a smaller positive change in the provision for expected credit losses.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net losses after zakat during the current quarter compared to the same quarter of the previous year is mainly due to the decrease in insurance service expenses and the increase in company's share of surplus from insurance pool. These impacts were partially offset by the decrease in Insurance revenue and the decrease in reinsurance recoverable for incurred claims.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	No significant change
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	The increase in net losses after zakat in the current quarter compared to the previous one is mainly due to the decrease in reinsurance recoverable for incurred claims and the decrease in investment results. These impacts were partially offset by an increase in the company's share of Industry pools profits.
The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is	No significant change
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The increase in net losses after zakat in the current period compared to the similar period of last year is mainly due to the decrease in reinsurance recoverables for incurred claims and the decrease in investment results.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	We draw attention to note 2(c) to the accompanying interim condensed financial statements which states that the Company has incurred a net loss attributable to the shareholders of ⃁ 92.2 million during the six-month period ended June 30, 2026 (six-month period ended June 30, 2025: ⃁ 75.6 million). The Company’s net cash used in operating activities for the period then ended amounted to ⃁ 92.8 million (2025: ⃁ 124.8 million). Further, as at June 30, 2026, the Company had accumulated loss of ⃁ 212.9 million (as at December 31, 2025: ⃁ 162.1 million) and the Company’s solvency margin has declined below the minimum solvency requirements as mandated by the Insurance Authority. These events and conditions, together with other matters set out therein, indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison Items	NA
Additional Information	Earnings (Losses) per share was calculated based on net losses after zakat amounted to SAR (92,194) for current period compared to SAR (75,612K) for similar period of last year divided by the number of issued shares of 50 million shares. Gross Written Premiums (GWP) for the current period is amounted to SAR 571,089K compared SAR 607,928K for similar period of last year. Accumulated losses as at the end of the second quarter of 2026 amounted to SAR 212,904 thousand, representing 42.6% of the Company’s paid-up capital of SAR 500,000 thousand, as per the financial statements for the six-months period ended 30 June 2026. The increase in accumulated losses is primarily attributable to losses recognized in net insurance results. The Company is still implementing a comprehensive corrective plan to address its financial position and improve its operating results. The key initiatives include reviewing and enhancing pricing efficiency, strengthening governance, particularly in relation to pricing practices, optimizing operating costs, improvement in controls over claims management processes and diversifying the insurance portfolio. Considering that accumulated losses have exceeded 35% of paid-up capital, the procedures and instructions for companies listed on the stock market that have accumulated losses of 20% or more of their capital will be implemented.