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

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	88,288	211,278	-58.212	100,685	-12.312
Result of Insurance Services	28,178	-34,553	-	10,818	160.473
Net Profit (Loss) of The Insurance Results	9,677	-77,730	-	-1,313	-
Net Profit (Loss) of The Investment Results	-3,456	2,773	-	1,184	-
Net Insurance Financing Expenses	-604	-416	45.192	-1,220	-50.491
Net Profit (Loss), After Zakat, Attributable To Shareholders	-872	-81,541	-98.93	-6,865	-87.297
Total Comprehensive Income Attributable to Shareholders of the Issuer	-872	-81,541	-98.93	-6,865	-87.297
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	188,973	430,431	-56.096
Result of Insurance Services	38,996	-6,706	-
Net Profit (Loss) of The Insurance Results	8,364	-100,215	-
Net Profit (Loss) of The Investment Results	-2,272	6,713	-
Net Insurance Financing Expenses	-1,824	-1,599	14.071
Net Profit (Loss), After Zakat, Attributable To Shareholders	-7,737	-104,861	-92.621
Total Comprehensive Income Attributable to Shareholders of the Issuer	-7,737	-102,353	-92.44
Total Shareholders Equity (after Deducting Minority Equity)	16,842	165,961	-89.851
Profit (Loss) per Share	-0.19	-2.62
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	-459,574	-115
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	Insurance revenues for the current quarter amounted to SAR 88,288 thousand, compared to SAR 211,278 thousand for the same quarter of last year. This represents a decrease of 58% which is principally due to decline in business.
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 net loss after Zakat for the current quarter amounted to SAR 872 thousand, compared to a net loss after Zakat of SAR 81,541 thousand for the same quarter of last year, representing a decrease of the loss by 99%. This was mainly attributable to a decrease in insurance service expenses. However, the total Gross written premiums during the current quarter amounted to SAR 3,862 thousand compared to SAR 263,552 of the same quarter of last year, representing a decrease of 99%.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	Insurance revenues for the current quarter amounted to SAR 88,288 thousand, compared to SAR 100,685 thousand in the previous quarter. This represents a decrease of 12% which was mainly due to decrease in earned premium.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	The net loss after Zakat for the current quarter amounted to SAR 872 thousand, compared to a net loss after Zakat of SAR 6,865 thousand in the previous quarter, representing a decrease of the loss by 87%. This was mainly attributable to a decrease in insurance service expenses.
The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is	Insurance revenues for the current period amounted to SAR 188,973 thousand, compared to SAR 430,431 thousand for the same period of last year. This represents a decrease of 56%, which was principally due to decline in business.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Net loss after Zakat for the current period amounted to SAR 7,737 thousand, compared to a net loss after Zakat of SAR 104,861 thousand for the same period of last year, representing a decrease of the loss by 92%. This was mainly attributable to a decrease in insurance service expenses. However, the total Gross written premiums during the current period amounted to SAR 201,308 thousand compared to SAR 494,329 thousand of the same period of last year, representing a decrease of 59%.
Statement of the type of external auditor's report	Conservation
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)	The external auditors draw attention to note 8 of the interim condensed financial statements and included the following in their review report: "the Company carries goodwill amounting to SAR 78.4 million as at 30 June 2026. As of 31 December 2025, Management performed an impairment assessment, with the support of an independent expert, and concluded that no impairment of goodwill is required. In our view, 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. In addition, limited consideration has been given to value in use based on future cash flows. Consequently, we are unable to agree with management’s conclusion that the carrying amount of goodwill is fully recoverable. Accordingly, the carrying amount of goodwill may be materially overstated as of 30 June 2026. The impact of this matter on the interim condensed financial statements has not been determined." The external auditors report contains the following reservations: 1. They draw attention to to note 1(e) of the interim condensed financial statements which indicates the following: the Company incurred a net loss of SAR 7.73 million and net operating cash outflows of SAR 14.39 million for the six-month period ended 30 June 2026. In addition, as of 30 June 2026, the Company had accumulated losses of SAR 459.58 million, which exceeded its share capital. These events and conditions, together with other matters described in note 1(e) to the accompanying interim-condensed financial statements, 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 further modified in respect of this matter. 2. They draw attention to note 18 of the financial statements which describes that the Company has not complied with the applicable requirements of maintaining the solvency ratio as per Article 66 of the Implementing Regulations of the Cooperative Insurance Companies Control Law. 3. They included an other matter paragraph stating the following: the interim condensed financial statements of the Company for the three-month and six-month periods ended 30 June 2025, were jointly reviewed by another auditors, who expressed an unmodified conclusion on those interim condensed financial statements on 17 Safar 1447H corresponding to 11 August 2025. In addition, the financial statements of the Company for the year ended 31 December 2025 were jointly audited by another auditors, who expressed an modified opinion on 16 Dhul Qaedah 1447H corresponding to 03 May 2026.
Reclassification of Comparison Items	None
Additional Information	The loss per share for the current quarter is SAR (0.02) versus SAR (2.04) for the same quarter of last year, and loss per share for the current period is SAR (0.19) versus SAR (2.62) for the same period of last year — calculated by dividing the net loss attributable to the shareholders after Zakat over the weighted average number of ordinary outstanding shares of 40,000 thousand shares. Total comprehensive loss for the current quarter is SAR 872 thousand, compared to total comprehensive loss of SAR 81,541 thousand in the same quarter of last year. Total comprehensive loss for the current period is SAR 7,737 thousand, compared to total comprehensive loss of SAR 102,353 thousand for the same period of last year. Total equity as of the end of the current quarter is SAR 16,842 thousand, a decrease of 90% from SAR 165,961 thousand at the end of the same quarter of last year, and a decrease of 5% from SAR 17,714 thousand at the end of the previous quarter. Referring to the fact that the Company's accumulated losses have reached 115% of its capital as at 30 June 2026, the Company will continue to apply the procedures and instructions applicable to listed companies whose accumulated losses exceed 50% of their capital. In reference to the qualified conclusion included in the auditor’s review report concerning the impairment assessment of the Company’s goodwill as at 31 December 2025, the Company wishes to clarify the following: 1. In accordance with the requirements of International Accounting Standard 36 “Impairment of Assets” and IFRS 13 "Fair Value Measurement", the company has proactively taken ‎measures in this regard by appointing a Taqeem‑certified external valuation specialist company licensed by the Saudi Authority for Accredited Valuers, to perform an independent impairment assessment of goodwill. 2. Based on the impairment assessment performed by the valuation specialist company, it was concluded that the recoverable amount of goodwill exceeded its carrying amount as at 31 December 2025 and, on this basis, the management concluded that no impairment of goodwill was required to be recognised in the financial statements. 3. As disclosed in the auditor’s review report, the qualified conclusion arises from a difference in professional judgment of the management and its independent expert, with the auditors, regarding the application of the impairment assessment methodology.