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

Gulf Union Alahlia reported a net profit of SAR 1.68 million for the first half of 2026, marking a significant recovery from a net loss of SAR 67.83 million in the same period last year. Despite the half-year profit, the company recorded a net loss of SAR 2.51 million for the second quarter, primarily due to an 88.8% sequential decline in investment income and higher reinsurance contract expenses compared to Q1 2026.
Six-month insurance revenues decreased by 8.6% year-over-year to SAR 464.7 million, following a 21.7% contraction in gross written premiums. The decline was broad-based across all major segments, with motor insurance premiums dropping 30%, health premiums falling 15.7%, and P&C premiums decreasing by 20% compared to H1 2025.
The transition to a half-year profit was driven by aggressive cost management, including an 18% reduction in insurance service expenses (SAR 96.7 million in savings) and a 43.5% drop in net reinsurance contract costs. These operational improvements shifted the insurance service result from a SAR 68.9 million deficit in H1 2025 to a SAR 2.4 million surplus in H1 2026.
The company’s balance sheet shows total shareholders' equity of SAR 570.6

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	223,300	260,210	-14.184	241,433	-7.51
Result of Insurance Services	16,266	-3,167	-	9,646	68.629
Net Profit (Loss) of The Insurance Results	3,147	-28,167	-	-752	-
Net Profit (Loss) of The Investment Results	1,315	9,591	-86.289	11,711	-88.771
Net Insurance Financing Expenses	885	540	63.888	-1,272	-
Net Profit (Loss), After Zakat, Attributable To Shareholders	-2,514	-27,881	-90.983	4,196	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-2,514	-27,881	-90.983	4,196	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	464,733	508,221	-8.556
Result of Insurance Services	25,912	-27,258	-
Net Profit (Loss) of The Insurance Results	2,395	-68,897	-
Net Profit (Loss) of The Investment Results	13,026	18,756	-30.55
Net Insurance Financing Expenses	-386	1,139	-
Net Profit (Loss), After Zakat, Attributable To Shareholders	1,682	-67,829	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	1,682	-62,750	-
Total Shareholders Equity (after Deducting Minority Equity)	570,625	563,950	1.183
Profit (Loss) per Share	0.04	-1.48
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	-45,179	-9
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 reason for the decrease in insurance revenues in the current quarter amounting to SAR 223.3M compared to SAR 260.2M in the same quarter previous year, a decrease of SAR 36.9M or 14%, is due to the decrease in gross written premium during the current quarter, which amounted to SAR 253.2M compared to SAR 321.6M in the same quarter previous year, decrease by SAR 68.4M or 21% as a result of the decreased in the company's main sectors (Health insurance premium amounted to SAR 143.2M for the current quarter compared to SAR 164M in the same quarter previous year, decrease by SAR 20.8M or 12.7%, Motor insurance premium amounted to SAR 74.9M for the current quarter compared to SAR 91.4M in the same quarter previous year, decreased by SAR 16.5M or 18%, and decreased in P&C insurance premium for the current quarter amounted to SAR 35.1M compared to SAR 66.2M in the same quarter previous year, increased by SAR 31.1M or 47%).
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 losses after zakat for the current quarter, amounting to SAR 2.514M, compared to losses after zakat of SAR 27.881M in the same quarter of the previous year, is due to surplus from insurance services amounting to SAR 3.1M compared to a deficit of SAR 28.2M in insurance services in the same quarter previous year. This is primarily as a result of the decrease in insurance service expenses in current quarter amounting to SAR 207M, compared to SAR 263.4M in the same quarter previous year—decrease of SAR 56.4M or 21%. Further, expenses from reinsurance contracts in current quarter is SAR 13.1M compared to SAR 25M in the same quarter of the previous year, decrease of SAR 11.9M or 47.5%. Also, decrease in the other operation expense for the current quarter of SAR 5.5M compared to SAR 8.9M for the same quarter of the previous year, decrease of SAR 3.4M or 38%.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	The insurance revenue for the current quarter amounted to SAR 223.3M compared to SAR 241.4M in the previous quarter, decrease of 18% due to increase in change in unearned premium amounting SAR 449.4M for current quarter compared to SAR 411.2M in the previous quarter, increase of SAR 38.2M or 9.3%, as a result of increase in gross written premium for the current quarter amounted to SAR 253.2M compared to SAR 196.3M in the previous quarter, increase of SAR 56.9M or 29%).
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	The reason for losses in the current quarter after zakat, amounting to SAR 2.514M, compared to a profit of SAR 4.196M in the previous quarter, is due to increase in reinsurance contract expenses to SAR 13.1M for current quarter compared to SAR 10.4M in the previous quarter decrease of SAR 2.7M or 26% , and investment income decreased in the current quarter amounting to SAR 1.3M compared to SAR 11.7M in the previous quarter, decrease of SAR 10.4M or 88.8%, additionally increase in other operation expense amounting to 5.5M for the current quarter compare to 3.9M for the previous quarter increase of 1.6M or 39.8%.
The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is	The reason for the decrease in insurance revenues for the current period amounting to SAR 464.7M compared to SAR 508.2M for the same period of the previous year, a decrease of SAR 43.5M or 8.6%, is due to the decrease in gross written premium during the current period, which amounted to SAR 449.57M compared to SAR 574.3M for the same period of the previous year, a decrease of SAR 124.8M or 21.7%. This was as a result of the decrease in the company's main sectors (Health insurance premium amounted to SAR 213.7M for the current period compared to SAR 253.6M for the same period of the previous year, a decrease of SAR 39.9M or 15.7%, while Motor insurance premium amounted to SAR 144.5M for the current period compared to SAR 206.3M for the same period of the previous year, a decrease of SAR 61.8M or 30%, and P&C insurance premium for the current period amounted to SAR 91.3M compared to SAR 114.3M for the same period of the previous year, a decrease of SAR 23M or 20%).
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 reason for the profit in the current period compared to the losses in the same period of the previous year is due to the surplus in insurance services results, which amounted to SAR 2.4M for the current period compared to the deficit of SAR 68.9M for the same period of the previous year, as a result of the decrease in insurance services expenses for the current period amounting to SAR 438.8M compared to SAR 535.5M for the same previous year, a decrease of SAR 96.7M or 18%. Also decrease in net expense from reinsurance contract for the current period amounted to SAR 23.5M compared to SAR 41.6M for the same period previous year, decrease by SAR 18.1M or 43.5%. Additionally, other operating opration expenses decreased in the current period amounting to SAR 9.4M compared to SAR 15.8M in the same period previous year, representing a decrease of SAR 6.4M or 40%.
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)	None
Reclassification of Comparison Items	None
Additional Information	Total equity at end of the current period is SAR 570.625M, and for the same period previous year was SAR 563.950M, an increase of 1.18%. Net profit before zakat for the current period amounted to SAR 5.478M, compared to the net losses before zakat amounting to SAR 62.429M for the same period previous year. Earnings per share was calculated based on net profit after zakat amounting to SAR 1.683M for current period compared to net losses of SAR 67.829M for the same period previous year divided by the number of the company's shares amounting to 45.895M shares. Accumulated losses at the end of the period amounted to SAR 45.179M.