The Mediterranean and Gulf Insurance and Reinsurance Co. announces its Interim Financial Results for the period ending on 2026-06-30 ( Six Months )

MedGulf reported a net profit after zakat of SAR 80.42 million for the six-month period ending June 30, 2026, a 342.6% increase compared to SAR 18.17 million in the prior-year period. For the second quarter, the company swung to a profit of SAR 44.17 million from a net loss of SAR 1.47 million in Q2 2025.
Total insurance revenue grew 26.6% year-on-year to SAR 2.57 billion for the first half of the year, driven by expansion in the medical and motor business segments which increased by SAR 254 million and SAR 285 million respectively.
Net investment results for the half-year period surged 183.8% to SAR 44.84 million, bolstered by higher dividend income, increased commissions on profit-bearing instruments, and improved fair value performance on investments.
The company eliminated its accumulated losses of SAR 77.82 million as of March 31, 2026, by setting them off against the share premium account following Extraordinary General Assembly approval in June 2026, while total shareholders' equity reached SAR 1.66 billion.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	1,314,513	1,026,441	28.065	1,251,248	5.056
Result of Insurance Services	85,239	66,941	27.334	10,609	703.459
Net Profit (Loss) of The Insurance Results	42,858	22,172	93.297	29,320	46.173
Net Profit (Loss) of The Investment Results	21,963	3,394	547.112	22,876	-3.991
Net Insurance Financing Expenses	-8,408	-24,857	-66.174	-4,995	68.328
Net Profit (Loss), After Zakat, Attributable To Shareholders	44,167	-1,470	-	36,249	21.843
Total Comprehensive Income Attributable to Shareholders of the Issuer	44,167	-1,470	-	36,249	21.843
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	2,565,761	2,026,784	26.592
Result of Insurance Services	95,848	150,229	-36.198
Net Profit (Loss) of The Insurance Results	72,178	32,248	123.821
Net Profit (Loss) of The Investment Results	44,839	15,801	183.773
Net Insurance Financing Expenses	-13,403	-22,839	-41.315
Net Profit (Loss), After Zakat, Attributable To Shareholders	80,416	18,168	342.624
Total Comprehensive Income Attributable to Shareholders of the Issuer	80,416	20,677	288.915
Total Shareholders Equity (after Deducting Minority Equity)	1,656,170	1,049,321	57.832
Profit (Loss) per Share	0.58	0.17
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	-	-
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 revenue for the current quarter amounted to SAR 1,314,513K, compared to SAR 1,026,441K for the same quarter of the previous year, an increase of 28.07%, driven by revenue growth in the medical and motor lines of business of SAR 159,349K and SAR 125,241K respectively. Gross written premiums for the current quarter amounted to SAR 1,300,654K, compared to SAR 429,765K for the same quarter of the previous year, an increase of 202.64%.
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 Company recorded a net profit after zakat attributable to shareholders of SAR 44,167K for the current quarter, compared to a net loss of SAR 1,470K for the same quarter of the previous year. The improvement was mainly driven by the following: - Net investment results for the current quarter amounted to SAR 21,963K, compared to SAR 3,394K for the same quarter of the previous year, an increase of 547.11%, mainly attributable to higher dividend income and higher commission income on profit-bearing instruments. - An improvement in the net insurance service result to SAR 42,858K for the current quarter, compared to SAR 22,172K for the same quarter of the previous year, mainly due to the improved performance of the motor line of business and the positive performance of the property and casualty lines.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	Insurance revenue for the current quarter amounted to SAR 1,314,513K, compared to SAR 1,251,248K for the previous quarter, an increase of 5.06%, driven by growth in the medical line of business. Gross written premiums for the current quarter amounted to SAR 1,300,654K, compared to SAR 2,610,210K for the previous quarter, a decrease of 50.17%.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	The Company recorded a net profit after zakat attributable to shareholders of SAR 44,167K for the current quarter, compared to SAR 36,249K for the previous quarter. The improvement was mainly driven by the increase in the net insurance service result to SAR 42,858K for the current quarter, compared to SAR 29,320K for the previous quarter, an increase of 46.17%, mainly reflecting improved underwriting performance in the medical and property and casualty lines of business.
The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is	Insurance revenue for the current period amounted to SAR 2,565,761K, compared to SAR 2,026,784K for the same period of the previous year, an increase of 26.59%, mainly driven by growth in the medical and motor lines of business of SAR 253,957K and SAR 285,201K respectively. Gross written premiums for the current period amounted to SAR 3,910,864K, compared to SAR 2,774,187K for the same period of the previous year, an increase of 40.97%.
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 Company recorded a net profit after zakat attributable to shareholders of SAR 80,416K for the current period, compared to SAR 18,168K for the same period of the previous year, an increase of 342.62%, mainly due to the following: - Net investment results for the current period amounted to SAR 44,839K, compared to SAR 15,801K for the same period of the previous year, an increase of 183.77%, mainly due to higher commission and dividend income and the improved fair value performance of investments measured at fair value through profit or loss. - An improvement in the net insurance service result to SAR 72,178K for the current period, compared to SAR 32,248K for the same period of the previous year, mainly attributable to the medical and motor lines of business.
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)	The financial statements for the year ended 31 December 2025 and the interim condensed financial information for the three-month and six-month periods ended 30 June 2025 were audited and reviewed, respectively, by other joint auditors who expressed an unmodified opinion on those financial statements and unmodified review conclusion on the interim condensed financial information on 1 April 2026 (corresponding to 13 Shawwal 1447H) and 11 August 2025 (corresponding to 17 Safar 1447H), respectively.
Reclassification of Comparison Items	Deposits held against letters of guarantee, previously classified within cash and cash equivalents, have been reclassified to prepayments and other assets to conform with the current period's presentation. This reclassification had no effect on previously reported net profit. The comparative amounts in the statement of cash flows have been reclassified accordingly.
Additional Information	Earnings per share for the current period is SAR 0.58, compared to SAR 0.17 for the same period of the previous year. Total shareholders' equity as at the end of the current quarter amounted to SAR 1,656,170K, compared to SAR 1,049,321K as at the same date of the previous year, an increase of 57.83%. Following the approval of the Extraordinary General Assembly held on 29 June 2026, the Company set off its accumulated losses against the share premium account. The set-off was applied to the accumulated losses as at 31 March 2026, being the most recent period reviewed by the external auditor, amounting to SAR 77,823K. Accordingly, the share premium balance was reduced from SAR 224,974K to SAR 147,151K and the accumulated losses balance was reduced to nil. All movements in the results of the current year from 31 March 2026 onwards are reflected in the interim condensed financial information for the period ended 30 June 2026. Accordingly, the retained earnings balance of SAR 44,167K as at 30 June 2026 represents the profit generated by the Company after that date. The set-off did not affect the total equity, total assets or total liabilities of the Company, as it represents a reclassification within the components of equity.