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

Malath reported a 70.2% year-on-year decrease in net profit after Zakat for the second quarter of 2026, falling to SR 1.99 million from SR 6.68 million. For the six-month period ending June 30, 2026, net profit declined 54.9% to SR 7.47 million, resulting in earnings per share of SR 0.15 compared to SR 0.33 in the prior-year period.
Insurance revenues for the quarter dropped 29.8% to SR 257.0 million, primarily driven by a significant decline in business within the motor segment and an overall reduction in the insurance portfolio size. This trend was reflected in the half-year results, where insurance revenues fell 21.5% to SR 554.5 million compared to SR 706.1 million in H1 2025.
The decline in profitability was fueled by the revenue contraction and a 79.7% drop in other income, though these factors were partially offset by a 130.8% surge in net investment income to SR 9.05 million and a 28.8% reduction in insurance expenses. Despite the lower net profit, the company’s insurance service results for the first half of the year improved to a SR 33.1 million surplus compared to a SR 1.7 million loss in the previous year.
Accumulated losses reached SR 78.9 million as of June 30

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	256,971	365,951	-29.779	297,521	-13.629
Result of Insurance Services	12,803	23,017	-44.375	20,305	-36.946
Net Profit (Loss) of The Insurance Results	1,154	3,833	-69.893	4,670	-75.289
Net Profit (Loss) of The Investment Results	9,046	3,920	130.765	11,215	-19.34
Net Insurance Financing Expenses	-1,118	-3,363	-66.755	-1,254	-10.845
Net Profit (Loss), After Zakat, Attributable To Shareholders	1,992	6,677	-70.166	5,478	-63.636
Total Comprehensive Income Attributable to Shareholders of the Issuer	1,973	8,623	-77.119	4,799	-58.887
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	554,492	706,079	-21.468
Result of Insurance Services	33,108	-1,700	-
Net Profit (Loss) of The Insurance Results	5,824	-6,750	-
Net Profit (Loss) of The Investment Results	20,261	15,947	27.052
Net Insurance Financing Expenses	-2,372	-6,940	-65.821
Net Profit (Loss), After Zakat, Attributable To Shareholders	7,470	16,557	-54.883
Total Comprehensive Income Attributable to Shareholders of the Issuer	6,772	18,568	-63.528
Total Shareholders Equity (after Deducting Minority Equity)	469,103	451,343	3.934
Profit (Loss) per Share	0.15	0.33
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	1,480	0.3
Accumulated Losses	-78,889	15.8
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 Insurance revenue for the current quarter amounted to SR 256.9 million, compared to SR 365.9 million during the similar quarter of the previous year, representing an decrease of 29.8%, which is mainly driven by business decline of motor segment mainly.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	"Net profit for the current quarter amounted to SR 1.9 million, compared to SR 6.7 million for the similar quarter of the previous year, representing a decrease of 70.2% due to the following main reasons: • Insurance revenues for the current quarter decreased by SR 108.9 million representing decrease by 29.8% due mainly to decrease motor segment GWP compared to the similar quarter of the previous year, and • Decrease in other income for the current quarter amounted to SR 10.7 million by 79.7%, compared to the similar quarter of the previous year. Above points were partially offset by the following: • Decrease in insurance expenses as by 28.8% amounting to SR 98.7 million a result of business decline during the quarter and prevoius quarter. • Increase in net investment income by SR 5.1 million compared to the similar quarter of the previous year, representing increase by 130.8%. "
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	The decrease in insurance revenue during current quarter compared to previous quarter by SR 40.5 million, 13.6% is mainly due to decrease of insurance portfolio size. The decrease in insurance revenue during current quarter compared to previous quarter by SR 40.5 million, 13.6% is mainly due to decrease of insurance portfolio size.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	"The decrease in net profit for current quarter compared to the previous quarter by SR 3.5 million ( 63.6%) is mainly attributed to: • Decrease in net insurance service results 75.3% amounting to 3.5 million, mainly due to decrease in insurance revenues. • Decrease in net investment income by SR 2.1 million. "
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 SR 554.5 million, compared to SR 706.1 million during the similar period of the previous year, representing an decrease of 21.5%, which is driven by business decline of motor segment mainly.
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 profit for the current period amounted to SR 7.5 million, compared to SR 16.6 million for the similar period of the previous year, representing a decrease of 54.9% due to the following main reasons: • Insurance revenues for the current period decreased by SR 151.6 million representing decrease by 21.5% due mainly to decrease motor segment GWP compared to the similar period of the previous year, and • Decrease in other income for the current period amounted to SR 30.1 million by 91.8%, compared to the similar period of the previous year. Above points were partially offset by the following: • Enhancment the net insurance service results and increase by SR 12.6 million compared to the similar period of the previous year (186.3%). The current period amounted to SR 5.8 million surples compared to SR 6.7 million deficit to the similar period of the previous year. • Increase in net investment income by SR 4.3 million compared to the similar period of the previous year, representing increase by 27.1%."
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	"The accumulated losses over share capital, this period dropped to 15.8% compared to 18.3% for the same period last year. Gross Written Premiums (GWP) for the current period is amounted to SR 460.9 million compared to SR 763.5 million for the same period last year. A decrease of 39.6% of written premiums mainly a decrease from motor segment. Gross Written Premiums (GWP) for the current quarter is amounted to SR 200 million compared to SR 292.1 million for the same quarter last year. A decrease of 31.5% of written premiums mainly from motor segment."