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

Gulf General reported a net loss of SAR 29.49 million for the six-month period ending June 30, 2026, narrowing its losses by 44.2% compared to the SAR 52.86 million loss recorded in the same period last year.
Insurance revenue for the half-year reached SAR 174.9 million, while quarterly revenue grew 18.3% year-on-year to SAR 93.85 million, primarily driven by a 28.7% expansion in the motor insurance business line.
The reduction in net loss was supported by a 69.9% improvement in the insurance service result (narrowing the service loss) and a 77.8% increase in investment income, which rose to SAR 5.88 million for the period.
The company faces significant financial pressure as accumulated losses reached SAR 288.3 million, representing 96.1% of its capital; this triggered a "material uncertainty" warning from auditors regarding going concern and a solvency ratio below required levels.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	93,847	79,344	18.278	81,056	15.78
Result of Insurance Services	-6,194	-18,588	-66.677	-4,401	40.74
Net Profit (Loss) of The Insurance Results	-12,359	-26,595	-53.528	-11,883	4.005
Net Profit (Loss) of The Investment Results	2,728	1,481	84.199	3,149	-13.369
Net Insurance Financing Expenses	-345	-22	1,468.181	-185	86.486
Net Profit (Loss), After Zakat, Attributable To Shareholders	-15,469	-29,079	-46.803	-14,019	10.343
Total Comprehensive Income Attributable to Shareholders of the Issuer	-15,469	-29,079	-46.803	-14,019	10.343
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	174,903	173,453	0.835
Result of Insurance Services	-10,595	-35,153	-69.86
Net Profit (Loss) of The Insurance Results	-24,242	-48,064	-49.563
Net Profit (Loss) of The Investment Results	5,877	3,306	77.767
Net Insurance Financing Expenses	-530	-258	105.426
Net Profit (Loss), After Zakat, Attributable To Shareholders	-29,488	-52,861	-44.215
Total Comprehensive Income Attributable to Shareholders of the Issuer	-29,488	-50,354	-41.438
Total Shareholders Equity (after Deducting Minority Equity)	135,626	173,552	-21.852
Profit (Loss) per Share	-0.98	-1.76
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	-288,312	-96.1
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 SR 93,847 K, compared to SR 79,344 K during the similar quarter of the previous year, an increase of 18.28%, which was principally driven by increase in business growth and increase in the insurance revenue of Motor line of business, by 28.66%.
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 loss before zakat for the current quarter amounted to SR -14,296 K, compared to the loss of SR -27,879 K for the same quarter of the last year. Net loss after zakat for the current quarter amounted to SR-15,469 K, compared to a net loss of SR -29,079 K for the same quarter of the last year, due to the following reasons: Decrease of total insurance service result by SR 12,861 K compared with the same quarter of the last year. Increase in investment income result to SR 2,728 K compared to SR 1,481 K in the similar quarter of last year with a change by SR 1,247 K of 84.20%.
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 SR 93,847 K, compared to SR 81,056 K during the previous quarter, an increase of 15.78% which was principally driven by increase in business growth and increase in the insurance revenue of Motor line of business by 22.86%.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	Net Loss before zakat for the current quarter amounted to SR -14,269 K, compared to the loss of -12,819 K for the previous quarter. Net Loss after zakat for the current quarter amounted to SR -15,469K, compared to the loss of SR -14,019 K the previous quarter, due to the following reasons: - Increase in insurance service result (expense) by SR 476 K compared with the previous quarter an increase of 4.01%. - Decrease in investment return by -421 in the previous quarter of the company with change of -13.37%.
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 174,903 K, compared to SR 173,453 K during the same period of the previous year, an increase of 0.84% which was principally driven by increase in business growth of the company and the increase in insurance revenue of motor line of business by 5%.
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 before zakat for the current period amounted to SR-27,088 K, compared to the loss of-50,461 K for the same period last year. Net Loss after zakat for the current period amounted to SR-29,488K, compared to the loss of SR -52,861K same period last year, due to the following reasons. Decrease in Total insurance service result by SR 21,543K compared with the same period last year with a decrease of -47.05%. - Increase in investment return by SR 2,571K from the same period last year of the company with the change of 77.77%.
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 external auditor of the company, draw attention to Note 2 (f) of these financial statements, which indicates that the Company has incurred a net loss of SR 29.4 million for the six month period 30 June 2026 and, as of that date, the Company’s accumulated losses amounted to SR 288.3 million, which represents 96.1% of the share capital. The solvency ratio which stands at a lower rate than required. These conditions, along with other matters as set forth in Note 2(f), indicate the existence of material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. The auditor opinion is not modified in respect of this matter.
Reclassification of Comparison Items	Certain historical comparative figures have been reclassified to conform to the current period.
Additional Information	The Loss per share (LPS) after Zakat for the current period is SR-0.98 per share versus a loss of SR-1.76 per share for the same period last year, which is calculated by dividing the net loss amount of SR-29,488 K over the number of ordinary outstanding shares of 30,000 K. Total comprehensive loss for the current year is SR -29,488 K compared to a loss of SR -50,354K for the previous year. Total Shareholders’ Equity (no minority interest) as at end of current quarter is SR 135,626 K versus SR 173,552 K as at end of the previous period, a decrease of -21.85%. Referring to the fact that the company's accumulated losses have reached -96% of its capital for the period ending June 30, 2026, the company will apply the procedures and instructions applicable to listed companies whose accumulated losses exceed 50% of their capital. Furthermore, on Sunday, 29/07/1447H (corresponding to 18/01/2026G), the Extraordinary General Assembly approved the company's continuity and delegated the Board of Directors to take all necessary measures and actions to address such losses, pursuant to the requirements of Article (132) of the Companies Law.