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

Saudi Enaya reported a net loss of SAR 25.05 million for the quarter ending June 30, 2026, a sharp reversal from a net profit of SAR 169 thousand in the same quarter last year, bringing total accumulated losses to SAR 100.29 million (43.6% of share capital).
Insurance revenue for the quarter decreased 15.8% year-on-year to SAR 41.31 million, primarily driven by a SAR 72.9 million increase in unearned premiums which deferred revenue recognition to future periods.
The quarterly loss was further pressured by a 43.3% increase in insurance service expenses to SAR 64.2 million, attributed to higher incurred claims and increased business activity despite a 280% surge in Gross Written Premiums (GWP) to SAR 87.62 million.
External auditors issued a material uncertainty note regarding the company's ability to continue as a going concern, citing regulatory capital challenges and a pending capital restoration plan involving a capital reduction and rights issue following a failed merger attempt.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	41,310	49,041	-15.764	31,790	29.946
Result of Insurance Services	-22,892	4,243	-	990	-
Net Profit (Loss) of The Insurance Results	-22,892	4,243	-	990	-
Net Profit (Loss) of The Investment Results	1,933	2,140	-9.672	2,014	-4.021
Net Insurance Financing Expenses	-	-	-	-	-
Net Profit (Loss), After Zakat, Attributable To Shareholders	-25,046	169	-	37	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-25,046	169	-	37	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	73,100	104,902	-30.315
Result of Insurance Services	-21,902	7,068	-
Net Profit (Loss) of The Insurance Results	-21,902	7,068	-
Net Profit (Loss) of The Investment Results	3,947	4,447	-11.243
Net Insurance Financing Expenses	-	-	-
Net Profit (Loss), After Zakat, Attributable To Shareholders	-25,009	682	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-25,009	682	-
Total Shareholders Equity (after Deducting Minority Equity)	129,707	162,097	-19.981
Profit (Loss) per Share	-1.09	0.03
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	-100,293	44
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 41,310K, compared to SAR 49,041K during the similar quarter of the previous year, a decrease of 15.76%, This decrease is mainly driven by an increase in unearned premium of SAR 72,911K, as compared to Q2 2025, indicating that a substantial portion of GWP has been deferred to future periods due to the timing of policy issuance and revenue recognition. This decrease is partially offset by a substantial increase of SAR 64,583K GWP as compare to Q2 2025."
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) / Profit after zakat and income tax attributable to shareholders for the current quarter amounted to SAR (25,046) K, compared to SAR 169K during the similar quarter of the previous year, a decrease of 25,215K which was due to the following main reasons: * Insurance revenue decreased by 15.76% to SAR 41,310K from SAR 49,041K in the similar quarter of the previous year, primarily due to higher unearned premiums, resulting in the deferral of a larger portion of Gross Written Premiums (GWP) to future reporting period, and * Insurance service expenses increased by 43.31% to SAR 64,202K from SAR 44,798K in the similar quarter of the previous year, primarily due to higher incurred claims and related insurance service expenses resulting from increased business activity. This unfavorable movement is partially set off by the following: * Other Operating expenses for the current quarter amounted to SAR 3,827K, compared to SAR 4,535K during the similar quarter of the previous year, a decrease of 15.61%. Moreover, Gross Written Premiums (GWP) for the current quarter amounted to SAR 87,620K compared to SAR 23,037K during the similar quarter of the previous year, an increase of 280.34%, which was principally driven by business growth."
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 41,310K, compared to SAR 31,790K during the previous quarter, an increase of 29.95%,which was principally driven by business growth.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	"Net (Loss) /Profit after zakat and income tax attributable to shareholders for the current quarter amounted to SAR (25,046)K, compared to SAR 37K during the previous quarter, a decrease 25,083K which was due to the following main reasons: * Insurance service expenses increased by 108% to SAR 64,202K from SAR 30,800K in previous quarter , primarily due to higher incurred claims and related insurance service expenses resulting from increased business activity. Moreover, Gross Written Premiums (GWP) for the current quarter amounted to SAR 87,620K compared to SAR 55,142K during previous quarter, an increase of 58.90%."
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 73,100K, compared to SAR 104,902K during the similar period of the previous year, a decrease of 30.32%, This decrease is mainly driven by an increase in unearned premium of SAR 121,065K, as compared to pervious period 2025, indicating that a substantial portion of GWP has been deferred to future periods due to the timing of policy issuance and revenue recognition. This decrease is partially offset by a substantial increase of SAR 87,556K GWP as compare to previous period 2025."
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) /Profit after zakat and income tax attributable to shareholders for the current period amounted to SAR (25,009K), compared to SAR 682K during the similar period of the previous year, a decrease of 25,691K, which was due to the following main reasons: * Insurance revenue decreased by 30% to SAR 73,100K from SAR 104,902K in the similar period of the previous year, primarily due to higher unearned premiums, resulting in the deferral of a larger portion of Gross Written Premiums (GWP) to future reporting period, and This unfavorable movements were partially set-off by the following: • Other Operating expenses for the current period amounted to SAR 6,140K, compared to SAR 9,049K during the similar period of the previous year, a decrease of 32.15%. Moreover, Gross Written Premiums (GWP) for the current period amounted to SAR 142,762K compared to SAR 55,206K during the similar period of the previous year, an increase of 158.60%."
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 auditors draw attention to Note 4 to the interim condensed financial statements, which indicates that, as at 30 June 2026, the Company had accumulated losses of SAR 100.29 million, representing 43.61% of its share capital, and continued to face regulatory capital and solvency challenges. Following the non-approval of the proposed merger by shareholders, the Company obtained a six-month extension from the Insurance Authority and initiated a capital restoration plan involving a capital reduction and a proposed rights issue, subject to the relevant regulatory approvals. The successful implementation of these measures and achievement of the forecast operational improvements remain uncertain. These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. The Auditors conclusion is not modified in respect of this matter.
Reclassification of Comparison Items	None.
Additional Information	"The earning per share (EPS) for the current quarter is SAR (1.09) per share versus SAR 0.01 per share for the similar quarter of the previous year which is calculated by dividing the net income attributed to the shareholders after zakat and income tax of SAR (25,046)K over the weighted average number of ordinary outstanding shares of 23,000K for the current quarter and SAR 169K over 23,000K shares for the similar quarter of the previous year. Total Shareholders’ Equity (no minority interest) as at end of current quarter is SAR 129,707K versus SAR 162,097K as at end of the same quarter of the previous year, a decrease of 19.98%."