Walaa Cooperative Insurance Co. announces its Annual Financial Results for the Period Ending on 2025-12-31

This is mainly due to a decrease in Insurance revenues in Medical, Motor, Energy, Engineering and P&S Non-linked segments, representing a decrease of 36.87%, 12.96%, 1.15%, 14.33% and 27.42% respectively. This decrease in insurance revenues is partially offset by an increase in insurance revenues in Property and P&C Other general segments by 33.86% and 5.28% respectively.

Net loss after zakat and income tax excluding minority interest for the current year amounted to SAR 175,816 thousand, compared to a Net profit after zakat and income tax (no minority interest) of SAR 64,303 thousand of the previous year. The core reasons of net loss after zakat and tax excluding minority interest for the current year comprise the following:

• Insurance Service Results (loss) for current year amounted to SAR 160,366 thousand compared with insurance service results (loss) for the prior year of SAR 36,081 thousand. Majority of these losses are attributed to Motor segment where the loss of this segment has increased by 317.89% from 38,089 thousand last year to 159,170 thousand for current year.

• Net investment results for the current year amounted to SAR 47,642 thousand, compared to SAR 139,725 thousand during the previous year, which represent a decrease of 65.90%, mainly driven by the reduction in realized gain on investments measured at fair value compared with the last year and unrealized losses on investments measured at fair value compared with unrealized gain for the last year on same category due to equity market performance during the year.

• Other income for the current year amounted to SAR 2,827 thousand, compared to SAR 23,260 thousand during the previous year, which represents a decrease of 87.85%. Last year's other income was mainly driven by the disposal of land, which realized a gain of SAR 20,308 thousand.

• Other operating expenses for the current year, which amounted to SAR 50,262 thousand compared to SAR 35,278 thousand during the previous year, representing an increase of 42.47%. This includes expenses from newly acquired company Aspire amounting to SAR 8,322 thousand.

These unfavorable movements were partially offset by the following:

• Other operating income for the current year amounted to SAR 13,689 thousand compared to SAR Nil during the previous year. This other operating income was earned from the acquisition of ASPIRE during the year.

Total Shareholders' Equity excluding minority interest at the end of the current year is SAR 1,678,961 thousand versus SAR 1,831,581 thousand as at the end of the comparative year, which represents a decrease of 8.33%. Minority interest at the end of the current year is SAR 2,900 thousand (no minority interest in previous year).

Total comprehensive loss for the current year excluding minority interest amounted to SAR 154,284 thousand, compared to a total comprehensive income (no minority interest) amounted to SAR 95,402 thousand for the comparative year.

Moreover, Gross Written Premiums for the current period amounted to SAR 2,967,670 thousand, compared to SAR 3,504,512 thousand for the same period last year, representing a decrease of 15.32%.

During the current year, the Company acquired 88% ownership of Aspire Underwriting Agency Ltd (ASPIRE), a Managing General Agent (MGA) based in Dubai International Financial Center (DIFC), UAE. The acquisition is in line with Walaa’s interest to expand and diversify its inward reinsurance business. The investment is approximately SAR 68 million and the transaction is expected to make positive impact in Walaa financials. Post acquisition, the net income of Aspire amounts to SAR 5,367 thousand.