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

Arabia Insurance Cooperative Co. reported a net loss after Zakat of SAR 11.94 million for the quarter ended June 30, 2026, reversing from a profit of SAR 5.13 million in the same quarter last year. For the six-month period, the net loss reached SAR 26.74 million, contributing to accumulated losses of SAR 54.91 million, which represent 10.4% of the company's capital.
Quarterly insurance revenues grew 21% year-on-year to SAR 239.21 million, driven by increased volume in the Motor and Medical segments. However, revenues declined 3% compared to the previous quarter, primarily due to a slowdown in the Motor insurance segment.
The transition from profit to loss was primarily driven by a SAR 21.7 million decline in the net insurance service result and an SAR 8.1 million drop in investment income over the six-month period, further pressured by a SAR 5.9 million increase in operating expenses.
On a sequential basis, the quarterly net loss narrowed by 19.37% from SAR 14.80 million in the previous quarter, attributed to a SAR 9.1 million improvement in the insurance service result that offset a SAR 6.2 million decrease in investment income.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	239,210	197,764	20.957	246,810	-3.079
Result of Insurance Services	33,590	42,571	-21.096	2,669	1,158.523
Net Profit (Loss) of The Insurance Results	-6,307	1,963	-	-15,373	-58.973
Net Profit (Loss) of The Investment Results	2,574	10,158	-74.66	8,750	-70.582
Net Insurance Financing Expenses	-1,183	-1,024	15.527	-1,055	12.132
Net Profit (Loss), After Zakat, Attributable To Shareholders	-11,937	5,127	-	-14,804	-19.366
Total Comprehensive Income Attributable to Shareholders of the Issuer	-11,800	5,152	-	-14,518	-18.721
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	486,020	369,237	31.628
Result of Insurance Services	36,258	86,116	-57.896
Net Profit (Loss) of The Insurance Results	-21,680	13	-
Net Profit (Loss) of The Investment Results	11,324	19,380	-41.568
Net Insurance Financing Expenses	-2,238	-2,116	5.765
Net Profit (Loss), After Zakat, Attributable To Shareholders	-26,741	9,574	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-26,318	12,244	-
Total Shareholders Equity (after Deducting Minority Equity)	544,665	617,182	-11.749
Profit (Loss) per Share	-0.5	0.18
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	54,908	10.4
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	The reason behind the increase in insurance revenues in the current quarter compared to the same quarter of the previous year is mainly due to the increase in insurance revenues in the Motor insurance segment and the Medical insurance segment, despite the decrease in insurance revenues in the Engineering insurance segment.
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 reason behind the recognition of net loss after zakat and income tax for the current quarter, compared to the net profit for the same quarter of the previous year, is mainly due to the decrease in the net insurance service result by approximately SAR 8.3 million and net investment income by approximately SAR 7.6 million.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	The reason behind the decrease in insurance revenues during the current quarter compared to the previous quarter is mainly due to the decrease in insurance revenues in the Motor insurance segment.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	The reason behind the decrease in net loss after zakat and income tax during the current quarter compared to the previous quarter is mainly due to the lower negative impact in net insurance service result by approximately SAR 9.1 million, despite the decrease in net investment income by approximately SAR 6.2 million.
The reason of the increase (decrease) in the revenues during the current period compared to the same period of the last year is	The reason behind the increase in insurance revenues during the current period compared to the same period of the last year is mainly due to the increase in insurance revenues in the Motor insurance segment and the Medical insurance segment, despite the decrease in insurance revenues in the Engineering and Other insurance segments.
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 reason behind the recognition of net loss after zakat and income tax during the current period compared to the net income reported for the same period of the previous year, is mainly due to the decrease in net insurance service result by approximately SAR 21.7 million and the decrease in net investment income by approximately SAR 8.1 million, in addition to the increase in other operating expenses by approximately SAR 5.9 million.
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)	Not Applicable
Reclassification of Comparison Items	Some figures for the prior period have been reclassified to conform with the presentation of the current period. However, the reclassification did not have a material impact on the overall presentation of the condensed interim financial statements.
Additional Information	Loss/earnings per share is calculated by dividing the net loss/profit for the period after zakat and income tax by the weighted average number of issued shares.