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

Arabian Shield reported a net profit after Zakat of SR 2.83 million for the quarter ended June 30, 2026, achieving a significant turnaround from the SR 29.91 million net loss recorded in the same period last year.
Insurance revenues for the quarter declined 12.5% year-over-year to SR 403.3 million, a drop attributed primarily to a contraction in the company's credit life sector.
The return to profitability was driven by a 40% reduction in insurance services expenses (down by SR 218.3 million) and a 19.6% increase in net investment results to SR 18.39 million, which collectively offset a 271% surge in net reinsurance contract expenses.
Gross Written Premiums (GWP) saw a substantial 222% year-over-year increase, rising by SR 944.7 million during the quarter, indicating strong underlying business growth despite the current decline in recognized insurance revenue.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	403,269	460,991	-12.521	398,396	1.223
Result of Insurance Services	76,657	-83,918	-	-5,608	-
Net Profit (Loss) of The Insurance Results	-2,426	-37,560	-93.541	-7,822	-68.984
Net Profit (Loss) of The Investment Results	18,390	15,381	19.563	25,740	-28.554
Net Insurance Financing Expenses	-833	-1,580	-47.278	-2,504	-66.733
Net Profit (Loss), After Zakat, Attributable To Shareholders	2,827	-29,913	-	4,898	-42.282
Total Comprehensive Income Attributable to Shareholders of the Issuer	7,085	-31,126	-	3,046	132.6
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Insurance Revenues	801,665	912,031	-12.101
Result of Insurance Services	71,049	-30,415	-
Net Profit (Loss) of The Insurance Results	-10,248	-40,224	-74.522
Net Profit (Loss) of The Investment Results	44,130	35,064	25.855
Net Insurance Financing Expenses	-3,337	-4,410	-24.331
Net Profit (Loss), After Zakat, Attributable To Shareholders	7,725	-23,460	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	10,131	-17,149	-
Total Shareholders Equity (after Deducting Minority Equity)	1,643,780	1,635,384	0.513
Profit (Loss) per Share	0.1	-0.29
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	-	-
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 declined to SR 403,269 thousand from SR 460,991 thousand in the equivalent quarter of previous year, a decrease of 13% as a result of decline in the company's credit life sector.
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 increase in profits before zakat and income tax for the current quarter of SR 32,493 thousand, a increase of 119% compared with the equivalent quarter of the previous year, was due to the following main reasons : Insurance Services Expenses : Decreased by SR 218,297 thousand compared to the same quarter of the previous year, reflecting a 40% decrease. Net Investment Income : Increased by SR 3,009 thousand compared to the same quarter of the previous year, representing a 20% increase. Net Insurance Financing Expenses : Decreased by SR 747 thousand compared to the same quarter of the previous year, reflecting a 47% decrease. This was offset by: Insurance Revenues : Decreased by SR 57,722 thousand compared to the same quarter of the previous year, reflecting a 13% decrease. Net Reinsurance Contract Expenses : Increased by SR 125,441 thousand compared to the same quarter of the previous year, representing a 271% increase. Other Operating Expenses : Increased by SR 2,749 thousand compared to the same quarter of the previous year, representing a 38% increase. Moreover, Gross Written Premiums (GWP) increased by SR 944,730 thousand compared with the equivalent quarter of the previous year, an increase of 222%.
The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is	insurance revenue reached SR 403,269 compared to SR 398,396 thousand in the previous quarter, an increase of 1% as a result of growth in the company's main sectors.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is	The decrease in profits before zakat and income tax for the current quarter of SR 2,107 thousand, a decrease of 29% compared with the previous quarter, was due to the following main reasons : Net Reinsurance Contract Expenses : Increased by SR 76,869 thousand compared to the previous quarter, representing a 3472% increase. Net Investment Income : Decreased by SR 7,350 thousand compared to the previous quarter, representing a 29% decrease. Other Operating Expenses : Increased by SR 1,824 thousand compared to the previous quarter, representing a 22% increase. This was offset by: Insurance Revenues : Increased by SR 4,873 thousand compared to the previous quarter, reflecting a 1% increase. Insurance Services Expenses : Decreased by SR 77,392 thousand compared to the previous quarter, reflecting a 19% decrease. Net Insurance Financing Expenses : Decreased by SR 1,671 thousand compared to the previous quarter, reflecting a 67% decrease. Moreover, Gross Written Premiums (GWP) increased by SR 21,740 thousand compared with the previous quarter, an increase of 2%.
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 declined to SR 801,665 from SR 912,031 thousand in the equivalent period of previous year, a decrease of 12%. as a result of decline in the company's credit life sector.
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 profits before zakat and income tax for the current period increased by SR 29,789 thousand , an increase of 170% compared with the equivalent period of the previous year, was due to the following main reasons : Insurance Services Expenses : Decreased by SR 211,830 thousand compared to the same period of the previous year, reflecting a 22% decrease. Net Investment Income : Increased by SR 9,066 thousand compared to the same period of the previous year, representing a 26% increase. Net Insurance Financing Expenses : Decreased by SR 1,073 thousand compared to the same period of the previous year, reflecting a 24% decrease. This was offset by: Insurance Revenues : Decreased by SR 110,366 thousand compared to the same period of the previous year, reflecting a 12% decrease. Net Reinsurance Contract Expenses : Increased by SR 71,488 thousand compared to the same period of the previous year, representing a 729% increase. Other Operating Expenses : Increased by SR 6,678 thousand compared to the same period of the previous year, representing a 58% increase. Moreover, Gross Written Premiums (GWP) increased by SR 1,446,136 thousand compared with the equivalent period of the previous year, an increase of 114%.
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 profits after Zakat and Income Tax for the current quarter reached SR 2,827 thousand compared to SR (29,913) thousand for the equivalent quarter last year, an increase of 109%. The earnings per share (EPS) for the current quarter is SAR 0.04 per share versus SAR (0.37) per share for the equivalent quarter last year. Total Equity at the end of the period is SR 1,642,439 thousand compared to SR 1,634,946 thousand for the equivalent period last year, an increase of 0.5%. (No minority interest). The authorized, issued and fully paid share capital of the Company is SR 798,152,950 consisting of 79,815,295 shares each with a nominal value of 10 Saudi Riyals.