MEDGULF H1 2025 profit drops 70% to SAR 18.2M; Q2 losses reach SAR 1.5M

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co. (MEDGULF) posted a 70% fall in its net earnings for H1 2025 to SAR 18.2 million, compared to SAR 59.9 million in H1 2024.

The profit decline was attributed to a 51.76% year-on-year (YoY) drop in net investment income to SAR 15.8 million due to lower returns from fair value-measured investments. Additionally, other income shifted from SAR 19.3 million in the prior year to an expense of SAR 2.1 million.

On a positive note, insurance revenue rose 18.56% YoY to SAR 2.03 billion, supported by growth in acquired medical and motor insurance business.

In Q2 2025, MEDGULF posted a net loss of SAR 1.47 million, compared to a net profit of SAR 33.61 million in Q2 2024. The quarterly performance was weighed down by a 79.6% YoY decline in net investment results, impacted by lower fair values of traded instruments.

Other operating income also dropped 93.5% YoY, as the same quarter last year included exceptional one-off gains.

Compared to the previous quarter, Q2 net profit fell 107.5% from SAR 19.64 million in Q1 2025.

Shareholders’ equity, no minority interest, reached SAR 1.04 billion by the end of H1 2025, compared with SAR 977.2 million in the year-earlier period.

Accumulated losses reached SAR 136.96 million by the end of the current period, representing 13% of the company's capital.

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