Tawuniya H1 2026 profit drops 16% to SAR 609.8M; Q2 at SAR 321.8M

The insurer attributed the decline in first-half profit to a weaker insurance service result and net insurance result, as well as higher operating expenses and finance costs.

The insurance service result, before reinsurance, swung to a loss of SAR 2.35 billion from a profit of SAR 1.82 billion a year earlier.

The net insurance result, after reinsurance, fell 14.8% to SAR 649 million from SAR 761.9 million, mainly due to higher insurance service expenses.

The company said its general insurance business was affected by large claims in the engineering and energy segments during the second quarter, although most of those claims were recovered from reinsurers.

Health insurance expenses also increased due to higher claims costs, leaving the segment's net insurance result broadly in line with the year-earlier period.

The motor insurance business was affected by a higher loss ratio in the corporate portfolio, while the retail portfolio recorded an improvement in loss ratios following repricing measures implemented by the company.

Other operating expenses increased 21.6% to SAR 418.3 million from SAR 343.9 million, while finance costs rose to SAR 23.2 million from SAR 4.1 million.

Other income declined to SAR 21.5 million from SAR 174,000 a year earlier.

The decline in earnings was partly offset by a 15.9% increase in insurance revenue to SAR 11.99 billion from SAR 10.35 billion, driven by growth across the company's core business segments.

Net investment income rose 12.9% to SAR 416.1 million from SAR 368.6 million, while the total investment portfolio expanded 11.1% to SAR 13.5 billion from SAR 12.2 billion.

Net insurance and reinsurance finance expenses declined 37.7% to SAR 43.8 million from SAR 70.4 million, mainly due to changes in the discounting effect on insurance contract liabilities.

Tawuniya’s net profit in Q2 2026 fell 31.2% to SAR 321.77 million from SAR 467.42 million a year earlier.

Sequentially, net earnings rose 11.7% from SAR 288.08 million in Q1 2026.

Total shareholders’ equity, after minority interest, stood at SAR 5.67 billion at the end of the current period, compared with SAR 4.96 billion at the end of the corresponding period last year.

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