Walaa Cooperative Insurance Co. announces its Interim Financial Results for the period ending on 2025-06-30 ( Six Months )

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 44.41%, 5.83%, 80.53%, 29.36% and 23.12% respectively. This decrease in insurance revenues is partially offset by an increase in insurance revenues in Property and P&C Other segments by 163.93% and 20.87% respectively.

Net Loss after zakat and income tax excluding minority interest for the current quarter amounted to SAR 49,354 thousand compared to Net income after zakat and income tax (no minority interest) amounting to SAR 24,437 thousand of the same quarter of last year. The core reasons for the net loss after zakat and tax excluding minority interest for the current quarter comprise the following:

• Insurance service result (loss) for the current quarter amounted to SAR 52,126 thousand, compared to Insurance service result (profit) of SAR 5,785 thousand during the comparative quarter. The insurance service loss for the current quarter was mainly driven by Medical and Motor.

• Net investment income for the current quarter amounted to SAR 18,688 thousand, compared to net investment income amounting to SAR 36,985 thousand during the same quarter of the previous year. This decrease in investment income for the current quarter was mainly driven by realized and unrealized losses on equities compared to realized and unrealized gains on equities in the same quarter of the previous year.

• this unfavorable impact on net loss after zakat and tax excluding minority interest for the current quarter is partially offset with a decrease in other operating expenses for the current quarter which amounted to SAR 11,911 thousand compared to SAR 13,148 thousand during the same quarter of the previous year, representing a decrease of 9.41%.

This is mainly due to a decrease in Insurance revenues in the Medical, Energy, and P&C Other segments, representing a decrease of 16.58%, 80.90% and 8.99%, respectively. This decrease in insurance revenues is partially offset by an increase in insurance revenues in Motor, Property, Engineering and P&S Non-linked segments by 6.87%, 15.47%, 12.31% and 23.66% respectively.

Net loss after zakat and income tax excluding minority interest for the current quarter amounted to SAR 49,354 thousand compared to a Net loss after zakat and income tax (no minority interest) amounting to SAR 67,950 thousand of the previous quarter, which represents a decrease of 27.37%. The core reasons for the decrease in net loss after zakat and tax excluding minority interest for the current quarter compared with the previous quarter comprise the following:

• Insurance service result (loss) for the current quarter amounted to SAR 52,126 thousand, compared to a loss of SAR 48,381 thousand during the previous quarter, which represents an increase of 7.74%. This unfavorable change is mainly attributable to Medical and Energy segments.

• Net investment income for the current quarter amounted to SAR 18,688 thousand, compared to net investment loss amounting to SAR 2,598 thousand during the previous quarter. The income from investments for the current quarter was mainly driven by the decrease in realized and unrealized losses on equities compared to the previous quarter.

• this favorable impact on net loss after zakat and tax excluding minority interest for the current quarter is partially offset with an increase in Other operating expenses for the current quarter which amounted to SAR 11,911 thousand compared to SAR 9,091 thousand during the previous quarter, representing an increase of 31.02%.

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 37.05%, 10.05%, 38.29%, 22.74% and 23.19% respectively. This decrease in insurance revenues is partially offset by an increase in insurance revenues in Property and P&C Other segments by 121.59% and 30.86% respectively

Net loss after zakat and income tax excluding minority interest for the current period amounted to SAR 117,304 thousand compared to Net Income after zakat and income tax (no minority interest) amounting to SAR 64,301 thousand of the previous period. The core reasons for the net loss after zakat and tax excluding minority interest for the current period compared with the previous period comprise the following:

• Insurance service result (loss) for the current period amounted to SAR 100,507 thousand, compared to a loss of SAR 8,564 thousand during the previous period, which represents an increase of 1,073.60%. This unfavorable change is mainly attributable to Motor, Property and Engineering segments.

• Net investment income for the current period amounted to SAR 16,090 thousand, compared to net investment income amounting to SAR 81,347 thousand during the previous period which represents a decrease of 80.22%. This decrease in investment income for the current period was mainly driven by realized and unrealized losses on equities compared to realized and unrealized gains on equities in the same period of the previous year.

• Other income for the current period amounted to SAR 1,444 thousand, compared to SAR 21,773 thousand during the same period of the previous year, which represents a decrease of 93.37%. 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 period amounted to SAR 21,002 thousand compared to SAR 19,154 thousand during the same period of the previous year, representing an increase of 9.65%.

During 2024, the Company undertook a rights issue and increased the share capital from SAR 850,583 thousand to SAR 1,275,583 thousand through offering a total of 42.5 million ordinary shares of a nominal value of SAR 10 per share, with an offer price of SAR 11 per share. The number of ordinary issued shares before the rights issue was 85,058 thousand, which was adjusted by 16,664 thousand shares to 101,722 thousand ordinary shares to compute EPS for the comparative period.

Total Shareholders' Equity excluding minority interest at the end of the current period is SAR 1,719,293 thousand versus SAR 1,336,096 thousand as at the end of the comparative period, which represents an increase of 28.68%. Minority interest at the end of the current period is SAR 2,345 thousand (no minority interest in comparative period).

Total comprehensive loss for the current period excluding minority interest amounted to SAR 112,288 thousand, compared to a total comprehensive income (no minority interest) amounted to SAR 64,301 thousand for the comparative period.

Moreover, Gross Written Premiums for the current period amounted to SR 966,000 thousand, compared to SAR 1,591,140 thousand for the same period last year, representing a decrease of 39.29%.

During the current period, the Company acquired 88% ownership of Aspire Underwriting Agency Ltd, 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 starting from end of the 4th quarter of the year 2025 onwards.