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Earnings Report

Union Insurance Company

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Union Insurance Company reported improved Q1 2026 profitability, supported by higher insurance revenue growth and stronger reinsurance recoveries across its life and general insurance operations in the UAE.

The company highlighted that a major claim reported during January 2026 was largely protected through reinsurance arrangements and fully reflected within the financial statements.

2. Financial Performance Snapshot

  • Insurance revenue: AED 166.9M

  • Insurance service result: AED 18.8M

  • Total investment income: AED 4.4M

  • Profit before tax: AED 15.4M

  • Net profit after tax: AED 14.1M

  • Basic & diluted EPS: AED 0.056

Compared to Q1 2025:

  • Insurance revenue increased from AED 144.3M to AED 166.9M

  • Net profit increased from AED 13.1M to AED 14.1M

3. Operational Highlights & Key Metrics

  • Total assets: AED 1.49B

  • Total equity: AED 294.2M

  • Cash & cash equivalents: AED 51.9M

  • Bank deposits: AED 443.5M

  • Insurance contract liabilities: AED 786.2M

  • Reinsurance contract assets: AED 549.3M

Segment highlights:

  • General insurance revenue: AED 156.0M

  • Life insurance revenue: AED 10.9M

Investment portfolio highlights:

  • FVTPL investments: AED 58.5M

  • Unit-linked assets: AED 312.7M


4. Key Performance Drivers

  • Strong growth in insurance revenue across life and general insurance businesses

  • Significant increase in reinsurance recoveries helping offset higher claims expenses

  • Stable investment income contribution during the quarter

  • Reinsurance protection helped mitigate the impact of a major claim reported during January 2026

  • Higher underwriting activity supporting premium growth and operational scale

5. Outlook & Forward Guidance

  • Continued focus on expanding life and general insurance operations across the UAE

  • Management remains focused on underwriting discipline, reinsurance protection, and operational stability

  • The company continues maintaining strong liquidity through large bank deposits and cash balances

  • Union Insurance remains focused on strengthening profitability and long-term capital position

6. 🧾 Investor Takeaway

Union Insurance delivered improved Q1 2026 profitability and revenue growth despite elevated claims activity, supported by strong reinsurance recoveries, stable investment income, and continued expansion across its life and general insurance operations.