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Earnings Report

Al Buhaira National Insurance Company

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Al Buhaira National Insurance Company P.S.C. reported significantly stronger Q1 2026 profitability supported by improved insurance service results, higher underwriting performance, stronger investment income, and lower finance costs. The Group operates across property, engineering, motor, marine, aviation, life, medical, and miscellaneous insurance segments across the UAE.

The company continued focusing on underwriting discipline, solvency recovery measures, operational efficiency, and investment portfolio management during the quarter.

2. Financial Performance Snapshot

  • Insurance revenue: AED 431.5M

  • Insurance service result: AED 25.2M

  • Investment & other income: AED 14.5M

  • Profit before tax: AED 34.0M

  • Net profit after tax: AED 31.0M

  • Basic & diluted EPS: 12.39 fils

Compared to Q1 2025:

  • Insurance revenue increased from AED 407.9M to AED 431.5M

  • Insurance service result increased from AED 7.4M to AED 25.2M

  • Net profit increased from AED 9.35M to AED 31.0M

Additional highlights:

  • Investment and other income increased to AED 14.5M

  • Finance costs declined significantly compared to Q1 2025

3. Operational Highlights & Key Metrics

  • Total assets: AED 1.54B

  • Total equity: AED 513.6M

  • Cash & cash equivalents: AED 61.8M

  • Investment properties: AED 794.5M

  • Investments at FVTOCI: AED 70.1M

  • Insurance contract liabilities: AED 689.1M

  • Reinsurance contract assets: AED 139.4M

  • Bank borrowings: AED 114.7M

Additional highlights:

  • Net insurance contract liabilities stood at AED 682.0M

  • Reinsurance contract liabilities reached AED 101.7M

  • Investment property portfolio remained stable during the quarter

  • The company maintained operations across Sharjah, Dubai, Abu Dhabi, Al Ain, Fujairah, Ajman, Ras Al Khaimah, and Khorfakkan

4. Key Performance Drivers

  • Strong improvement in insurance underwriting performance supported profitability growth

  • Higher insurance service result significantly improved earnings

  • Investment and deposit income supported bottom-line growth

  • Lower finance costs positively impacted profitability

  • Improved claims experience and reinsurance performance supported margins

The Group also recorded:

  • AED 120.3M insurance service result before reinsurance contracts held

  • AED 95.1M net expense from reinsurance contracts held

  • AED 250.9M premiums received during the quarter

  • AED 132.6M amounts received from reinsurers

5. Outlook & Forward Guidance

  • Continued focus on solvency recovery and capital management initiatives

  • Ongoing strengthening of underwriting controls and operational governance

  • Management continues monitoring the ongoing forensic investigation and related internal control review

  • The company remains focused on improving solvency capital requirements and regulatory compliance

  • ABNIC continues prioritizing profitability, liquidity management, and sustainable underwriting growth

Management also noted that the Central Bank of UAE has provided a no-objection letter on the company’s solvency recovery plan, while the Group continues implementing corrective measures to strengthen solvency metrics.

6. 🧾 Investor Takeaway

ABNIC delivered significantly stronger Q1 2026 profitability driven by improved underwriting performance, higher insurance service results, stronger investment income, and lower finance costs, while continuing to implement solvency recovery and governance enhancement initiatives.