National General Insurance Company

1. Company Overview & Earnings Context

National General Insurance Co. (P.J.S.C.) reported lower Q1 2026 profitability as weaker investment income and fair value losses on investments weighed on earnings despite a stronger insurance service result. The company operates across general, medical, and life insurance businesses in the UAE.

Management continued focusing on underwriting performance, reinsurance optimization, and investment portfolio management during the quarter while monitoring ongoing regional geopolitical developments and market volatility.

2. Financial Performance Snapshot

• Insurance revenue: AED 286.5M

• Insurance service result: AED 37.7M

• Net investment loss: AED (21.5M)

• Other investment income: AED 17.2M

• Profit before tax: AED 18.9M

• Net profit after tax: AED 18.4M

• Basic & diluted EPS: AED 0.11

Compared to Q1 2025:

• Insurance revenue increased from AED 281.1M to AED 286.5M

• Insurance service result increased from AED 28.1M to AED 37.7M

• Net profit declined from AED 35.6M to AED 18.4M

Additional highlights:

• Net fair value loss on financial assets at FVTPL totaled AED 31.0M

• Insurance finance expense net of reinsurance improved significantly compared to Q1 2025

3. Operational Highlights & Key Metrics

• Total assets: AED 1.70B

• Total equity: AED 708.0M

• Cash & bank balances: AED 76.1M

• Investment securities: AED 653.6M

• Investments on behalf of unit-linked products: AED 117.2M

• Investment properties: AED 20.3M

• Insurance contract liabilities: AED 222.7M

• Reinsurance contract assets: AED 320.3M

Investment portfolio composition:

• Quoted equity investments: AED 240.6M

• Fixed income investments/bonds: AED 178.5M

• Unit-linked investments: AED 117.2M

• Quoted debt securities at FVTOCI: AED 87.5M

Additional highlights:

• Operating cash flow turned positive at AED 17.7M

• Dividend income reached AED 7.26M during the quarter

• Cash and equivalents increased significantly from year-end 2025

4. Key Performance Drivers

• Stronger underwriting and insurance service performance supported operational profitability

• Significant unrealized losses on investment portfolio negatively impacted bottom-line earnings

• Higher dividend income and investment income from unit-linked products partially offset investment losses

• Improved insurance finance expense and reinsurance income supported profitability

• Positive operating cash flow strengthened liquidity during the quarter

The company also recorded:

• AED 30.97M net fair value loss on FVTPL investments

• AED 3.95M investment income from fixed deposits

• AED 2.77M investment income from unit-linked products

• AED 14.3M net cash generated from investing activities

5. Outlook & Forward Guidance

• Continued focus on underwriting profitability and investment portfolio optimization

• Management remains focused on maintaining strong solvency and liquidity metrics

• Ongoing monitoring of regional geopolitical developments and market volatility remains a priority

• The company continues strengthening risk management and reinsurance structures

• NGI remains focused on sustainable profitability across insurance and investment operations

The company also disclosed that geopolitical tensions in the Middle East during April 2026 increased uncertainty in economic environments and financial markets, although no material operational disruptions were identified during the reporting period.

6. 🧾 Investor Takeaway

NGI delivered improved underwriting and insurance service performance in Q1 2026, although weaker investment market conditions and fair value losses on investments significantly reduced overall profitability during the quarter.