Sharjah Insurance Company

1. Company Overview & Earnings Context

Sharjah Insurance Company P.S.C. reported a challenging Q1 2026 performance as underwriting losses and weak investment performance weighed heavily on profitability despite growth in insurance revenue. The company operates across property, motor, marine, engineering, and general insurance segments in the UAE.

The quarter was impacted by weaker insurance service results, investment fair value losses, and higher claims-related costs, although investment property income and tax benefits partially supported results.

2. Financial Performance Snapshot

• Insurance revenue: AED 10.93M

• Insurance service result: AED (6.66M)

• Net investment loss: AED (58.5K)

• Loss before tax: AED (7.55M)

• Tax income: AED 815K

• Net loss after tax: AED (6.74M)

• Basic & diluted EPS: AED (0.04)

Compared to Q1 2025:

• Insurance revenue increased from AED 8.32M to AED 10.93M

• Insurance service loss widened from AED (1.76M) to AED (6.66M)

• Net profit after tax declined from AED 6.79M profit to AED 6.74M loss

Investment-related performance:

• Fair value investment losses reached AED (1.09M)

• Investment property income contributed AED 943K

• Net insurance and investment result declined to AED (6.80M)

3. Operational Highlights & Key Metrics

• Total assets: AED 369.3M

• Total equity: AED 308.5M

• Cash & cash equivalents: AED 29.7M

• Investment properties: AED 48.2M

• Investments at FVTPL: AED 220.5M

• Investments at FVTOCI: AED 33.9M

• Insurance contract liabilities: AED 48.9M

Portfolio exposure:

• UAE investments totaled AED 175.6M

• GCC investments outside UAE totaled AED 79.0M

• Quoted securities represented the majority of investment holdings

Insurance segment highlights:

• Personal Motor Comprehensive remained the largest insurance segment

• Commercial Fire & Allied Lines contributed significantly to liabilities

• Reinsurance assets totaled AED 35.0M

4. Key Performance Drivers

• Higher insurance revenue supported topline growth during the quarter

• Increased insurance service expenses and claims costs significantly impacted underwriting profitability

• Onerous contract losses negatively affected insurance service results

• Fair value losses on investments weighed on overall profitability

• Investment property income provided partial support against underwriting losses

Additional operational observations:

• Insurance service expenses reached AED 14.7M

• Allocation of reinsurance premiums amounted to AED 5.44M

• Claims and directly attributable expenses paid totaled AED 16.16M

• Cash and cash equivalents declined by AED 12.1M during Q1 2026

5. Outlook & Forward Guidance

• Management continues focusing on underwriting discipline and portfolio management

• Investment portfolio performance remains a key earnings driver for future periods

• Reinsurance optimization and claims management remain important operational priorities

• The company maintains strong capital reserves despite quarterly losses

• Investment properties and diversified securities holdings continue supporting balance sheet stability

The company also maintained compliance with IFRS 17 reporting standards and continues operating with significant exposure to UAE and GCC equity markets through both FVTOCI and FVTPL portfolios.

6. ???? Investor Takeaway

Sharjah Insurance Company reported a weak Q1 2026 as underwriting losses, higher claims costs, and investment fair value losses pushed the company into a net loss position despite higher insurance revenue growth. However, the company continues maintaining a strong equity base and sizeable investment portfolio across UAE and GCC markets.