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Earnings Report

Abu Dhabi National Takaful Co

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Abu Dhabi National Takaful Company P.S.C. delivered a strong Q1 2026 performance driven by significant growth in takaful revenue, higher wakalah fees, and improved profitability across both policyholders’ and shareholders’ operations. The company operates across motor, medical, fire, marine, engineering, general accident, and family takaful segments within the UAE market.

The quarter also reflected continued strength in investment income, commodity investments, and takaful operations despite fair value losses within the investment portfolio.

2. Financial Performance Snapshot

  • Takaful revenue: AED 260.61M

  • Takaful service result: AED 748K

  • Net financial takaful result: AED 3.95M

  • Shareholders’ investment & other income: AED 10.20M

  • Profit before tax: AED 39.12M

  • Net profit after tax: AED 35.93M

  • Basic & diluted EPS: AED 0.34

Compared to Q1 2025:

  • Takaful revenue increased from AED 203.42M to AED 260.61M

  • Net profit after tax rose from AED 27.51M to AED 35.93M

  • EPS improved from AED 0.26 to AED 0.34

  • Wakalah fee income increased from AED 52.45M to AED 84.13M

Additional investment highlights:

  • Investment income attributable to policyholders reached AED 7.44M

  • Commodity investment gains totaled AED 4.49M

  • Rental income, net reached AED 1.41M

3. Operational Highlights & Key Metrics

  • Total assets: AED 1.62B

  • Total shareholders’ equity: AED 624.8M

  • Total takaful operations assets: AED 1.04B

  • Cash & cash equivalents: AED 52.5M

  • Term deposits: AED 477.6M

  • Investment portfolio (FVOCI): AED 468.7M

  • Investment properties: AED 102.7M

Investment portfolio exposure:

  • UAE investments totaled AED 183.4M

  • Investments outside UAE totaled AED 285.3M

  • Gold bullion investments reached AED 60.1M

  • Silver bullion investments totaled AED 2.4M

Insurance operations highlights:

  • Takaful contract liabilities stood at AED 773.7M

  • Re-takaful contract assets totaled AED 379.2M

  • Policyholders generated a surplus of AED 4.76M during Q1 2026

4. Key Performance Drivers

  • Strong growth in takaful revenue significantly boosted operational performance

  • Wakalah fee income expanded sharply due to higher gross contributions

  • Investment and commodity gains supported shareholders’ profitability

  • Re-takaful recoveries contributed AED 50.71M during the quarter

  • Improved takaful finance result strengthened overall earnings quality

Operational observations:

  • Takaful service expenses declined to AED 176.44M from AED 184.13M despite higher revenue

  • Allocation of re-takaful contributions paid reached AED 134.14M

  • Claims paid during the quarter totaled approximately AED 106.98M

  • Policyholders’ Qard Hasan repayment reduced outstanding balances during the period

5. Outlook & Forward Guidance

  • The company continues focusing on underwriting growth and investment diversification

  • Strong capital position and solvency compliance support future expansion plans

  • Commodity investments, sukuk holdings, and diversified investment assets remain important earnings contributors

  • Management continues optimizing takaful and re-takaful structures under IFRS 17 reporting standards

  • Continued growth in wakalah income and policyholder surplus could support future profitability trends

The company confirmed compliance with UAE solvency margin requirements throughout the reporting period.

6. 🧾 Investor Takeaway

Abu Dhabi National Takaful Company delivered a strong Q1 2026 performance with robust growth in takaful revenue, higher wakalah fee income, and improved profitability. Strong investment income, commodity gains, and stable underwriting operations supported earnings growth, while the company maintained a solid balance sheet and strong solvency position.