Ras Alkhaima National Insurance Co

1. Company Overview & Earnings Context

Ras Al Khaimah National Insurance Company (RAK Insurance) delivered a strong H1 2026 performance, supported by disciplined underwriting, improved claims management, strong investment returns, and continued focus on technical profitability. The Company maintained healthy profitability while strengthening its balance sheet and shareholders' equity.

Management continued executing its strategy of prioritising profitable underwriting over premium growth, supported by optimised reinsurance arrangements and disciplined risk management.

2. Financial Performance Snapshot

• Insurance revenue: AED 278.5M (+9.0% YoY)

• Insurance service result: AED 33.6M (+50.0% YoY)

• Investment income: AED 12.7M (+27.0% YoY)

• Profit before tax: AED 31.4M (+19.0% YoY)

• Income tax expense: AED 2.8M

• Net profit after tax: AED 28.6M (+18.7% YoY)

• Earnings per share (EPS): AED 0.24 (vs AED 0.20 YoY)

Compared with H1 2025:

• Insurance revenue increased from AED 255.4M to AED 278.5M

• Insurance service result increased from AED 22.4M to AED 33.6M

• Investment income increased from AED 10.0M to AED 12.7M

• Profit before tax increased from AED 26.4M to AED 31.4M

• Net profit increased from AED 24.1M to AED 28.6M

• EPS increased from AED 0.20 to AED 0.24

3. Operational Highlights & Key Metrics

• Total assets: AED 901.1M

• Total equity: AED 248.1M

• Total liabilities: AED 653.0M

• Net cash generated from operating activities: AED 43.2M

• Net cash used in investing activities: AED 38.6M

• Net combined ratio: 86.7% (vs 90.9%)

• Reinsurance cession ratio: 44.8% (vs 44.2%)

• IFRS 4 Combined Operating Ratio: 87%

• Equity increased from AED 226.6M at FY2025 to AED 248.1M

• No securities were issued during the period.

4. Key Performance Drivers

RAK Insurance's improved performance was driven by disciplined underwriting, better claims management, and optimised reinsurance arrangements, resulting in stronger insurance service results and an improved combined ratio. Higher investment income also contributed positively to earnings, while the Company's continued focus on technical profitability and prudent risk selection supported healthy profitability and capital growth.

5. Outlook & Forward Guidance

Management remains focused on writing profitable business while continuing to invest in technology, operational efficiency, and customer service. The Company expects regulatory reforms to support stronger technical pricing across the insurance sector and will continue enhancing underwriting and claims management processes. While geopolitical developments remain a key area of focus, management noted that production across major business lines has returned to pre-conflict levels and will continue monitoring market conditions closely.

6. Investor Takeaway

RAK Insurance delivered a strong H1 2026 performance, driven by disciplined underwriting, improved claims management, and solid investment returns. Strong profitability, an improved combined ratio, growing shareholders' equity, and continued focus on technical underwriting position the Company well for sustainable long-term growth despite ongoing geopolitical and market uncertainties.