Union Insurance Company

1. Company Overview & Earnings Context

Union Insurance Company PJSC is an Abu Dhabi Securities Exchange (ADX)-listed insurance company providing life and general insurance solutions across the UAE through its network of branches. During H1 2026, the company delivered another period of profitable growth, supported by higher insurance revenue, improved investment income and stronger underwriting performance. The company also strengthened its balance sheet through a bonus share issue, maintained healthy liquidity and continued generating solid operating cash flows.

2. Financial Performance Snapshot

• Insurance Revenue: AED 333.35 Million (+11.2% YoY)

• Insurance Service Result: AED 22.82 Million (+8.8% YoY)

• Total Investment Income: AED 14.66 Million (+6.4% YoY)

• Profit Before Tax: AED 28.40 Million (+14.2% YoY)

• Net Profit: AED 25.87 Million (+13.7% YoY)

• Earnings Per Share (EPS): AED 0.103 (vs. AED 0.091 YoY)

Compared with H1 2025:

• Insurance revenue increased 11.2% to AED 333.35 million.

• Insurance service result increased 8.8% to AED 22.82 million.

• Total investment income increased 6.4% to AED 14.66 million.

• Profit before tax increased 14.2% to AED 28.40 million.

• Net profit increased 13.7% to AED 25.87 million.

• Earnings per share increased from AED 0.091 to AED 0.103.

3. Operational Highlights & Key Metrics

• Total Assets: AED 1.55 Billion

• Total Equity: AED 305.99 Million

• Insurance Contract Liabilities: AED 819.66 Million

• Reinsurance Contract Assets: AED 552.23 Million

• Cash & Cash Equivalents: AED 86.43 Million

• Bank Deposits: AED 447.86 Million

• Net Cash Generated from Operating Activities: AED 61.10 Million

• Share Capital: AED 250.00 Million

4. Key Performance Drivers

Union Insurance's H1 2026 performance was driven by double-digit growth in insurance revenue, supported by stronger underwriting performance and continued growth in investment income. Higher recoveries from reinsurance contracts and disciplined cost management also contributed to improved profitability. In addition, the company generated more than AED 61 million in operating cash flow, strengthening liquidity while maintaining a sizable portfolio of bank deposits and investment securities.

5. Outlook & Forward Guidance

Management continues to focus on profitable underwriting growth, disciplined risk management and maintaining a strong capital position while complying with the UAE's evolving insurance regulatory framework. Supported by healthy liquidity, a strengthened equity base and robust reinsurance arrangements, the company remains well positioned to pursue sustainable long-term growth.

6. Investor Takeaway

Union Insurance delivered a solid first-half performance in 2026, reporting double-digit growth in insurance revenue, profit before tax and net profit while generating strong operating cash flows. Backed by a solid balance sheet, ample liquidity and consistent underwriting performance, the company remains well positioned to deliver sustainable value for shareholders.