United Fidelity Insurance Company

1. Company Overview & Earnings Context

United Fidelity Insurance Company (P.S.C.) is an Abu Dhabi Securities Exchange (ADX)-listed insurance company operating across the UAE. The company provides insurance products across three principal segments: Commercial, Consumer and Employee Benefits, covering areas including engineering, marine, property, liability, motor, travel, medical and group life insurance.

United Fidelity showed improvement in H1 2026, with insurance revenue increasing 33.3% YoY to AED 365.12 million and its net loss narrowing to AED 6.36 million, compared with AED 8.92 million in H1 2025. The company also completed a AED 30 million capital increase during the period, strengthening its equity base.

2. Financial Performance Snapshot

• Insurance Revenue: AED 365.12 Million (+33.3% YoY)

• Insurance Service Loss: AED 14.43 Million (improved 10.0% YoY)

• Investment Income: AED 8.50 Million (-20.7% YoY)

• Loss Before Tax: AED 7.51 Million (improved 21.2% YoY)

• Net Loss: AED 6.36 Million (improved 28.8% YoY)

• Loss Per Share: AED 0.033, compared with AED 0.056 in H1 2025

Compared with H1 2025:

• Insurance revenue increased from AED 273.88 million to AED 365.12 million.

• Insurance service loss narrowed from AED 16.03 million to AED 14.43 million.

• Investment income declined from AED 10.72 million to AED 8.50 million.

• Loss before tax narrowed from AED 9.53 million to AED 7.51 million.

• Net loss improved from AED 8.92 million to AED 6.36 million.

• Loss per share improved from AED 0.056 to AED 0.033.

3. Operational Highlights & Key Metrics

• Share Capital: AED 190.00 Million

• Total Equity: AED 128.40 Million

• Capital Increase During H1: AED 30.00 Million

• Insurance Contract Liabilities: AED 566.30 Million

• Net Reinsurance Contract Assets: AED 286.22 Million

• Investments at FVTOCI: AED 142.87 Million

• Investments at FVTPL: AED 102.24 Million

• Bank Borrowings: AED 42.20 Million

4. Key Performance Drivers

United Fidelity's revenue growth was supported by higher business volumes, particularly in Consumer and Employee Benefits. Consumer insurance revenue reached AED 175.39 million, Employee Benefits contributed AED 131.11 million, and Commercial insurance generated AED 58.62 million during H1 2026.

Profitability across the segments remained mixed. Employee Benefits generated a AED 9.05 million profit before tax, while Consumer recorded a AED 13.50 million loss and Commercial recorded a AED 3.06 million loss. Overall, the company's loss before tax nevertheless improved to AED 7.51 million from AED 9.53 million in H1 2025.

Reinsurance performance also improved substantially, with the company recording a AED 4.58 million net recovery from reinsurance contracts held, compared with AED 56.50 million of net expenses in H1 2025.

5. Outlook & Forward Considerations

United Fidelity remains focused on improving its financial position and restoring regulatory capital adequacy. The company increased its share capital by AED 30 million during H1 2026, taking total share capital to AED 190 million and total equity to AED 128.40 million.

However, solvency remains the most important issue. At 30 June 2026, the company had a AED 105.55 million deficit against its AED 140.30 million Solvency Capital Requirement (SCR). This was an improvement from the AED 126.57 million deficit reported at the end of 2025. United Fidelity has submitted an updated solvency recovery plan to the Central Bank of the UAE, with compliance dependent on successful implementation of the plan, including capital injection.

6. Investor Takeaway

United Fidelity's H1 2026 results showed meaningful improvement but continued financial challenges. Insurance revenue increased 33.3% YoY, the net loss narrowed 28.8% to AED 6.36 million, and the company's capital base strengthened following the AED 30 million share capital increase.

The company has not yet returned to profitability, and its AED 105.55 million solvency capital deficit remains the key risk to monitor. The auditor specifically highlighted the solvency deficit, noting that compliance with regulatory capital requirements depends on successful implementation of the company's recovery plan, including further capital injection.

Overall, H1 2026 indicates progress in revenue growth, loss reduction and capitalization, but continued improvement in underwriting profitability and solvency will be critical to the company's turnaround.