Al Fujairah National Insurance Company

1. Company Overview & Earnings Context

Al Fujairah National Insurance Company PJSC (AFNIC) is an Abu Dhabi Securities Exchange (ADX)-listed insurance company established in Fujairah in 1976. The company writes all classes of general insurance and short-term life insurance and operates through its head office in Fujairah and branches in Dubai, Abu Dhabi, Sharjah, Khorfakkan and Dibba.

AFNIC delivered a strong H1 2026 performance, with insurance revenue increasing to AED 338.58 million and net profit after tax rising to AED 53.17 million. Insurance service results also improved substantially, reaching AED 36.84 million compared with AED 22.42 million in H1 2025.

2. Financial Performance Snapshot

• Insurance Revenue: AED 338.58 Million (+10.6% YoY)

• Insurance Service Result: AED 36.84 Million (+64.4% YoY)

• Investment & Other Income: AED 25.98 Million (+15.2% YoY)

• Profit Before Tax: AED 57.50 Million (+43.9% YoY)

• Net Profit: AED 53.17 Million (+43.5% YoY)

• Earnings Per Share (EPS): AED 39.95, compared with AED 27.84 in H1 2025

Compared with H1 2025:

• Insurance revenue increased from AED 306.22 million to AED 338.58 million.

• Insurance service result increased from AED 22.42 million to AED 36.84 million.

• Investment and other income increased from AED 22.56 million to AED 25.98 million.

• Profit before tax increased from AED 39.94 million to AED 57.50 million.

• Net profit increased from AED 37.06 million to AED 53.17 million.

• EPS increased from AED 27.84 to AED 39.95.

3. Operational Highlights & Key Metrics

• Total Assets: AED 1.05 Billion (+7.5% vs. Dec. 2025)

• Total Equity: AED 442.58 Million (+9.1% vs. Dec. 2025)

• Insurance Contract Liabilities: AED 539.93 Million

• Reinsurance Contract Assets: AED 139.60 Million

• Cash & Bank Balances: AED 42.64 Million

• Deposits: AED 178.82 Million

• Operating Cash Flow: AED 33.64 Million

• Dividend Paid During H1 2026: AED 13.31 Million

4. Key Performance Drivers

AFNIC's improvement was driven by stronger insurance service profitability and higher investment income. Insurance service results increased 64.4% YoY to AED 36.84 million, even as insurance revenue grew at a more moderate 10.6%. Investment and other income also increased 15.2% to AED 25.98 million, further supporting earnings growth.

The company's Motor and General segment was its largest business, generating AED 243.76 million of insurance revenue, while Life and Medical generated AED 94.82 million. Motor and General produced an insurance service result of AED 18.62 million, compared with a AED 5.66 million loss in H1 2025, representing a significant turnaround. Life and Medical generated an insurance service result of AED 18.22 million, down from AED 28.07 million a year earlier.

5. Outlook & Forward Considerations

AFNIC did not provide specific quantitative guidance for the remainder of 2026 in its interim financial statements. The company noted that interim results are not necessarily indicative of the results expected for the full financial year ending 31 December 2026.

The company is also adapting to the UAE's updated insurance regulatory framework. Under the Federal Decree-Law No. 6 of 2025, AFNIC has a one-year transition period from 16 September 2025 to align its operations and governance framework with the new requirements. Management stated that it is evaluating the impact and will implement the necessary changes within the permitted period.

6. Investor Takeaway

Al Fujairah National Insurance delivered a strong H1 2026, with insurance revenue increasing 10.6%, insurance service results rising 64.4%, and net profit growing 43.5% YoY to AED 53.17 million. The improvement was particularly notable in the Motor and General segment, which moved from an insurance service loss in H1 2025 to a positive result in H1 2026.

The balance sheet also strengthened, with total assets surpassing AED 1 billion and shareholders' equity increasing to AED 442.58 million from AED 405.80 million at the end of 2025. However, operating cash flow declined to AED 33.64 million from AED 93.83 million in H1 2025, largely reflecting movements in reinsurance contract balances, making cash generation an important area to monitor alongside the strong improvement in reported profitability.