Earnings Report

Watania International Holding

H1 26

1. Company Overview & Earnings Context

Watania International Holding (PJSC) is a Dubai Financial Market (DFM)-listed investment holding company. The company was formerly known as Dar Al Takaful, with its insurance licence cancelled in 2023 as it transitioned into an investment holding structure. Its principal subsidiaries, Watania Takaful General and Watania Takaful Family, operate general, family and retakaful businesses in the UAE.

Watania delivered a stronger H1 2026 performance, with takaful revenue rising to AED 450.61 million and the Group returning to a positive takaful service result of AED 11.81 million. Net profit after tax more than doubled to AED 10.95 million, supported by stronger underwriting performance and significantly higher investment gains.

2. Financial Performance Snapshot

Takaful Revenue: AED 450.61 Million (+15.9% YoY)
Takaful Service Result: AED 11.81 Million vs. Loss of AED 0.90 Million
Total Investment Income: AED 33.35 Million (+99.6% YoY)
Net Takaful & Finance Result: AED 27.19 Million (+41.3% YoY)
Profit Before Tax: AED 11.82 Million (+106.9% YoY)
Net Profit: AED 10.95 Million (+101.7% YoY)
Earnings Per Share (EPS): AED 0.042, compared with AED 0.021 in H1 2025

Compared with H1 2025:

Takaful revenue increased from AED 388.90 million to AED 450.61 million.
Takaful service result improved from a AED 0.90 million loss to an AED 11.81 million profit.
Total investment income nearly doubled from AED 16.71 million to AED 33.35 million.
Net takaful and finance result increased from AED 19.24 million to AED 27.19 million.
Profit before tax increased from AED 5.71 million to AED 11.82 million.
Net profit increased from AED 5.43 million to AED 10.95 million.
EPS doubled from AED 0.021 to AED 0.042.

3. Operational Highlights & Key Metrics

Total Assets: AED 1.48 Billion
Total Equity: AED 272.12 Million
Cash & Bank Balances: AED 414.03 Million
Investments at FVTPL: AED 624.19 Million
Takaful Contract Liabilities: AED 996.65 Million
Retakaful Contract Assets: AED 283.54 Million
Operating Cash Flow: AED 49.31 Million
Borrowings: AED 66.67 Million, down from AED 100 Million at year-end 2025

4. Key Performance Drivers

The biggest improvement came from Watania's core takaful operations. General takaful revenue increased to AED 374.47 million, while Group Family generated AED 70.72 million and Family Takaful contributed AED 5.42 million. The overall takaful service result improved to AED 11.81 million, compared with a loss of AED 0.90 million in H1 2025.

General takaful was the strongest earnings contributor, generating AED 21.03 million of profit before tax, up from AED 12.70 million in H1 2025. Group Family contributed AED 4.68 million, while Family Takaful recorded a small loss of AED 0.79 million.

Investment performance also strengthened materially. Total investment income almost doubled to AED 33.35 million, largely supported by a AED 21.21 million fair-value gain on unit-linked investments, compared with AED 2.51 million in H1 2025. Investments at fair value through profit or loss also increased to AED 624.19 million from AED 563.70 million at year-end 2025.

5. Outlook & Forward Considerations

Watania did not provide specific quantitative full-year 2026 guidance in its interim financial statements. The Group stated that the heightened geopolitical tensions in the Middle East had not produced abnormal trends or unusual developments across its key business lines as of 30 June 2026, although management continues to monitor potential impacts.

The Group also continued reducing its financial leverage. Borrowings declined to AED 66.67 million from AED 100 million, following AED 33.33 million of repayments during H1. The Murabaha facility has a four-year maturity and carries a variable rate of three-month EIBOR plus 1.75%.

Watania's financing arrangements require the Group to maintain several financial covenants, including minimum capital of AED 200 million, a solvency coverage ratio of at least 100%, and a minimum liquid-assets cover of 100%.

6. Investor Takeaway

Watania International Holding delivered a clear improvement in H1 2026, with takaful revenue growing 15.9%, the takaful service business moving back into profit, and net earnings more than doubling to AED 10.95 million. The strongest improvement came from General Takaful, while investment gains provided an additional boost to Group profitability.

The balance sheet also strengthened, with total equity increasing to AED 272.12 million and borrowings declining by one-third to AED 66.67 million. Operating cash flow remained positive at AED 49.31 million, although it was slightly below AED 54.88 million in H1 2025.

The key point to monitor is the quality and sustainability of earnings. While underlying takaful profitability improved meaningfully, a substantial portion of the increase in investment income came from fair-value gains on unit-linked investments. Continued underwriting improvement, particularly across General Takaful, alongside disciplined leverage and investment performance, will therefore be important through the remainder of 2026.