Dubai Islamic Insurance and Reinsurance Co.

1. Company Overview & Earnings Context

Dubai Islamic Insurance & Reinsurance Company (AMAN) is a Dubai Financial Market-listed Islamic insurance company engaged in general takaful, retakaful and life takaful activities. Its insurance coverage includes motor, marine, fire and engineering, general accident, medical and life takaful risks.

AMAN returned to profitability in H1 2026, reporting net profit of AED 1.26 million, compared with a net loss of AED 9.43 million in H1 2025. The financial statements cover the six months ended 30 June 2026.

2. Financial Performance Snapshot

• Takaful Service Income: AED 23.71 Million (+104.8% YoY)

• Takaful Service Result: AED 1.28 Million, vs. AED 19.68 million

• Net Takaful Income: AED 4.94 Million, vs. AED 19.66 million

• Total Shareholders' Income: AED 9.18 Million, vs. AED 2.10 million

• Profit Before Tax: AED 1.26 Million, vs. AED 9.43 million loss

• Net Profit: AED 1.26 Million, vs. AED 9.43 million loss

• EPS: AED 0.0056, vs. loss per share of AED 0.0418

The headline improvement was therefore the return to profitability, although the underlying takaful service result declined significantly compared with H1 2025.

3. Takaful & Operating Performance

Takaful service income more than doubled to AED 23.71 million from AED 11.58 million. However, takaful expenses moved to a negative AED 1.73 million from positive AED 22.49 million in the comparable period.

As a result, the takaful service result before retakaful contracts declined to AED 21.98 million from AED 34.06 million. After AED 20.70 million of net retakaful expenses, the overall takaful service result stood at AED 1.28 million, compared with AED 19.68 million in H1 2025.

Net takaful income consequently declined to AED 4.94 million from AED 19.66 million, showing that AMAN's return to overall profitability was not driven by stronger core takaful results.

4. Key Performance Drivers

The major positive driver was the sharp increase in other operating income to AED 8.36 million, compared with just AED 6,063 in H1 2025. This helped total shareholders' income rise to AED 9.18 million from AED 2.10 million.

At the same time, general and administrative expenses declined substantially to AED 6.59 million from AED 12.54 million, providing another significant boost to the bottom line.

These improvements were sufficient to move AMAN from a AED 9.43 million loss to AED 1.26 million profit, despite considerably weaker takaful service results.

5. Balance Sheet, Cash Flow & Financial Position

AMAN ended June 2026 with:

• Total Assets: AED 1.03 Billion

• Total Shareholders' Equity: AED 48.58 Million

• Equity Attributable to Parent Shareholders: AED 49.01 Million

• Accumulated Losses: AED 173.39 Million

• Takaful Operations' Assets: AED 907.68 Million

• Takaful Contract Liabilities: AED 728.90 Million

• Takaful Operations' Cash & Cash Equivalents: AED 198.32 Million

Cash flow improved considerably. AMAN generated AED 3.34 million of net operating cash flow, compared with AED 83.98 million of cash used in H1 2025. Investing activities generated another AED 51.84 million, lifting total cash and cash equivalents to AED 226.05 million from AED 170.87 million at the beginning of 2026.

However, the company's accumulated losses still represented 76.81% of share capital, while its Minimum Capital Requirement solvency deficit stood at AED 53.88 million.

6. Investor Takeaway

AMAN's H1 2026 results showed a meaningful turnaround at the bottom line, moving from an AED 9.43 million loss to an AED 1.26 million profit. Lower administrative expenses and substantially higher other operating income were important drivers, while operating cash flow also returned to positive territory.

However, the underlying picture remains challenging. The takaful service result declined sharply, accumulated losses remain high, and the company continues to have a regulatory solvency deficit. The auditor highlighted a material uncertainty related to going concern, noting that these conditions may cast significant doubt on the Group's ability to continue as a going concern.

The auditor also issued a qualified conclusion relating to AED 575.77 million of unit-linked investments and the associated AED 692.19 million of unit-linked life liabilities. The auditor was unable to confirm the existence and valuation of these investments, with some issuing entities currently under liquidation.

Management's broader strategy remains focused on exiting the takaful business and transforming AMAN into an investment company, subject to the progress of portfolio sales and regulatory processes.

Key areas to monitor in H2 2026 are takaful profitability, the solvency deficit, accumulated losses, cash generation, unit-linked investment valuations and progress on AMAN's planned transformation into an investment company.