National General Insurance Company

1. Company Overview & Earnings Context

National General Insurance Co. (NGI) is a UAE insurance company providing general and life insurance products, with its insurance activities covering general and medical insurance as well as life insurance.

NGI delivered stronger core insurance performance in H1 2026, with its insurance service result increasing to AED 60.68 million from AED 51.99 million in H1 2025. However, weaker investment performance resulted in net profit declining to AED 63.80 million from AED 85.25 million.

2. Financial Performance Snapshot

• Insurance Revenue: AED 596.16 Million

• Insurance Service Result: AED 60.68 Million (+16.7% YoY)

• Total Investment Income: AED 18.05 Million (-70.1% YoY)

• Profit Before Tax: AED 68.57 Million (-24.9% YoY)

• Net Profit: AED 63.80 Million (-25.2% YoY)

• EPS: AED 0.39, vs. AED 0.52 in H1 2025

• Total Comprehensive Income: AED 60.27 Million, vs. AED 87.86 million

The key contrast in H1 was improving insurance profitability but significantly weaker investment returns, which ultimately pulled overall earnings lower.

3. Insurance & Reinsurance Performance

NGI's core insurance business improved during H1 2026. The company's insurance service result increased 16.7% YoY to AED 60.68 million, compared with AED 51.99 million in the corresponding period of 2025.

Reinsurance remained an important part of NGI's insurance operations. At 30 June 2026, the company held AED 352.72 million of reinsurance contract assets, up from AED 289.42 million at the end of 2025. Reinsurance contract liabilities increased to AED 20.74 million from AED 13.19 million.

Insurance contract liabilities also increased significantly to AED 955.71 million from AED 871.05 million, reflecting the larger insurance liability position at the end of the first half.

4. Key Performance Drivers

The strongest positive driver was improved insurance service profitability. The insurance service result increased by approximately AED 8.69 million YoY, providing stronger earnings from NGI's core insurance operations.

The major drag came from investments. Total investment income declined to AED 18.05 million from AED 60.40 million, a fall of approximately 70%. NGI recorded an AED 11.13 million net fair-value loss on financial assets at FVTPL, compared with an AED 23.86 million gain in H1 2025.

NGI also recorded an AED 2.08 million fair-value loss on unit-linked investments, compared with a gain of AED 7.55 million in H1 2025. These weaker investment-market movements more than offset the improvement in insurance profitability and contributed to the decline in overall earnings.

5. Balance Sheet, Investments & Cash Flow

NGI ended June 2026 with:

• Total Assets: AED 1.74 Billion

• Total Equity: AED 679.94 Million

• Total Liabilities: AED 1.06 Billion

• Investment Securities: AED 592.61 Million

• Unit-Linked Investments: AED 131.34 Million

• Fixed Deposits: AED 430.96 Million

• Cash & Cash Equivalents: AED 64.76 Million

• Reinsurance Contract Assets: AED 352.72 Million

Total assets increased from AED 1.66 billion at the end of 2025, while total equity declined from AED 693.90 million to AED 679.94 million. NGI's investment securities increased substantially to AED 592.61 million from AED 482.74 million.

Cash generation was strong. Net cash generated from operating activities increased to AED 66.25 million from AED 38.18 million in H1 2025. NGI also generated AED 28.72 million from investing activities and paid AED 74.23 million in dividends, leaving cash and cash equivalents at AED 64.76 million.

6. Investor Takeaway

NGI delivered a stronger underlying insurance performance in H1 2026, with the insurance service result increasing 16.7% to AED 60.68 million. This indicates that the core insurance business improved despite the decline in headline profitability.

The main weakness was investment performance. Total investment income dropped around 70% to AED 18.05 million as fair-value movements shifted from substantial gains in H1 2025 to losses in H1 2026. This was the key factor behind net profit declining 25.2% to AED 63.80 million.

Cash generation was a positive point, with operating cash flow rising to AED 66.25 million from AED 38.18 million. NGI also maintained a sizeable investment and liquidity base across investment securities, fixed deposits and cash, despite paying AED 74.23 million in dividends during the first half.

The independent reviewer issued an unmodified conclusion, stating that nothing had come to its attention indicating that the interim financial information was not prepared, in all material respects, in accordance with IAS 34. Key areas to monitor in H2 2026 are insurance service profitability, investment returns, fair-value movements, operating cash flow and the company's insurance and reinsurance position.