Abu Dhabi National Takaful Co

1. Company Overview & Earnings Context

Abu Dhabi National Takaful Company P.J.S.C. is an Abu Dhabi-based takaful insurance company incorporated in the UAE in November 2003. The company is registered with and regulated by the Central Bank of the UAE.

H1 2026 was a strong period for Abu Dhabi National Takaful, with takaful revenue increasing significantly and shareholder profitability improving. Net profit after tax increased to AED 64.14 million from AED 57.07 million in H1 2025.

2. Financial Performance Snapshot

• Takaful Revenue: AED 526.01 Million (+23.8% YoY)

• Takaful Service Result: AED 9.62 Million (+67.7% YoY)

• Takaful Fund Surplus: AED 15.91 Million (+63.7% YoY)

• Shareholders' Profit Before Tax: AED 70.09 Million (+12.3% YoY)

• Net Profit After Tax: AED 64.14 Million (+12.4% YoY)

• EPS: AED 0.61, vs. AED 0.54

• Shareholders' Equity: AED 633.59 Million

• Operating Cash Flow: AED 14.45 Million, vs. AED 9.31M

The key highlight was that revenue growth translated into stronger takaful profitability and higher shareholder earnings, with net profit growing by double digits.

3. Takaful & Operating Performance

Takaful revenue increased to AED 526.01 million from AED 424.87 million, representing growth of approximately 23.8% YoY. Takaful service expenses increased to AED 397.34 million from AED 336.37 million.

After accounting for paid retakaful contribution allocations and amounts recovered from retakaful contracts, the takaful service result increased to AED 9.62 million from AED 5.74 million, representing approximately 67.7% YoY growth.

The overall takaful financial result also improved to AED 6.16 million from AED 3.91 million. Together, these factors helped increase the surplus attributable to takaful participants to AED 15.91 million from AED 9.72 million.

The company's takaful contract liabilities stood at AED 833.76 million at the end of June, while retakaful contract assets remained substantial at AED 405.30 million.

4. Key Performance Drivers

One of the strongest drivers was the increase in Wakala fees earned from takaful participants, which rose to AED 158.44 million from AED 110.61 million, an increase of approximately 43.2% YoY.

This was partly offset by higher takaful expenses, which increased to AED 75.15 million from AED 44.08 million, while general and administrative expenses rose modestly to AED 37.94 million from AED 36.62 million.

Shareholder investment and other income was significantly lower at AED 4.75 million, compared with AED 19.22 million in H1 2025. Despite this decline, stronger operating contributions allowed shareholder profit before tax to increase to AED 70.09 million from AED 62.41 million.

The company's investment base also remained sizeable. Financial assets measured at FVOCI stood at AED 489.81 million, comprising investments held across both takaful participant and shareholder funds.

5. Balance Sheet, Investments & Cash Flow

Abu Dhabi National Takaful ended June 2026 with:

• Total Assets: AED 1.70 Billion

• Total Liabilities: AED 1.06 Billion

• Shareholders' Equity: AED 633.59 Million

• Takaful Contract Liabilities: AED 833.76 Million

• Retakaful Contract Assets: AED 405.30 Million

• FVOCI Financial Assets: AED 489.81 Million

• Total Term Deposits: AED 461.59 Million

• Total Cash & Bank Balances: AED 72.87 Million

Shareholders' equity increased from AED 601.32 million at the end of 2025 to AED 633.59 million, supported by H1 earnings despite the company paying AED 30 million in dividends during the period.

Cash generation also improved. Net cash generated from operating activities increased to AED 14.45 million from AED 9.31 million. Investing activities generated AED 21.65 million, while financing activities used AED 31.09 million, primarily reflecting the dividend payment. Cash and cash equivalents ended June at AED 81.87 million.

6. Investor Takeaway

Abu Dhabi National Takaful delivered a strong H1 2026 performance, with takaful revenue increasing 23.8% to AED 526.01 million and the takaful service result rising approximately 67.7% to AED 9.62 million. The takaful participants' surplus also increased substantially to AED 15.91 million.

Importantly, the improvement translated into higher shareholder profitability. Profit before tax increased 12.3% to AED 70.09 million, while net profit after tax rose 12.4% to AED 64.14 million. EPS consequently increased to AED 0.61 from AED 0.54.

The balance sheet also strengthened, with shareholders' equity increasing to AED 633.59 million from AED 601.32 million, despite AED 30 million of dividends being paid. Operating cash flow improved to AED 14.45 million, while the company maintained a substantial base of deposits and financial investments.

The independent reviewer issued an unmodified conclusion on the interim financial statements. Going into H2 2026, the key areas to monitor are takaful revenue growth, takaful service profitability, retakaful performance, Wakala fee growth, investment returns, operating cash flow and continued growth in shareholder earnings.