Al Wathba National Insurance Co

1. Company Overview & Earnings Context

Al Wathba National Insurance Company PJSC (AWNIC) is an ADX-listed Abu Dhabi-based insurance company engaged in writing general insurance across multiple classes. The Group also has investment management, real estate and reinsurance-related subsidiaries, including participation in the Lloyd’s market through Protected Cell 27.

H1 2026 was a strong growth period for AWNIC, with insurance revenue reaching a record AED 517.74 million and net profit more than doubling to AED 50.72 million from AED 25.10 million. Management described the revenue figure as the highest first-half insurance revenue in the company’s history.

2. Financial Performance Snapshot

• Insurance Revenue: AED 517.74 Million (+48.5% YoY)

• Insurance Service Result: AED 5.18 Million (-58.6% YoY)

• Net Investment Income: AED 70.07 Million (+192.3% YoY)

• Net Insurance & Investment Result: AED 73.35 Million (+121.2% YoY)

• Profit Before Tax: AED 51.70 Million (+97.1% YoY)

• Net Profit: AED 50.72 Million (+102.0% YoY)

• EPS: AED 0.25, vs. AED 0.12

• Total Comprehensive Income: AED 58.53 Million, vs. AED 2.87M

The main earnings story was therefore exceptional investment-income growth, which more than compensated for weaker underwriting margins.

3. Insurance & Reinsurance Performance

Insurance revenue increased strongly to AED 517.74 million from AED 348.69 million, reflecting approximately 48% YoY growth and continuing expansion of AWNIC’s insurance portfolio.

However, insurance service expenses increased to AED 436.23 million from AED 277.75 million. Reinsurance recoveries increased to AED 123.16 million, while allocation of reinsurance premiums rose to AED 199.49 million.

As a result, the final insurance service result declined to AED 5.18 million from AED 12.52 million. Management attributed the moderation in underwriting margins to pricing pressure, residual flood-related claims and continued expansion of the underwriting portfolio.

AWNIC continues to focus on underwriting discipline, risk selection and pricing adequacy to support sustainable technical profitability.

4. Key Performance Drivers

The biggest positive driver was investment performance. Net investment income surged to AED 70.07 million from AED 23.97 million, almost tripling YoY.

This included an AED 24.79 million fair-value gain on investment properties, compared with AED 13.58 million in H1 2025. Other investment income also increased sharply to AED 40.47 million from AED 10.62 million.

AWNIC additionally recorded AED 2.90 million of profit from the disposal of a Dubai villa, while its share of profit from associates was AED 6.32 million. This was partly offset by a AED 6 million impairment loss on an associate investment.

The company is also progressing its growth strategy through AI-assisted underwriting and claims tools, CRM and systems upgrades, and new products across cyber, climate-linked property and tailored health insurance. Management expects expansion of mandatory health coverage to support further growth in its health book during H2 2026 and into 2027.

5. Balance Sheet, Investments & Cash Flow

AWNIC ended June 2026 with:

• Total Assets: AED 2.06 Billion

• Total Equity: AED 1.24 Billion

• Total Liabilities: AED 815.69 Million

• Investment Properties: AED 723.37 Million

• FVTPL Investments: AED 646.92 Million

• FVOCI Investments: AED 176.96 Million

• Cash & Cash Equivalents: AED 39.19 Million

• Total Deposits & Cash: AED 75.38 Million

• Borrowings: AED 104.81 Million

Total equity increased from AED 1.24 billion at year-end to AED 1.243 billion, despite AWNIC paying AED 51.75 million in dividends during H1.

Operating cash flow remained positive at AED 17.91 million, although lower than AED 30.15 million in H1 2025. Investing activities generated AED 24.42 million, while financing activities used AED 77.53 million, mainly due to debt repayments and dividends. Consequently, cash and cash equivalents declined to AED 39.19 million from AED 74.39 million.

6. Investor Takeaway

AWNIC delivered a very strong H1 2026 headline performance, with insurance revenue rising approximately 48% to a record AED 517.74 million and net profit more than doubling to AED 50.72 million. EPS also increased to AED 0.25 from AED 0.12.

The key strength was investment performance, with net investment income nearly tripling to AED 70.07 million. However, core insurance profitability was softer, with the insurance service result falling to AED 5.18 million despite strong revenue growth. This makes the conversion of premium growth into underwriting profit an important area to watch.

Management remains positive on H2 2026, supported by the UAE’s economic growth, continued real estate and infrastructure development, expansion of mandatory health insurance and new product opportunities. At the same time, inflation in motor and health claims costs, pricing competition and underwriting margins remain key risks being monitored.

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. Going into H2 2026, the key areas to monitor are insurance revenue growth, underwriting margins, investment returns, claims inflation, operating cash flow, digital transformation initiatives and growth of the Lloyd’s and health insurance businesses.