Al Wathba National Insurance Co

1. Company Overview & Earnings Context

Al Wathba National Insurance Company PJSC reported strong insurance revenue growth in Q1 2026 driven by expanding underwriting activity and continued portfolio growth across multiple insurance segments. The Group operates across motor, health, general insurance, syndicate portfolio, investments, and real estate activities in the UAE.

Management highlighted strong customer service performance during the quarter, with the company maintaining a 99% service level in its call center operations despite continued portfolio expansion.

2. Financial Performance Snapshot

• Insurance revenue: AED 245.0M

• Insurance service result: AED 8.8M

• Net investment loss: AED (20.1M)

• Net insurance finance expense: AED (12.3M)

• Loss before tax: AED (20.8M)

• Net loss after tax: AED (15.9M)

• Loss per share: AED (0.08)

Compared to Q1 2025:

• Insurance revenue increased from AED 164.0M to AED 245.0M

• Insurance service result improved from AED 7.3M to AED 8.8M

• Net loss improved slightly from AED (16.1M) to AED (15.9M)

Additional highlights:

• First-quarter insurance revenue reached the highest level in the company’s history

• Motor, health, and general insurance segments all contributed to topline growth

3. Operational Highlights & Key Metrics

• Total assets: AED 1.96B

• Total shareholders’ equity: AED 1.22B

• Cash & cash equivalents: AED 17.9M

• Investment properties: AED 684.2M

• Financial assets at FVTOCI: AED 177.3M

• Financial assets at FVTPL: AED 597.3M

• Borrowings: AED 48.5M

Segment insurance revenue contribution:

• Motor: AED 122.6M

• Health: AED 46.5M

• General insurance: AED 66.8M

• Syndicate portfolio: AED 9.5M

Additional highlights:

• Net cash generated from operating activities reached AED 26.3M

• Investment property portfolio remained stable at AED 684M+

• Insurance service ratio stood at 3.63%

4. Key Performance Drivers

• Strong premium growth across insurance segments supported record quarterly insurance revenue

• Higher fair value losses on investments significantly impacted bottom-line profitability

• Insurance service performance improved due to underwriting discipline and pricing strategy

• Increased insurance finance expenses weighed on earnings during the quarter

• Continued investment portfolio volatility negatively impacted investment income

The company also recorded:

• AED 57.7M fair value loss on financial assets at FVTPL

• AED 32.7M dividend income during the quarter

• Positive operating cash flow despite investment-related losses

• Continued portfolio expansion across motor and electric vehicle insurance lines

5. Outlook & Forward Guidance

• Management expects continued double-digit growth in the UAE insurance market during 2026

• Al Wathba remains focused on accelerating growth across all insurance business lines

• Technology-led operational transformation and customer experience enhancement remain strategic priorities

• Continued expansion in motor and electric vehicle insurance portfolios is expected

• The company remains focused on governance, regulatory alignment, and underwriting discipline

Management also highlighted continued focus on Emiratization initiatives, operational efficiency, and strengthening reinsurance capacity to support future portfolio growth.

6. 🧾 Investor Takeaway

AWNIC delivered record first-quarter insurance revenue growth in Q1 2026 supported by expanding underwriting activity and strong operational execution, although investment market volatility and higher insurance finance expenses continued weighing on overall profitability during the quarter.