Dubai Islamic Insurance & Reinsurance Company

1. Company Overview & Earnings Context

Dubai Islamic Insurance & Reinsurance Company (AMAN) reported a return to profitability in Q1 2026, reversing a net loss recorded in the same period last year. The improvement was driven by stronger shareholder income, lower operating expenses, and a reduction in Qard Hassan support requirements to policyholders. The company continues evaluating strategic alternatives following the cancellation of its planned takaful portfolio transfer transactions.

2. Financial Performance Snapshot

• Net profit after tax: AED 2.33M (vs. AED 1.68M loss in Q1 2025)

• Profit before tax: AED 2.33M (vs. AED 1.68M loss in Q1 2025)

• Basic & diluted EPS: AED 0.0103 (vs. AED -0.0074)

• Total income attributable to shareholders: AED 4.27M (vs. AED 0.71M)

• Other operating income: AED 4.11M (vs. AED 0.003M)

• General & administrative expenses: AED 4.00M (vs. AED 6.94M)

Compared to Q1 2025:

• Net result improved from a loss of AED 1.68M to a profit of AED 2.33M

• Shareholder income increased significantly

• Administrative expenses declined by approximately 42% YoY

3. Operational Highlights & Key Metrics

• Gross premiums written: AED 72.1M

• Gross technical profit: AED 7.13M

• Net technical profit: AED 6.04M

• Net investment income: AED 252K

• Policyholder surplus: AED 7.22M

• Total assets: AED 1.04B

• Total liabilities: AED 992.5M

• Cash & cash equivalents increased to AED 221.8M

• Net equity stood at AED 43.4M

4. Key Performance Drivers

• Strong turnaround from loss to profit driven by improved shareholder income

• Significant reduction in general and administrative expenses

• Lower Qard Hassan contribution requirements supported profitability

• Positive policyholder surplus generation during the quarter

• Strong cash generation from investing activities strengthened liquidity position

Operational observations:

• The company continues managing accumulated losses and regulatory solvency requirements

• Cash and cash equivalents increased by more than AED 50M during the quarter

• Management remains focused on preserving shareholder value while evaluating future strategic options

5. Outlook & Forward Guidance

Management stated that the company had been pursuing a strategy to exit the insurance sector and transform into an investment entity. However, this process was interrupted following the cancellation of the planned transactions by counterparties. The company continues evaluating alternative options while focusing on creating sustainable value for shareholders and business partners. Management also expects stronger economic growth and development in the UAE to positively support future performance.

6. 🧾 Investor Takeaway

AMAN delivered a notable turnaround in Q1 2026, returning to profitability after a loss in the prior-year period. While the company continues facing accumulated losses and solvency challenges, improving earnings, stronger liquidity, lower expenses, and positive policyholder surplus generation represent encouraging signs as management evaluates its future strategic direction.