Dubai National Insurance & Reinsurance

1. Company Overview & Earnings Context

Dubai National Insurance & Reinsurance Co. (DNIR) reported its unaudited financial results for the six months ended 30 June 2026. The company delivered a stronger first-half performance, with insurance revenue, insurance service result, investment income and net profit all increasing YoY.

Net profit increased to AED 41.69 million from AED 36.40 million, representing growth of approximately 14.5% YoY.

2. Financial Performance Snapshot

• Insurance Revenue: AED 334.67 Million (+26.0% YoY)

• Insurance Service Result: AED 10.56 Million (+54.5% YoY)

• Investment Income: AED 33.02 Million (+4.2% YoY)

• Net Insurance & Investment Results: AED 47.79 Million (+12.9% YoY)

• Profit Before Tax: AED 43.60 Million (+14.8% YoY)

• Net Profit: AED 41.69 Million (+14.5% YoY)

• EPS: AED 0.36, vs. AED 0.32 in H1 2025

Overall, DNIR recorded strong growth in its core insurance operations, with the insurance service result growing considerably faster than insurance revenue.

3. Insurance & Underwriting Performance

Insurance revenue increased to AED 334.67 million, up approximately 26% from AED 265.61 million in H1 2025.

The company's insurance service result increased 54.5% to AED 10.56 million, compared with AED 6.83 million a year earlier, indicating an improvement in the contribution from its core insurance activities.

Reinsurance provided significant protection during the period. DNIR recognised AED 147.64 million recoverable from reinsurance, while the allocation of reinsurance premiums amounted to AED 140.61 million. This resulted in net income of AED 7.03 million from reinsurance contracts held.

4. Key Performance Drivers

Investment income remained an important contributor to earnings, increasing to AED 33.02 million from AED 31.70 million.

This included:

• Dividend Income from Financial Investments: AED 23.33 Million

• Net Income from Investment Properties: AED 5.54 Million

• Net Interest Income: AED 4.16 Million

Combined net investment income, insurance finance expense and reinsurance finance income reached AED 37.23 million, compared with AED 35.50 million in H1 2025.

Together with the stronger insurance service result, this lifted profit before tax by 14.8% to AED 43.60 million and net profit by 14.5% to AED 41.69 million.

5. Balance Sheet, Investments & Cash Flow

DNIR ended June 2026 with:

• Total Assets: AED 1.69 Billion

• Total Equity: AED 982.62 Million

• Total Liabilities: AED 711.28 Million

• Cash & Bank Balances: AED 270.83 Million

• Reinsurance Contract Assets: AED 437.50 Million

• Insurance Contract Liabilities: AED 662.22 Million

Total equity increased from AED 950.89 million at the end of 2025 to AED 982.62 million, while retained earnings increased to AED 337.71 million.

The company's financial investment portfolio was also substantial, with financial assets measured at fair value totalling approximately AED 649.05 million at the end of June.

Cash flow was weaker. DNIR recorded AED 26.15 million of net cash used in operating activities, compared with AED 7.55 million generated in H1 2025. Investing activities used another AED 174.41 million, while the company paid AED 17.33 million in dividends.

6. Investor Takeaway

DNIR delivered a positive H1 2026 earnings performance, with insurance revenue increasing 26%, the insurance service result rising 54.5% and net profit growing 14.5% to AED 41.69 million.

The combination of improving insurance operations and stable investment income supported the increase in overall profitability. Shareholders' equity also strengthened to AED 982.62 million.

However, cash generation was weaker during the period, with operating cash flow turning negative and cash and cash equivalents falling to AED 119.84 million from AED 337.72 million at the beginning of the year.

The financial statements also highlight a significant insurance claim related to damaged motor vehicles and other assets. Management noted that the loss assessment remains ongoing and that the final amounts may differ from current estimates.

Key areas to monitor in H2 2026 are insurance revenue growth, underwriting profitability, reinsurance recoveries, investment income, operating cash flow and developments relating to the outstanding insurance claim.