Dubai National Insurance & Reinsurance

1. Company Overview & Earnings Context

Dubai National Insurance & Reinsurance Co. (P.S.C.) reported stronger Q1 2026 profitability supported by improved insurance service performance, higher investment income contribution, and stronger underwriting results. The company operates across general insurance and reinsurance activities in the UAE.

Management continued focusing on underwriting discipline, claims management, and investment portfolio optimization during the quarter while monitoring regional geopolitical developments and insurance market conditions.

2. Financial Performance Snapshot

• Insurance revenue: AED 166.3M

• Insurance service result: AED 4.90M

• Net insurance financial result: AED 2.58M

• Investment income: AED 25.7M

• Net insurance & investment result: AED 33.1M

• Profit before tax: AED 31.1M

• Net profit after tax: AED 30.2M

• Basic & diluted EPS: AED 0.26

Compared to Q1 2025:

• Insurance revenue remained stable at AED 166.3M

• Insurance service result improved significantly from a loss of AED 318K to a profit of AED 4.90M

• Net profit increased from AED 25.1M to AED 30.2M

Additional highlights:

• Investment income remained strong at AED 25.7M

• Net insurance finance result remained positive during the quarter

3. Operational Highlights & Key Metrics

• Total assets: AED 1.59B

• Total equity: AED 958.2M

• Cash & cash equivalents: AED 231.3M

• Cash & bank balances: AED 336.2M

• Quoted equity investments at FVTOCI: AED 568.0M

• Debt securities at FVTOCI: AED 38.8M

• Insurance contract liabilities: AED 582.4M

• Reinsurance contract assets: AED 374.1M

Additional highlights:

• Solvency Capital Requirement surplus stood at AED 363.4M

• Minimum Capital Requirement surplus reached AED 383.6M

• Operating cash flow remained negative during the quarter due to working capital movements

• Investment portfolio remained heavily weighted toward quoted equities

4. Key Performance Drivers

• Improved underwriting performance significantly supported profitability growth

• Higher insurance service result positively impacted operational earnings

• Strong dividend and investment income continued supporting bottom-line profitability

• Positive reinsurance finance income improved overall insurance financial result

• Claims reserve adjustments and improved claims experience supported underwriting performance

The company also recorded:

• AED 20.4M dividend income from financial investments

• AED 2.69M net income from investment properties

• AED 7.17M interest accrued on reinsurance contracts held

• AED 198.7M recovered from reinsurers during the quarter relating to revised claims estimates

5. Outlook & Forward Guidance

• Continued focus on underwriting profitability and disciplined risk management

• Management remains focused on maintaining strong solvency and liquidity levels

• The company continues monitoring regional geopolitical developments and related market volatility

• DNIR remains focused on long-term investment income generation and stable shareholder returns

• Proposed dividend distribution of AED 17.3M (AED 0.15 per share) was approved during April 2026

Management also disclosed that geopolitical tensions and military escalations in parts of the Middle East increased market uncertainty during the quarter, although no material disruption to operations was identified.

6. 🧾 Investor Takeaway

DNIR delivered stronger Q1 2026 profitability supported by improved underwriting performance, stable insurance revenue, strong investment income contribution, and healthy solvency levels, while continuing to maintain a large quoted equity investment portfolio and disciplined risk management approach.