Hayah Insurance Company

1. Company Overview & Earnings Context

HAYAH Insurance Company P.J.S.C. is an ADX-listed Abu Dhabi-based insurance company focused primarily on health and life insurance solutions. The company operates across medical insurance, life insurance and investment activities.

HAYAH delivered a turnaround in H1 2026, moving from a net loss of AED 3.02 million in H1 2025 to a net profit of AED 0.31 million. Insurance revenue also increased significantly to AED 91.27 million from AED 54.99 million.

2. Financial Performance Snapshot

• Insurance Revenue: AED 91.27 Million (+66.0% YoY)

• Insurance Service Result Before Reinsurance: AED 22.91 Million, vs. AED 8.79M loss

• Net Insurance Service Result: AED 0.90 Million, vs. AED 1.46M loss

• Investment & Other Income: AED 9.10 Million (+120.0% YoY)

• Total Income: AED 9.74 Million, vs. AED 2.55M

• Profit Before Tax: AED 0.35 Million, vs. AED 2.71M loss

• Net Profit: AED 0.31 million, vs. AED 3.02M loss

• EPS: AED 0.002, vs. AED 0.015 loss per share

The headline improvement was the return to profitability, supported by higher insurance revenue, a positive insurance service result and stronger investment income.

3. Insurance & Segment Performance

Insurance revenue increased approximately 66% YoY to AED 91.27 million, with both medical and life insurance contributing significantly.

Medical insurance generated AED 45.87 million of revenue, up sharply from AED 13.79 million in H1 2025. Life insurance generated AED 45.40 million, compared with AED 41.20 million.

However, profitability differed substantially between the segments. Medical recorded an AED 3.57 million insurance service loss, while life generated a positive AED 4.47 million insurance service result. This resulted in an overall insurance service profit of AED 0.90 million.

The company also continued expanding its savings products. Investment contract assets and liabilities increased to AED 88.67 million from AED 67.54 million, driven by growth in Employee Secure Saver and Smart Saver products. These products generated AED 3.75 million of management fees during H1 2026.

4. Key Performance Drivers

The biggest positive driver was the improvement in core insurance performance. The insurance service result before reinsurance moved from an AED 8.79 million loss to a AED 22.91 million profit, reflecting substantially higher insurance revenue and improved underlying underwriting results.

Reinsurance remained a significant cost, with net expense from reinsurance contracts reaching AED 22.01 million, compared with net income of AED 7.33 million in H1 2025. This absorbed most of the improvement in the pre-reinsurance result.

Investment and other income provided another major boost, more than doubling to AED 9.10 million from AED 4.13 million. However, other operating expenses also increased sharply to AED 9.39 million from AED 5.26 million.

Management stated that H1 profit was attributable mainly to the performance of its Group and Individual Savings business, while it continues to implement measures aimed at improving underwriting and profitability.

5. Balance Sheet, Investments & Cash Flow

HAYAH ended June 2026 with:

• Total Assets: AED 316.70 Million

• Total Equity: AED 122.89 Million

• Total Liabilities: AED 193.81 Million

• Cash & Cash Equivalents: AED 46.96 Million

• Insurance Contract Liabilities: AED 98.15 Million

• Reinsurance Contract Assets: AED 68.45 Million

• Investment Contract Assets: AED 88.67 Million

• Investment Contract Liabilities: AED 88.67 Million

Total assets increased from AED 279.75 million at the end of 2025, while cash and cash equivalents increased substantially from AED 34.43 million to AED 46.96 million.

Operating cash flow remained positive but declined sharply to AED 1.13 million from AED 23.29 million in H1 2025. Investing activities generated AED 11.68 million, helping cash increase by AED 12.53 million during the first half.

6. Investor Takeaway

HAYAH's H1 2026 results showed a clear improvement in operating momentum, with insurance revenue increasing 66% to AED 91.27 million and the company returning to a small net profit of AED 0.31 million after recording a loss a year earlier.

Life insurance remained profitable, while the rapid expansion of medical revenue was offset by a negative medical insurance service result. Reinsurance costs were also substantial, absorbing most of the AED 22.91 million pre-reinsurance insurance service profit. This makes medical underwriting and reinsurance performance important areas to monitor.

The company's accumulated losses remain significant at AED 77.51 million, equivalent to 38.8% of share capital. Management continues to implement a corrective action plan that includes capital-strengthening initiatives, medical portfolio repricing, underwriting improvements and stronger monitoring and governance.

At the same time, HAYAH stated that it remained compliant with applicable solvency regulations, and the independent auditor issued an unmodified review conclusion. Going into H2 2026, the key areas to monitor are insurance revenue growth, medical underwriting profitability, reinsurance costs, savings-product growth, operating cash flow, accumulated losses and progress on the capital-strengthening plan.