Earnings Report
Orient Insurance
1. Company Overview & Earnings Context
Orient Insurance PJSC is a UAE-based insurance company established in 1980, with operations commencing in 1982. The company is listed on the Dubai Financial Market (DFM) and operates under the regulation of the Central Bank of the UAE.
The company is ultimately owned by Al-Futtaim Holding Limited. Its business includes general insurance and life insurance, supported by subsidiaries and branches across several markets, including Egypt, Sri Lanka, Turkey, Oman, Saudi Arabia and Bahrain.
During the first nine months of 2026, Orient Insurance reported higher insurance revenue, investment income and net profit compared with the corresponding period of 2025. However, the increase in insurance service expenses was substantial, meaning that revenue growth did not translate into equally strong improvement in the insurance service result.
2. Financial Performance Snapshot
Key financial results – 9M 2026
Insurance revenue: AED 8,047.83 million, up 16.7% from AED 6,895.02 million.
Insurance service expenses: AED 6,678.58 million, up 58.9%.
Net expenses from reinsurance contracts held: AED 946.44 million, compared with AED 2,274.53 million.
Insurance service result: AED 422.82 million, up 1.2%.
Net investment results: AED 520.26 million, up 13.8%.
Net insurance finance results: expense of AED 59.92 million, compared with AED 83.47 million.
Net insurance and investment results: AED 883.16 million, up 11.6%.
Other operating income: AED 49.90 million, compared with AED 29.83 million.
Other operating expenses: AED 98.35 million, compared with AED 78.40 million.
Profit before tax: AED 834.71 million, up 12.4%.
Tax expense: AED 107.93 million, compared with AED 84.44 million.
Net profit: AED 726.78 million, up 10.4% from AED 658.22 million.
Profit attributable to the parent: AED 713.61 million, up 10.6%.
Earnings per share: AED 142.72, compared with AED 129.03.
Underlying performance
Orient Insurance delivered double-digit growth in revenue and net profit. Investment results provided an important contribution to earnings. However, insurance service expenses increased considerably faster than insurance revenue, limiting the improvement in the insurance service result to only 1.2%.
Total comprehensive income declined to AED 804.86 million from AED 1,236.85 million, despite higher net profit. This was mainly associated with movements in fair-value-through-other-comprehensive-income investments and currency-related items.
3. Operational Highlights & Key Metrics
General insurance
General insurance net service result: AED 383.66 million, compared with AED 378.87 million.
Result from insurance contracts issued: AED 1,263.62 million, compared with AED 2,608.74 million.
Net reinsurance expenses: AED 879.95 million, compared with AED 2,229.87 million.
The general insurance business continued to generate the majority of the insurance service result. The reported figures also show a substantial change in the contribution from reinsurance contracts.
Life insurance
Life insurance net service result: AED 39.15 million, compared with AED 38.80 million.
Result from insurance contracts issued: AED 105.64 million, compared with AED 83.46 million.
Net reinsurance expenses: AED 66.48 million, compared with AED 44.67 million.
Life insurance recorded a modest improvement in its net service result.
Third-quarter performance
Insurance revenue: AED 2,829.91 million, up 16.7%.
Insurance service result: AED 154.52 million, up 12.7%.
Net investment result: AED 104.47 million, up 2.3%.
Net profit: AED 181.57 million, up 16.6%.
Profit attributable to parent: AED 179.40 million, up 18.5%.
Earnings per share: AED 35.88.
The third-quarter results showed stronger growth in net profit and insurance service result compared with the first-nine-month growth rates.
4. Key Performance Drivers
1. Growth in insurance revenue
Insurance revenue increased by 16.7%, supported by growth in the general and life insurance businesses. General insurance remained the main contributor to revenue.
2. Higher insurance service expenses
Insurance service expenses increased by 58.9%, significantly faster than revenue growth. This is an important area to monitor because it can put pressure on underwriting profitability.
3. Reinsurance contribution
Net expenses from reinsurance contracts held declined to AED 946.44 million from AED 2,274.53 million. This helped offset the increase in insurance service expenses.
4. Investment income growth
Net investment results increased by 13.8% to AED 520.26 million. Interest income, dividends and other investment income supported the overall earnings performance.
5. Higher operating expenses
Other operating expenses increased by 25.4% to AED 98.35 million. This was faster than revenue growth and should be monitored in future reporting periods.
5. Outlook & Forward Guidance
Balance sheet and financial position
Total assets: approximately AED 20.31 billion.
Total liabilities: approximately AED 13.85 billion.
Total equity: approximately AED 6.46 billion.
Total investments, including bank balances, were reported at approximately AED 12.70 billion.
Investment securities after expected credit loss adjustments: AED 6.15 billion.
Cash and cash equivalents: AED 732.67 million, compared with AED 712.64 million at year-end 2025.
Bank deposits maturing after three months: AED 5.52 billion.
Insurance contract liabilities: approximately AED 10.07 billion.
Reinsurance contract assets: approximately AED 7.15 billion, before considering reinsurance contract liabilities.
Cash flow performance
Net cash generated from operating activities: AED 722.92 million, compared with AED 665.05 million.
Net cash used in investing activities: AED 164.37 million.
Net cash used in financing activities: AED 503.74 million.
Closing cash and cash equivalents: AED 732.67 million.
Operating cash flow improved year-on-year, indicating stronger cash generation from operations. Financing cash outflows included shareholder distributions and other financing movements.
Dividend and capital position
The company paid a dividend of AED 500 million, equivalent to AED 100 per share, on 6 May 2026.
Reported equity was approximately AED 6.46 billion.
The solvency information disclosed in the company's regulatory filing showed basic own funds of approximately AED 3.50 billion against a Solvency Capital Requirement (SCR) of approximately AED 1.73 billion.
This represented basic own funds of around 2.0 times the SCR. The solvency figures were disclosed as unaudited/unreviewed.
Business outlook
Orient Insurance does not have a conventional industrial order backlog. Its future business visibility is instead supported by policy renewals, recurring insurance premiums, customer relationships and investment income.
Management has highlighted continued investment in technology, digital capabilities, operational efficiency and customer experience. However, the interim results do not provide a specific quantified earnings forecast or formal forward guidance.
Accounting and reporting context
The financial statements cover the nine months ended 30 September 2026 and are prepared under IAS 34 interim financial reporting requirements. They are interim financial statements reviewed under ISRE 2410, rather than a full annual audit. The statements were approved by the Board on 30 October 2026.
6. Investor Takeaway
Orient Insurance delivered a positive overall financial performance during 9M 2026, with insurance revenue increasing by 16.7% and net profit growing by 10.4%. Investment income and the lower net expense from reinsurance contracts supported earnings growth.
However, the increase in insurance service expenses remains an important concern. Although revenue expanded strongly, the insurance service result increased by only 1.2%, indicating pressure on the underlying insurance operating performance.
The company's balance sheet remains substantial, supported by AED 6.46 billion in equity, significant investment holdings and positive operating cash flow. Its reported solvency position also indicates a meaningful capital buffer, although the disclosed solvency figures were not audited or reviewed.
Key points investors should monitor:
Whether insurance service expenses begin to grow more slowly than insurance revenue.
Whether general insurance profitability improves.
Whether investment income remains strong.
Whether operating expenses remain under control.
Whether operating cash flow continues to support dividends and capital requirements.
Whether the company maintains its solvency strength.
Overall view: Orient Insurance delivered solid revenue and net profit growth in 9M 2026, supported by investment income and reinsurance movements. The main issue to monitor is the sharp increase in insurance service expenses, which limited growth in the insurance service result. The company has a strong reported capital base, but sustained underwriting performance will be important for the quality of future earnings.
