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Earnings Report

Orient Takaful

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Orient Takaful P.J.S.C. reported a strong Q1 2026 performance, supported by higher takaful revenues, improved underwriting performance, and continued growth across its insurance operations.

The company continued maintaining a conservative investment strategy with all investments held in short-term Wakala deposits.

2. Financial Performance Snapshot

  • Takaful contract revenue: AED 366.3M (+26% YoY)

  • Takaful service result: AED 80.9M (+28% YoY)

  • Profit before tax: AED 26.7M (+74% YoY)

  • Net profit after tax: AED 22.7M (+70% YoY)

  • Total comprehensive income: AED 22.7M

  • Earnings per share (EPS): AED 11.35 (vs AED 6.69 YoY)

3. Operational Highlights & Key Metrics

  • Takaful service expenses: AED 284.3M

  • Net expense from retakaful contracts held: AED 1.2M

  • Wakala fees income from policyholders: AED 173.3M

  • Profit from Wakala deposits: AED 8.1M

  • Balance sheet & liquidity:

    • Total assets: AED 1.90B

    • Total shareholders’ equity: AED 449.3M

    • Cash & equivalents: AED 109.8M

    • Wakala deposits: AED 756.2M

  • Capital & reserves:

    • Retakaful risk reserve: AED 17.8M

    • Retained earnings: AED 205.8M

  • Takaful contract liabilities: AED 1.29B

  • Retakaful contract assets: AED 904.2M

4. Key Performance Drivers

  • Strong growth in takaful contract revenue across insurance lines

  • Improved takaful service performance and underwriting profitability

  • Higher Wakala fee income supporting earnings growth

  • Stable investment income from Wakala deposits

  • Strong retakaful coverage helping mitigate claim volatility and risk exposure

5. Outlook & Forward Guidance

  • Continued focus on:

    • Expanding takaful operations across core insurance segments

    • Maintaining underwriting discipline and profitability

    • Preserving liquidity and capital strength

    • Conservative investment allocation through short-term Wakala deposits

  • Management highlighted that:

    • Recent geopolitical events and heavy rainfall claims had no material impact on financial performance due to strong reinsurance protection

    • The company remains well-capitalized and compliant with CBUAE solvency requirements

6. 🧾 Investor Takeaway

Orient Takaful delivered a strong Q1 2026 with higher revenues, improved profitability, and solid underwriting performance, supported by strong retakaful protection, stable investment income, and a well-capitalized balance sheet.