United Fidelity Insurance Company

1. Company Overview & Earnings Context

United Fidelity Insurance Company P.S.C. reported significantly improved Q1 2026 financial performance as losses narrowed sharply supported by stronger reinsurance recovery, higher insurance revenue, and capital injection during the quarter. The company operates across commercial, consumer, and employee benefits insurance segments in the UAE.

Management highlighted that disciplined underwriting, optimized reinsurance arrangements, and operational efficiency initiatives supported the improvement in quarterly performance.

2. Financial Performance Snapshot

• Insurance revenue: AED 176.4M

• Insurance service result: AED (4.9M)

• Investment income: AED 3.7M

• Loss before tax: AED (1.8M)

• Net loss after tax: AED (1.25M)

• Basic & diluted loss per share: AED (0.007)

Compared to Q1 2025:

• Insurance revenue increased from AED 134.0M to AED 176.4M

• Insurance service loss improved from AED 17.6M to AED 4.9M

• Net loss improved from AED 11.3M to AED 1.25M

Additional highlights:

• Net recovery from reinsurance contracts reached AED 64.3M

• Insurance revenue increased 32% YoY

• Net loss improved by 89% YoY

3. Operational Highlights & Key Metrics

• Total assets: AED 813.4M

• Total equity: AED 124.3M

• Cash & cash equivalents: AED 84.1M

• Bank balances & cash: AED 126.0M

• Investments at FVTPL: AED 119.4M

• Investments at FVOCI: AED 117.1M

• Insurance contract liabilities: AED 583.8M

• Reinsurance contract assets: AED 361.3M

• Bank borrowings: AED 45.2M

Segment revenue contribution:

• Consumer insurance: AED 85.2M

• Employee benefits: AED 61.3M

• Commercial insurance: AED 29.9M

Additional highlights:

• AED 30M capital injection completed during Q1 2026

• Share capital increased to AED 190M

• Operating cash flow turned positive at AED 14.7M

4. Key Performance Drivers

• Strong improvement in reinsurance recovery significantly reduced insurance losses

• Higher insurance revenue across core business segments supported topline growth

• Better underwriting discipline and optimized reinsurance arrangements improved results

• Capital injection strengthened liquidity and capital position

• Improved operational efficiency contributed to narrowing losses

The company also recorded:

• AED 119.5M recoverable from reinsurers for incurred claims

• AED 4.99M dividend income from investments

• AED 1.43M interest income from bonds

• AED 14.7M positive operating cash flow during the quarter

5. Outlook & Forward Guidance

• Continued focus on disciplined underwriting and profitable growth segments

• Ongoing optimization of reinsurance arrangements and operational efficiency

• Management continues implementing its solvency recovery plan with additional capital support initiatives

• The company remains focused on strengthening financial position and long-term shareholder value creation

• United Fidelity continues monitoring regional geopolitical and regulatory developments affecting the insurance sector

Management also disclosed that the company continues operating under solvency deficit conditions and remains dependent on effective implementation of the solvency recovery plan and capital injection initiatives.

6. 🧾 Investor Takeaway

United Fidelity Insurance significantly reduced its Q1 2026 losses supported by strong reinsurance recovery, higher insurance revenue, capital injection, and improved underwriting discipline, although solvency recovery and capital strengthening remain key priorities for the company.