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Earnings Report

Watania International Holding

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Watania International Holding reported weaker Q1 2026 performance as higher takaful service expenses, investment losses, and fair value losses on financial assets impacted profitability during the quarter. The Group operates across family and general takaful through its Watania Takaful subsidiaries.

The company continues operating as an investment holding company following the cancellation of its insurance license in 2023 and reorganization into a holding structure.

2. Financial Performance Snapshot

  • Takaful revenue: AED 202.8M

  • Net takaful income: AED 9.3M

  • Total investment & other loss: AED 9.3M

  • Loss before tax: AED 5.6M

  • Net loss after tax: AED 5.0M

  • Basic & diluted loss per share: AED 0.019

Compared to Q1 2025:

  • Takaful revenue increased from AED 184.3M to AED 202.8M

  • Net loss widened from AED 2.0M to AED 5.0M

3. Operational Highlights & Key Metrics

  • Total assets: AED 1.44B

  • Total equity: AED 258.1M

  • Cash & cash equivalents: AED 161.7M

  • Investment portfolio (FVTPL): AED 604.7M

  • Investment properties: AED 76.7M

  • Net takaful contract liabilities: AED 762.5M

Segment highlights:

  • Family and general takaful operations remained the core business contributors

  • Investment in mutual funds totaled AED 351.2M

  • Investment in debt securities reached AED 189.2M


4. Key Performance Drivers

  • Higher takaful service expenses impacted underwriting profitability

  • Fair value losses on financial assets negatively affected investment performance

  • Increased retakaful recoveries partially offset claims-related pressures

  • Stronger takaful revenue growth supported operational scale

  • Higher finance costs and administrative expenses impacted overall profitability

The Group recorded:

  • AED 7.8M fair value loss on unit-linked assets

  • AED 5.7M fair value loss on financial assets at FVTPL

5. Outlook & Forward Guidance

  • Continued focus on strengthening takaful operations and investment performance

  • Ongoing management of liquidity, solvency, and underwriting discipline

  • Management continues monitoring geopolitical uncertainty and market volatility across the region

  • The Group remains focused on long-term diversification across investment and takaful activities

  • Watania continues operating with strong liquidity and investment balances despite market pressures

6. 🧾 Investor Takeaway

Watania International Holding reported a wider Q1 2026 loss despite higher takaful revenue growth, as investment market volatility, fair value losses, and elevated takaful service expenses weighed on profitability during the quarter.