Al-Etihad Insurance Narrows Q1 Loss 70.75% Sequentially
Al-Etihad Cooperative Insurance posted a net loss of SAR 39.57 million in Q1 2026, a 70.75% improvement from Q4 2025 but a widening from Q1 2025. Insurance revenues grew 4.55% YoY but declined 6.78% QoQ.
Key Numbers
Al-Etihad Cooperative Insurance Co. (8170) announced its interim financial results for the three months ended March 31, 2026, reporting a net loss of SAR 39.57 million, compared to a loss of SAR 135.29 million in Q4 2025 (improvement of 70.75%) and a loss of SAR 11.92 million in Q1 2025 (widening).
Key Financial Results
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Insurance Revenues | SAR 301.44M | SAR 288.31M | +4.55% |
| Net Loss | -SAR 39.57M | -SAR 11.92M | Widened |
| Loss Per Share | -SAR 0.79 | -SAR 0.24 | Widened |
| Investment Income | SAR 9.43M | SAR 16.67M | -43.44% |
| Total Shareholders' Equity | SAR 410.02M | SAR 702.00M | -41.61% |
Highlights from the Statement
The company attributed the YoY increase in insurance revenues (+4.55%) to lower expected credit loss movements. However, the net loss widened due to insurance service losses of SAR 24.57 million (vs. profit of SAR 0.89 million in Q1 2025) and a 43.44% decline in investment income.
Sequentially, the loss improved 70.75% driven by lower insurance service expenses and higher investment income (SAR 9.43M vs. an investment loss of -SAR 1.00M in Q4 2025).
Accumulated losses reached SAR 201.637 million, representing 40.3% of paid-up capital (SAR 500 million). Since this exceeds 35%, procedures for listed companies with losses of 20% or more will be implemented.
Guidance
The company stated it is "currently implementing a comprehensive corrective plan to address its financial position and improve its operating results," including reviewing pricing efficiency, strengthening governance, optimizing operating costs, and diversifying the insurance portfolio. The Board previously recommended using statutory reserves to offset accumulated losses, pending General Assembly approval.
Impact on the Stock
No immediate stock reaction was reported. However, accumulated losses exceeding 35% of capital subject the company to stricter regulatory measures, which may pressure the stock in the near term.
What This Means for Investors
The significant sequential improvement in net loss is positive, but the YoY widening and high accumulated losses warrant caution. The success of the corrective plan in reducing insurance service losses and improving investment income will be key to restoring profitability.
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