Saudi Enaya Posts 37.8M SAR Nine-Month Loss

Riyadh, Saudi Arabia — Saudi Enaya Cooperative Insurance has reported a nine-month net loss of 37.834 million SAR, marking a significant 39.242 million SAR decline compared to the same period last year. The decline can be attributed to soaring claims, expanding technical reserves, and deferred premium revenue. External auditors have cautioned of substantial uncertainty surrounding the company's ability to remain operational, citing accumulated losses of 113.12 million SAR, accounting for 49.18% of the company's share capital. Regulatory and solvency challenges are also looming over the firm.

In the recent quarters, Saudi Enaya experienced a decline in net income attributable to shareholders, from a profit of 727,000 SAR in Q3 2025 to a loss of 12.823 million SAR in Q3 2026. However, a sequential improvement in Q3 2026 showed a narrowing of the loss by 48.8%. Insurance revenues rose by 28.16% from Q2 to Q3, driven by the release of unearned premiums.

Investment income also saw a 32.23% increase to 2.556 million SAR in Q3. Despite this positive momentum, the year-on-year comparison remains bleak, with insurance service expenses surging by 98.64% and overall revenues lagging behind the cost increase.

The company's revenue declined by 9.52% to 126.045 million SAR, while the gross written premiums surged by 122.06% to 181.724 million SAR, indicating genuine business expansion. Nevertheless, the revenue growth did not compensate for the skyrocketing cost, with insurance service expenses rising by 22.64% to 160.286 million SAR. Investment results declined by 9.05% to 6.502 million SAR, and the operating expenses fell by 27.65% to 8.914 million SAR.

The accumulated losses of the company have reached nearly half of its share capital, and auditors have issued an "emphasis-of-matter" paragraph warning of the potential for the firm's demise. The Insurance Authority extended the company's operational time for six months, giving it a chance to execute a capital restoration plan involving a capital reduction and a proposed rights issue, both subject to regulatory approval.

Until these measures are cleared and the company proves its ability to control expenses and capitalize on growth, investors should be cautious, considering the potential dilution of existing shareholders and the uncertainties surrounding the company's survival.