“United Insurance” incur the net loss of 81.5 million riyals in the second quarter

The United Cooperative Insurance Company recorded a net loss of 81.5 million riyals during the second quarter of this year, compared to profits of 296 thousand riyals in the same quarter of the previous year.
The total losses of the company during the first half of this year amounted to approximately 105 million riyals, compared to profits amounting to 5.3 million riyals during the same period of the previous year 2024.
In a statement to “Tadawal Saudi Arabia”, the company attributed the reasons for the loss during the second quarter of 2025 to the increase in insurance services expenses by 30%, noting that the total insurance premiums of the selection were increased to 263.5 million riyals, compared to 243.4 million riyals for the same quarter of the previous year, an increase of 12%.
The company indicated that the net loss after Zakat during the first six months of 2025 amounted to 104.8 million riyals, compared to a net profit of 5.3 million riyals for the same period of 2024, and this is mainly due to the increase in insurance services expenses by 17%, and the rise in net reinsurance contracts by 28%.
The total insurance premiums, which are completed during the current period, reached 494.4 million riyals, compared to 626.2 million riyals for the same period of the previous year, a decrease of 21%.
According to the company’s external auditor’s report, the accumulated losses of the company amounted to 300.5 million riyals until June 30, 2025, and moreover, the company’s financial solvency margin is 6% as on June 30, 2025, which is less than the minimum requirements of the financial solvency stipulated by the Insurance Authority.
The United Insurance added: “The company depends on improving its financial performance and meeting the minimum requirements for the financial solvency margin on the positive result and achieving measures and procedures planned by the company.
These events and circumstances, along with other things, indicate that there is a fundamental lack of certainty that may raise fundamental doubts about the company’s ability to continue.