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Gulf Union Insurance and Reinsurance Company (GUIRCO) announced its financial results for the six-month period ended June 30, 2026, reporting a net profit attributable to shareholders of BD586,761, compared with BD899,489 recorded during the corresponding period of 2025.
The decrease in net profit was primarily attributable to a higher level of claims incurred, particularly within the motor insurance portfolio, which continued to experience increased claims severity namely the increase in the spare parts costs as compared with the same period of the previous year.
The company generated insurance revenue of BD4,846,075 during the first half of 2026, representing an increase of approximately six per cent compared with BD4,571,453 in the same period of the previous year.
Shareholders’ equity stood at BD5,877,885 as of June 30, 2026, compared with BD5,291,124 at December 31, 2025, driven primarily by the profit generated during the period and the reduction in accumulated losses.
Accumulated losses decreased to BD646,730 from BD1,174,815 at the end of 2025.
The company’s insurance operations generated a net result of BD125,717, while investment activities continued to provide a stable source of earnings, contributing BD362,352 in net investment income during the period.
Other income amounted to BD186,925, supporting overall profitability.
Commenting on the results, GUIRCO chairman Abdulaziz Alturki said that the company remains focused on enhancing underwriting discipline, improving operational efficiencies and strengthening its investment portfolio to support sustainable growth and long-term value creation for shareholders.
The board also reaffirmed its commitment to maintaining strong capital adequacy and delivering high-quality insurance services to its customers.
The company’s chief executive officer Waleed Mahmood added that despite the pressure on profitability arising from claims activity, the company maintained stable operations during the current challenges and continued to focus on prudent underwriting practices, effective risk management, and disciplined cost controls.
The management remains committed to strengthening the overall quality of the insurance portfolio and pursuing sustainable growth opportunities while maintaining a strong financial foundation.
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