MEDGULF H1 2024 profit drops 41% to SAR 59.9M; Q2 at SAR 33.6M

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) posted a 41% fall in its net earnings for H1 2024 to SAR 59.9 million, compared to SAR 100.8 million in H1 2023.

The company’s net investment results shrank 50.45% to SAR 32.7 million from SAR 66.1 million during the similar period of the previous year, due to losses in fair value equity investments, which followed the general trend of the market.

In addition, MEDGULF reported a 40.93% decline in the results of insurance services to SAR 13.5 million due to the more unfavorable performance of the health insurance line.

This was despite an increase in the health business’s revenues by 19.21%. On the other hand, revenues from motor insurance witnessed a significant decrease of 49.29%, while revenues from general property and casualty (P&C) insurance lines recorded a limited increase of 2.16%.

In the second quarter of 2024, the insurance services provider reported a net profit of SAR 33.61 million, 48% down from SAR 64.58 million in Q2 2023, mainly due to a decline in insurance service results that led to a loss of SAR 9.55 million against earnings of SAR 34.72 million a year earlier.

Sequentially, the insurer profit improved by 28% from SAR 26.26 million in Q1 2024.

Total shareholders’ equity, no minority interest, stood at SAR 977.28 million as of June 30, 2024, compared to SAR 807.49 million in the prior-year period.

Accumulated losses reached SAR 197.26 million by the end of the six-month period, accounting for 18.79% of the company’s capital.

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