Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (Medgulf) has reported net income after zakat amount of SAR41.06m in 2025, compared to SAR101.99m for 2024, plummeting by 59.7%, according to financial results released by the company on the Saudi Exchange (Tadawul).
Medgulf said that the profit fall was due to the following main reasons:
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Net investment results for 2025 amounted to SAR39.14m, compared to SAR64.81m during the previous year, a decrease of 39.6% due to the decrease in the contribution from the equity investments measured at fair value through profit and loss.
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Net insurance financing expense for 2025 amounted to SAR33.48m, compared to SAR4.59m for 2024, due to the increased volume of paid claims and a reduction in the discount rate.
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A one-off non-insurance revenue item (SAR22m), namely, the disposal of land, which contributed to the bottom line in 2024.
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Higher non-attributable expenses (e.g., EOS) in 2025.
As for the top line, insurance revenues reached SAR4,320m in 2025 compared to SAR3,552m in 2024, an increase of 21.64% driven mainly by growth in the health and motor branches.
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Metric
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2025
|
2024
|
% Change
|
|
Insurance Revenue
|
4,320,236
|
3,551,790
|
21.6
|
|
Result of Insurance Services
|
289,298
|
380,889
|
-24.1
|
|
Net Insurance Results
|
54,777
|
25,394
|
115.7
|
|
Investment Results
|
39,137
|
64,809
|
-39.6
|
|
Net Insurance Financing Expenses
|
-33,482
|
-4,589
|
629.6
|
|
Net Profit (Loss), After Zakat, Attributable To Shareholders
|
41,063
|
101,994
|
-59.7
|
|
Total Comprehensive Income Attributable to Shareholders
|
60,557
|
111,224
|
-45.6
|
|
Total Shareholders’ Equity (after Deducting Minority Equity) at 31 December
|
1,592,869
|
1,028,644
|
54.9
|
|
All figures are in SAR‘000 (unless otherwise indicated)
Source: Medgulf via Tadawul
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The insurer’s accumulated losses as of 31 December 2025 amounted to 8.26% of the subscribed capital, an improvement of over 6.51ppt from 14.77% recorded as of 31 December 2024.
Medgulf completed the acquisition of Buruj Cooperative Insurance Company in 2025, through the issuance of 33,157,894 new Medgulf ordinary shares, with a nominal value of SAR10 each, to Buruj’s shareholders. The swap ratio was 1.105263 shares in Medgulf for each share in Buruj.
Medgulf accounted for the acquisition based on fair values of the acquired assets and assumed liabilities as at the acquisition date, which was 30 October 2025.