Salama Cooperative Insurance Co. announces its Interim Financial Results for the period ending on 2026-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Insurance Revenues	161,377	131,883	22.363	149,034	8.282
Result of Insurance Services	8,315	-33,369	-	-23,172	-
Net Profit (Loss) of The Insurance Results	-3,094	-35,651	-91.321	-42,424	-92.706
Net Profit (Loss) of The Investment Results	6,526	6,941	-5.978	7,332	-10.992
Net Insurance Financing Expenses	-806	-1,282	-37.129	-534	50.936
Net Profit (Loss), After Zakat, Attributable To Shareholders	-3,324	-35,421	-90.615	-42,984	-92.266
Total Comprehensive Income Attributable to Shareholders of the Issuer	-3,324	-32,913	-89.9	-34,304	-90.31
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Shareholders Equity (after Deducting Minority Equity)	266,572	317,359	-16.003
Profit (Loss) per Share	-0.11	-1.18
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-104,546	34.85
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the revenues during the current quarter compared to the same quarter of last year is	Insurance revenues for the current quarter reached SAR 161.38 million, compared to SAR 131.88 million for the same quarter of the last year, representing an increase of 22.36%. as a result of the decrease in gross unearned insurance premiums reserve, particularly in motor and health insurance segments.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Net loss before Zakat attributable to shareholders of the Issuer for the current quarter decreased to SAR (2.82) million, compared to SAR (35.64) million for the same quarter of the last year, representing a decrease of 92.08%.

Net loss after Zakat attributable to shareholders of the Issuer for the current quarter decreased to SAR (3.32) million, compared to SAR (35.42) million for the same quarter of the last year, representing a decrease of 90.62%. This decrease is primarily due to the following:

- A decrease in net loss of the insurance results for the current quarter to SAR (3.09) million, compared to SAR (35.65) million for the same quarter of the last year, representing a decrease of 91.32%, due to the increase in insurance revenues for the current quarter by 22.36% compared to the same quarter of the last year.

- A decrease in net technical reserves for the current quarter compared to the same quarter of the last year, as a result of the company's continues commitment to maintaining quality and technical standards in the underwriting process.

Gross Written Premiums (GWP) for the current quarter amounted to SAR 161.93 million, compared to SAR 164.97 million for the same quarter of the last year, representing a decrease of 1.84%.The reason of the increase (decrease) in the revenues during the current quarter compared to the previous quarter is Insurance revenues for the current quarter reached SAR 161.38 million, compared to SAR 149.04 million for the previous quarter, representing an increase of 8.28%. s a result of the decrease in gross unearned insurance premiums reserve, particularly in motor and health insurance segments.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous quarter is Net loss before Zakat attributable to shareholders of the Issuer for the current quarter decreased to SAR (2.82) million, compared to SAR (42.75) million for the previous quarter, representing a decrease of 93.39%.

Net loss after Zakat attributable to shareholders of the Issuer for the current quarter decreased to SAR (3.32) million, compared to SAR (42.98) million for the previous quarter, representing a decrease of 92.27%. This decrease is primarily due to the following:

- A decrease in net loss of the insurance results for the current quarter to SAR (3.09) million, compared to SAR (42.42) million for the previous quarter, representing a decrease of 92.71%, due to the increase in insurance revenues for the current quarter by 8.28% compared to the previous quarter.

- A decrease in net technical reserves for the current quarter compared to the previous quarter, as a result of the company's continues commitment to maintaining quality and technical standards in the underwriting process.

Gross Written Premiums (GWP) for the current quarter amounted to SAR 161.93 million, compared to SAR 217.59 million for the previous quarter, representing a decrease of 25.58%.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) NoneReclassification of Comparison Items During the three-month period ended 31 March 2026, management of the Company reassessed the presentation of certain transactions and concluded that a reclassification is required to comply with the requirements of International Financial Reporting Standards that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”). Accordingly, management has restated the comparative period interim condensed statement of cash flows information for (Three Months) ended 31 March 2025. As in accordance with International Accounting Standard 7 - Statement of Cash Flows (“IAS 7”), as endorsed in the Kingdom of Saudi Arabia, all cash received from commission income on financial assets not measured at FVTPL should be presented separately within operating activities in the statement of cash flows and commission income earned from such financial assets should be included as non cash transaction adjustment within operating activities . Previously, only commission income received from Sukuks which are measured at amortised cost was separately disclosed in investing activities, and commission income earned and received on other financial assets not measured at FVTPL were omitted. Management has corrected this error by separately presenting all commission income earned and received in operating activities which includes commission income received from Sukuks to ensure compliance with IAS 7.

The reclassification had no impact on the net decrease in cash and cash equivalents in the interim condensed statement of cash flows, interim condensed statement of financial position, interim condensed statement of comprehensive income, or interim condensed statement of changes in equity for the comparative period (Three Months) ended 31 March 2025.Additional Information Loss per share for the current quarter amounted to SAR (0.11) per share, compared to loss per share of SAR (1.18) per share for the same quarter of the previous year. This was calculated by dividing the net loss attributable to shareholders of the Issuer after Zakat of SAR (3.32) million by the weighted average number of outstanding common shares (30 million shares) for the current quarter, and by dividing the net loss attributable to shareholders of the Issuer after Zakat of SAR (35.42) million by the weighted average number of outstanding common shares (30 million shares) for the same quarter of the previous year.

Total shareholders' equity (no minority interests) at the end of the current quarter amounted to SAR 266.25 million, compared to SAR 316.63 million at the end of the same quarter of the previous year, representing a decrease of 15.91%.

Total equity at the end of the current quarter amounted to SAR 266.57 million, compared to SAR 317.36 million at the end of the same quarter of the previous year, representing a decrease of 16%.

Total comprehensive loss attributable to shareholders of the Issuer at the end of the current quarter amounted to SAR (3.32) million, compared to the total comprehensive loss attributable to shareholders of the Issuer amounted to SAR (32.91) million at the end of the same quarter of the previous year, representing a decrease of 89.90%.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.