Union Insurance CompanyADX: UNION

Financial Results for the Period Ended March 31,2026 published on 14/05/2026

May 14, 2026 at 10:36 AM UTC · Issued by Union Insurance Company

Union Insurance Company P.J.S.C. Condensed interim financial information (Unaudited) For the three-month period ended 31 March 2026

Union Insurance Company P.J.S.C. Condensed interim financial information (Unaudited) For the period ended 31 March 2026 Table of contents
Review report of the independent auditor	Page 1
Condensed interim statement of financial position	2
Condensed interim statement of profit or loss	3
Condensed interim statement of other comprehensive income	4
Condensed interim statement of changes in equity	5
Condensed interim statement of cash flows	6
Notes to the condensed interim financial information	7

Review Report of the Independent Auditor To the Shareholders of Union Insurance Company P.J.S.C.

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Union Insurance Company P.J.S.C. (the "Company") as at 31 March 2026, and the related condensed interim statement of profit or loss, condensed interim statement of other comprehensive income, condensed interim statement of changes in equity and condensed interim cash flows for the three-month period then ended and material accounting policy information and other related explanatory notes. Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with International Accounting Standard 34 ("IAS 34") 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this condensed interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting".

GRANT THORNTON UAE

Dr. Osama El-Bakry Registration No: 935

Abu Dhabi, United Arab Emirates

13 May 2026

Union Insurance Company P.J.S.C. Condensed interim financial information (Uiiaudited)
Condensed interim statement of financial position
As at 31 March 2026
	3lMazch	31 December
Notes	2026	2025
	AED'000	AED'000
	(Unaudited)	(Audited)
Assets
Property and equipment	3,211	3,330
Intangible assets	1,075	1,394
Right-of-use-assets	2,951	3,297
Unit-linked assets 4.3	312,680	341,261
Investment securities 4	58,513	57,374
Statutory deposit 5	10,000	10,000
Reinsurance contract assets 5	549,339	390,092
Other receivables 7	55,414	54,963
Bank deposits with original maturities of
more than three months 8.2	443,546	439,045
Cash and cash equivalents 8.1	51,871	30,853
Total assets	1,488,600	1,331,609
Equity and liabilities
Equity
Share capital	250,000	230,000
Statutory reserve 101	6,493	6,493
Reinsurance reserve 10.2	H,555	t2,915
Fair value reserve 105	166	166
Retained earnings	M,989	39,739
Total equity	294,203	289,313
Liabilities
Provision for employees' end of service benefits	9,022	8,731
Insurance contract liabilities	786,189	615,342
Reinsurance contact liabilities	1,900	1,791
Other payables	114,107	110,250
Unit-linked liabilities 4.4	283,179	306,182
Total liabilities	1,194,397	t,042,296
Total equity and liabiEties	1,488,600	1,331,609

To the best of our knowledge, the condensed interim financial information present fairly in all matefial respects, the Enancial condition, results of operation and cash flows of the Company as of, and for the three-mon iiod ended 31 March 2026. This financial information was approved for issue by the Board of Directors an siyned on their behalf by:

Ramez Avon Zaid

Chief Executive Officer

The notes from 1 to 23 fortn an integral pan of this condensed interim financial information.

Condensed interim statement of profit or loss For the period ended 31 March 2026

Three-month period ended 31 March

	Notes	2026 AED'000 (Unaudited)	2025 AED'000 (Unaudited)
Insurance revenue	12	166,915	144,298
Insurance service expenses	13	(267,386)	(85,055)
Insurance service result before reinsurance contracts held		(100,471)	59,243
Allocation of reinsurance premiums Amounts recoverable from reinsurance for incurred claims		(76,670) 195,893	(85,517) 39,523
Net income / (expense) from reinsurance contracts held		119,223	(45,994)
Insurance service result		18,752	13,249
Interest revenue calculated using the effective interest method		4,507	5,177
Net fair value loss on
financial assets at FVTPL		(263)	(1,381)
Other investment income		124	905
Total investment income		4,368	4,701
Insurance finance expense for insurance contracts issued	14	(12,814)	(11,767)
Reinsurance finance income for reinsurance contracts held	14	8,080	9,067
Net insurance financial result		(4,734)	(2,700)
Net insurance and investment results		18,386	15,250
Board remuneration		(2,360)	(40)
Other operating expenses		(580)	(1,014)
Profit for the period before tax		15,446	14,196
Income tax expense	16	(1,356)	(1,146)
Profit for the period after tax		14,090	13,050
			Restated
Basic and diluted earnings per share	15	0.056	0.052

Condensed interim statement of other comprehensive income For the period ended 31 March 2026

Three-month period ended 31 March

Notes 2026 2025

AED'000 AED'000

(Unaudited) (Unaudited)

Profit for the period after tax 14,090 13,050

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss:

Net change in fair value of equity

investments designated at FVTOCI - -

Total other comprehensive

income for the period - -

Total comprehensive

income for the period 14,090 13,050

Union Insurance Company P.J.S.C. Condensed interim financial information (Unaudited) Condensed interim statement of changes in equity For the period ended 31 March 2026

	Share capital	Statutory reserve	Special reserve	Reinsurance reserve	Fair value reserve	Retained earnings	Total equity
	AED'000	AED'000	AED'000	AED'000	AED'000	AED'000	AED'000
Balance as at 1 January 2025 (Audited)	330,939	21,851	21,851	11,274	168	(142,745)	243,338
Profit for the period after tax	-	-	-	-	-	13,050	13,050
Other comprehensive income	-	-	-	-	-	-	-
Total comprehensive income for the period	-	-	-	-	-	13,050	13,050
Transfer to reinsurance reserve	-	-	-	515	-	(515)	-
Balance at 31 March 2025 (Unaudited)	330,939	21,851	21,851	11,789	168	(130,210)	256,388
Balance at 1 January 2026 (Audited)	230,000	6,493	-	12,915	166	39,739	289,313
Profit for the period after tax	-	-	-	-	-	14,090	14,090
Other comprehensive income	-	-	-	-	-	-	-
Total comprehensive income for the period	-	-	-	-	-	14,090	14,090
Transfer to reinsurance reserve	-	-	-	640	-	(640)	-
Cash dividends paid	-	-	-	-	-	(9,200)	(9,200)
Bonus shares issued during the period	20,000	-	-	-	-	(20,000)	-
Balance at 31 March 2026 (Unaudited)	250,000	6,493	-	13,555	166	23,989	294,203

Condensed interim statement of cash flows For the period ended 31 March 2026
	Notes	Three-month period ended 31 March 2026 AED'000 (Unaudited)	Three-month period ended 31 March 2025 AED'000 (Unaudited)
Cash flows from operating activities Profit for the period before tax		15,446	14,196
Adjustments for: Depreciation and amortisation		1,503	1,213
Loss on disposal of investments at FVTPL		-	-
Unrealised loss/(gain) on investments at FVTPL		263	1,381
Charge / (reversal) of provision for expected credit losses		1,250	(1,912)
Interest income		(4,507)	(5,177)
Dividend income		(315)	(1,091)
Interest on lease liabilities		169	10
Provision for employees' end of service benefits		963	185
Change in working capital		14,772	8,805
Reinsurance contract assets - net		(159,138)	18,876
Other receivables		(451)	(13,484)
Insurance contract liabilities - net		169,597	(12,857)
Other payables		1,955	(1,146)
Unit linked assets		28,581	20,515
Unit linked liabilities		(23,003)	(12,730)
Cash from operations		32,313	7,979
Employees' end of service indemnity paid		(673)	(2,191)
Net cash generated from operating activities		31,640	5,788
Cash flows from investing activities Purchase of property and equipment and intangibles		(28)	(22)

Purchase of investments held at FVTPL (excluding unit

linked assets) (1,402) -

Proceeds from disposal of investments held at FVTPL

(excluding unit linked assets) - 52

Interest received		101	5,177
Dividends received Bank deposits with original maturities of	more than	315	1,091
three months			(94)	(5,112)
Net cash used in investing activities			(1,108)	1,186
Cash flows from financing activity Dividend paid			(9,200)	-
Payment of lease liabilities			(314)	(733)
Net cash used in financing activity			(9,514)	(733)
Net change in cash and cash equivalents			21,018	6,241
Cash and cash equivalents at the beginning of the period			30,853	13,920
Cash and cash equivalents at the end of the period		8.1	51,871	20,161

General Information
Union Insurance Company P.J.S.C. (the "Company") is incorporated as a public shareholding company and operates in the United Arab Emirates ("UAE") under a trade license issued by the Government of Dubai. The Company is registered under the UAE Federal Law No. (32) of 2021 (as amended), relating to commercial companies. The Company is subject to the regulations of the UAE Federal Law No. (6) of 2025 issued by the Central Bank of UAE. The Company is registered with the Insurance Companies Register of the Central Bank of the UAE ("CBUAE") under registration number 67. The Company's registered corporate office is at Single Business Tower, Sheikh Zayed Road, P.O. Box 119227, Dubai, United Arab Emirates ("UAE"). The Company's ordinary shares are listed on the Abu Dhabi Securities Exchange ("ADX").
The principal activity of the Company is the writing of insurance of all types including life insurance. The Company operates through its Head Office in Dubai and Branch Offices in Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah. This financial information has been prepared in accordance with the requirements of the applicable laws and regulations, including the UAE Federal Law No. (32) of 2021 (as amended).
Basis of preparation
This condensed interim financial information has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting and comply with the applicable requirements of the laws in the UAE.
The condensed interim financial information is presented in UAE Dirhams (AED), and all values are rounded
to nearest thousand ("AED'000") except when otherwise indicated.
This condensed interim financial information has been prepared on the historical cost basis, except for the revaluation of financial instruments (including unit linked assets) and provision for employees' end of service indemnity which is calculated in line with UAE labor laws. The accounting policies, presentation and methods in this condensed interim financial information are consistent with those used in the audited financial statements for the year ended 31 December 2025.
The Company's statement of financial position is not presented using a current / non-current classification. However, the following balances would generally be classified as current: Bank deposits, insurance contract assets, cash and cash equivalents and other payables. The following balances would generally be classified as non-current: Property and equipment, intangible assets, right-of-use assets, statutory deposit, unit linked assets, end of service benefits. The following balances are of a mixed nature (including both current and non-current portions): Investment securities, bank deposits, other receivables, reinsurance contract assets and lease liabilities.
This condensed interim financial information does not include all the information required for full annual financial statements and should be read in conjunction with the Company's annual financial statements as at and for the year ended 31 December 2025. In addition, results for the three-month period ended 31 March 2026 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2026.
Material accounting policy information
The accounting policies, critical accounting judgments and key sources of estimation used in the preparation of this condensed interim financial information are consistent with those used in the audited financial statements for the year ended 31 December 2025, except for application of new standards effective as of 1 January 2026 and several amendments and interpretations apply for the first time in 2026.
1. Application of new and revised International Financial Reporting Standards ("IFRS")
  Standard number Title Effective date
  IFRS 9 & IFRS 7 Amendments to IFRS 9 Financial Instruments
  and IFRS 7 Financial Instruments: Disclosures regarding the classification and measurement of financial instruments
  1 January 2026
  This amendments to the standard has been adopted by the Company and did not have a material impact on this condensed interim financial information.
2. Standards, amendments and interpretations to existing Standards that are not yet effective and have not been adopted early by the Company
  Standard number Title Effective date
  IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027
  IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027
  IAS 21 Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)
  1 January 2027
  These standards, amendments and interpretations are not expected to have a significant impact on the condensed interim financial information in the period of initial application and therefore no disclosures have been made.

Investment in securities and unit-linked assets and liabilities

31 March

2026

31 December

2025

Financial assets at fair value through profit or

AED'000 AED'000

(Unaudited) (Audited)

loss (Note 4.1) 58,486 57,347

Financial assets at fair value through other

comprehensive income (Note 4.2) 27 27

58,513 57,374

Unit linked assets (Note 4.3) 312,680 341,261

Investment at fair value through profit or loss
31 March
2026
31 December
2025
AED'000 AED'000
(Unaudited) (Audited)
Quoted equity securities in UAE 55,679 54,539 Quoted equity securities outside UAE 674 674
Quoted bonds in UAE 1,830 1,830
Unquoted equity securities outside UAE 55 56
Unquoted equity securities in UAE 248 248
58,486 57,347
Investments classified at fair value through profit or loss are designated in this category upon initial recognition.
Investment at fair value through other comprehensive income
31 March
2026
31 December
2025
AED'000 AED'000
(Unaudited) (Audited)
Quoted equity securities in UAE 27 27
Investments classified at fair value through other comprehensive income are designated in this category upon initial recognition.
Unit-linked assets
31 March
2026
31 December
2025
Investments held on behalf of policyholders of unit-linked
AED'000 AED'000
(Unaudited) (Audited)
products carried at FVTPL 168,387 187,800 Financial assets from reinsurers towards policyholders of
unit-linked products carried at FVTPL 131,457 140,282 Cash held on behalf of policyholders of unit-linked products
carried at amortised cost 12,836 13,179
312,680 341,261
4 Investment in securities and unit linked assets and liabilities (continued)

Unit linked liabilities

Unit linked liabilities are presented in the condensed interim statement of financial position within the

following accounts:
	31 March	31 December
	2026 AED'000 (Unaudited)	2025 AED'000 (Audited)
Payables to policyholders of unit-linked products	312,680	341,261
Payables classified under insurance contract liabilities*	(29,501)	(35,079)
	283,179	306,182

*The liabilities for unit-linked policies with significant insurance risk are included within the calculation of the insurance contract liabilities amounting to AED 29,501 thousand (31 December 2025: AED 35,079 thousand).

Statutory deposit
In accordance with the requirements of UAE Federal Law No. 6 of 2025, the Company has maintained a bank deposit of AED 10 million (31 December 2025: AED 10 million) as a statutory deposit. This deposit has been pledged to the bank as security against a guarantee issued by the bank in favor of the CBUAE for the same amount.
Insurance and reinsurance contracts

The breakdown of groups of insurance and reinsurance contracts issued, and reinsurance contracts held, that are in an asset position and those in a liability position is set out in the table below:

31 March 2026 31 December 2025

(Unaudited) (Audited)

	Assets	Liabilities	Net	Assets	Liabilities	Net
	AED'000	AED'000	AED'000	AED'000	AED'000	AED'000
Insurance contracts
issued
Life	-	188,491	(188,491)	-	191,480	(191,480)
General	-	597,698	(597,698)	-	423,862	(423,862)
Total insurance contracts issued	-	786,189	(786,189)	-	615,342	(615,342)

Reinsurance contracts held

126,188	1,876	124,312	120,735	1,768	118,967
423,151	24	423,127	269,357	23	269,334
549,339	1,900	547,439	390,092	1,791	388,301

Life General

Total reinsurance contracts held

The roll-forward of the net asset or liability for insurance contracts issued, showing the liability for remaining coverage and the liability for incurred claims, is disclosed in the table on the next page.

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for insurance contracts issued showing the liability for remaining coverage and the liability for incurred claims

Contracts measured under the PAA:

Liabilities for remaining coverage

Liabilities for incurred claims

Estimates of the present

31 March 2026 (Unaudited)	Excluding loss component	Loss component	value of future cash flows	Risk adjustment	Total
	AED'000	AED'000	AED'000	AED'000	AED'000
Insurance contract liabilities as at 1 January 2026	(93,120)	63	548,200	14,704	469,847
Insurance revenue	(164,056)	-	-	-	(164,056)
Insurance service expenses: Incurred claims and other expenses	-	-	140,351	9,055	149,406
Amortisation of insurance acquisition cash flows	13,066	-	-	-	13,066
Losses on onerous contracts and reversals	-	(63)	-	-	(63)
Changes to liabilities for incurred claims	-	-	101,028	(1,391)	99,637
Insurance service result	(150,990)	(63)	241,379	7,664	97,990
Insurance finance expenses	-	-	12,074	(11)	12,063
Total changes in the statement of comprehensive income	(150,990)	(63)	253,453	7,653	110,053
Cash flows Premiums received	222,058	-	-	-	222,058
Claims and other expenses paid	-	-	(140,351)	-	(140,351)
Insurance acquisition cash flows	(18,272)	-	-	-	(18,272)
Total cash flows	203,786	-	(140,351)	-	63,435
Insurance contract liabilities as at 31 March 2026	(40,324)	-	661,302	22,357	643,335
Net insurance contract liabilities as at
31 March 2026	(40,324)	-	661,302	22,357	643,335
31 December 2025 (Audited) Insurance contract liabilities as at 1 January 2025	(24,547)	14,152	660,410	23,666	673,681
Insurance revenue	(602,576)	-	-	-	(602,576)
Insurance service expenses: Incurred claims and other expenses	-	-	529,397	5,708	494,179
Amortisation of insurance acquisition cash flows	49,317	-	-	-	49,317
Losses on onerous contracts and reversals	-	(14,089)	-	-	(14,089)
Changes to liabilities for incurred claims	-	-	(170,109)	(14,695)	(143,878)
Insurance service result	(553,259)	(14,089)	359,288	(8,987)	(217,047)
Insurance finance expenses	-	-	16,973	25	16,998
Total changes in the statement of comprehensive income	(553,259)	(14,089)	376,261	(8,962)	(200,049)
Cash flows Premiums received	532,277	-	-	-	532,278
Claims and other expenses paid	-	-	(488,471)	-	(488,471)
Insurance acquisition cash flows	(47,591)	-	-	-	(47,591)
Total cash flows	487,187	-	(488,471)	-	(3,784)
Net insurance contract liabilities as at 31 December 2025	(93,120)	63	548,200	14,704	469,847

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for insurance contracts issued showing the liability for remaining coverage and the liability for incurred claims (continued)

Analysis by measurement component - Contracts not measured under the PAA

Estimates

31 March 2026 (Unaudited)	of present value of future cash flows	Risk adjustment for nonfinancial risk	CSM	Total
	AED'000	AED'000	AED'000	AED'000
Insurance contract liabilities as at 1 January 2026	122,360	11,061	12,074	145,495
Changes that relate to current services
CSM recognised for services provided	-	-	(316)	(316)
Change in risk adjustment for non-financial risk for risk expired	-	(166)	-	(166)
Experience adjustments	(2,037)	-	-	(2,037)
Changes that relate to future services
Changes in estimates that adjust the CSM	553	(620)	67	-
Changes in estimates that result in losses and reversals of losses on onerous contracts	1,037	(318)	-	719
Changes that relate to past services
Adjustments to liabilities for incurred claims	4,281	-	-	4,281
Insurance service result	3,834	(1,104)	(249)	2,481
Net finance expenses from insurance contracts	(1,616)	47	80	(1,489)
Total changes in the statement of profit or
loss and OCI	2,218	(1,057)	(169)	992
Cash flows
Premiums received	487	-	-	487
Claims and other directly attributable expenses paid	(4,120)	-	-	(4,120)
Total cash flows	(3,633)	-	-	(3,633)
Insurance contract liabilities as at 31 March 2026	120,945	10,004	11,905	142,854
Net insurance contract liabilities as at
31 March 2026	120,945	10,004	11,905	142,854

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for insurance contracts issued showing the liability for remaining coverage and the liability for incurred claims (continued)

Analysis by measurement component - Contracts not measured under the PAA (continued)

Estimates

31 December 2025 (Audited)	of present value of future cash flows	Risk adjustment for nonfinancial risk	CSM	Total
	AED'000	AED'000	AED'000	AED'000
Insurance contract liabilities as at 1 January 2025	120,007	12,460	12,658	145,125
Changes that relate to current services
CSM recognised for services provided	-	-	(1,427)	(1,427)
Change in risk adjustment for non-financial risk for risk expired	-	(643)	-	(643)
Experience adjustments	(4,137)	-	-	(4,137)
Changes that relate to future services
Contracts initially recognised in the year	-	-	-	-
Changes in estimates that adjust the CSM	385	(826)	442	1
Changes in estimates that result in losses and reversals of losses on onerous contracts	(210)	(169)	-	(379)
Changes that relate to past services
Adjustments to liabilities for incurred claims	2,215	-	-	2,215
Insurance service result	(1,747)	(1,638)	(985)	(4,370)
Net finance expenses from insurance contracts	9,379	239	401	10,019
Total changes in the statement of profit or loss and OCI 7,632		(1,399)	(584)	5,649
Cash flows
Premiums received	6,094	-	-	6,094
Claims and other directly attributable expenses paid	(11,373)	-	-	(11,373)
Insurance acquisition cash flows paid	-	-	-	-
Total cash flows	(5,279)	-	-	(5,279)
Net insurance contract liabilities as at 31 December 2025	122,360	11,061	12,074	145,495

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for reinsurance contracts held showing the assets for remaining coverage and the amounts recoverable on incurred claims

Contracts measured under the PAA

Assets for remaining coverage

Excluding

loss

Amounts recoverable on incurred claims

Estimates

of the present value of

31 March 2026 (Unaudited)

recovery component

Loss component

future cash flows

Risk

adjustment Total

AED'000 AED'000 AED'000 AED'000 AED'000

Reinsurance contract assets as at 1 January
2026	(51,154)	-	343,655	11,489	303,990
An allocation of reinsurance premiums	(62,907)	-	-	-	(62,907)
Amounts recoverable from reinsurers
for incurred claims
Amounts recoverable for claims incurred
and other expenses	-	-	53,029	7,996	61,025
Loss-recovery on onerous underlying contracts and adjustments	-	-	-	-	-
Changes to amounts recoverable for incurred claims	-	-	119,327	31	119,358
Net income or expense from
reinsurance contracts held	(62,907)	-	172,356	8,027	117,476
Reinsurance finance income	-	-	7,442	(7)	7,435
Total changes in the statement of
comprehensive income	(62,907)	-	179,798	8,020	124,911
Cash flows
Reinsurance premiums paid	84,840	-	-	-	84,840
Amounts received	-	-	(53,029)	-	(53,029)
Total cash flows	84,840	-	(53,029)	-	31,811
Reinsurance contract assets as at 31
December	(88)	-	62	3	(23)
Reinsurance contract liabilities as at 31
December	(29,133)	-	470,362	19,506	460,735
Net reinsurance contract assets as at31
March 2026	(29,221)	-	470,294	19,509	460,712

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for reinsurance contracts held showing the assets for remaining coverage and the amounts recoverable on claims incurred (continued)

Contracts measured under the PAA (continued)

Assets for remaining coverage

Excluding loss

Amounts recoverable on incurred claims

Estimates of the present value of

recovery component	Loss component	future cash flows	Risk adjustment	Total
AED'000	AED'000	AED'000	AED'000	AED'000
6,079	12,569	487,152	20,881	526,681
(251,783)	(12,569)	-	-	(264,352)
-	-	244,199	3,795	247,994
-	-	-	-	-
-	-	(155,090)	(13,208)	(168,298)
(251,783)	(12,569)	89,109	(9,413)	(184,656)
-	-	11,593	21	11,614
(251,783)	(12,569)	100,702	(9,392)	(173,042)
194,550	-	-	-	194,550
-	-	(244,199)	-	(244,199)
194,550	-	(244,199)	-	(49,649)
89	-	(65)	(2)	22
(51,065)	-	343,590	11,487	304,012
(51,154)	-	343,655	11,489	303,990

31 December 2025

Reinsurance contract assets as at 1 January 2025

An allocation of reinsurance premiums Amounts recoverable from reinsurers for

Amounts recoverable for incurred claims and other expenses

Loss-recovery on onerous underlying contracts and adjustments

Changes to amounts recoverable for incurred claims

Net income or expense from reinsurance Reinsurance finance income

Total changes in the statement of comprehensive income

Cash flows Premiums paid Amounts received Total cash flows

Reinsurance contract assets as at 31 December Reinsurance contract liabilities as at 31 December 2025

Net reinsurance contract assets as at 31 December 2025

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for reinsurance contracts held showing the assets for remaining coverage and the amounts recoverable on claims incurred (continued)

Analysis by measurement component - Contracts not measured under the PAA

Estimates

31 March 2026 (Unaudited)	of present value of future cash flows	Risk adjustment for nonfinancial risk	CSM	Total
	AED'000	AED'000	AED'000	AED'000
Reinsurance contract assets as at 1 January 2026	76,303	3,056	6,743	86,102
Reinsurance contract liabilities as at 1 January 2026	(1,268)	(633)	3,670	1,769
Net reinsurance contract assets	77,571	3,689	3,073	84,333
Changes that relate to current services CSM recognised for services provided	-	-	(122)	(122)
Change in risk adjustment for non-financial risk for
risk expired	-	(103)	-	(103)
Experience adjustments	(1,866)	-	-	(1,866)
Changes that relate to future services Changes in estimates that adjust the CSM	198	(6)	(192)	-
Changes in estimates that relate to losses and
reversals of losses on onerous underlying contracts	(1)	(6)	-	(7)
Changes that relate to past services
Adjustments to assets for incurred claims	3,843	-	-	3,843
Net expenses from reinsurance contracts	2,174	(115)	(314)	1,745
Net finance income from reinsurance contracts	548	48	53	649
Total changes in the statement of profit or loss
and OCI Cash flows	2,722	(67)	(261)	2,394
Premiums received -		-	-	-
Claims and other directly attributable expenses paid	-	-	-	-
Total cash flows	-	-	-	-
Reinsurance contract assets as at 31 March 2026	79,002	2,987	6,615	88,604
Reinsurance contract liabilities as at 31 March 2026	(1,291)	(635)	3,803	1,877
Net reinsurance contract liabilities as at 31 March 2026	80,293	3,622	2,812	86,727

6 Insurance and reinsurance contracts (continued)

Roll-forward of net asset or liability for reinsurance contracts held showing the assets for remaining coverage and the amounts recoverable on claims incurred (continued)

Analysis by measurement component - Contracts not measured under the PAA (continued)

CSM

			Contracts
	Estimates		under
	of present		modified
	value of	Risk	retrospective
	future cash	adjustment for	transition
31 December 2025	flows	non-financial risk	approach	Total
	AED'000	AED'000	AED'000	AED'000
Net reinsurance contract assets as at 1 January 2025	78,160	3,944	1,985	84,089
Changes that relate to current services
CSM recognised for services provided	-	-	(475)	(475)
Change in risk adjustment for non-financial risk for	-	(452)	-	(452)
Experience adjustments	(4,003)	-	-	(4,003)
Changes that relate to future services
Contracts initially recognised in the year	-	-	-	-
Changes in estimates that adjust the CSM	(1,357)	(48)	1,404	(1)
Changes in estimates that relate to losses and reversals of losses on onerous underlying contracts	(405)	8	-	(397)
Changes that relate to past services
Adjustments to assets for incurred claims	2,303	-	-	2,303
Net expenses from reinsurance contracts	(3,462)	(492)	929	(3,025)
Net finance income from reinsurance contracts	5,812	237	159	6,208
Total changes in the statement of profit or loss and OCI	2,350	(255)	1,088	3,183
Cash flows
Premiums received	1,064	-	-	1,064
Claims and other directly attributable expenses paid	(4,003)	-	-	(4,003)
Total cash flows	(2,939)	-	-	(2,939)
Reinsurance contract assets as at 31 December 2025	76,303	3,056	6,743	86,102
Reinsurance contract liabilities as at 31 December 2025	(1,268)	(633)	3,670	1,769

Net reinsurance contract assets as at 31 December 2025

77,571 3,689 3,073 84,333

6 Insurance and reinsurance contracts (continued)

Expected recognition of the contractual service margin - An analysis of the expected recognition of the CSM remaining at the end of the reporting period in profit or loss is provided in the following table (number of years until expected to be recognized).

1 year 2 year 3 year 4 year 5 year >6 year Total

AED'000

AED'000			AED'000	AED'000	AED'000	AED'000	AED'000
31 March 2025 (Unaudited) Insurance contracts	890	1,055	931	858	791	7,380	11,905
issued
Reinsurance contracts held	296	319	281	279	276	1,361	2,812

594	736	650	579	515	6,019	9,093
1,199	1,050	926	853	786	7,260	12,074
402	325	286	283	280	1,498	3,074
797	725	640	570	506	5,762	9,000

31 December 2025 (Audited)

Insurance contracts issued

Reinsurance contracts held

Reconciliation of the measurement components of insurance and reinsurance contract balances measured under both PAA and Non-PAA as at:

	PAA	Non-PAA	Total
31 March 2025 (Unaudited)	AED'000	AED'000	AED'000
Insurance contract liabilities	643,335	142,854	786,189
Reinsurance contract assets	(460,735)	(88,604)	(549,339)
Reinsurance contract liabilities	23	1,877	1,900
	182,623	56,127	238,750
	PAA	Non-PAA	Total
31 December 2025 (Audited)	AED'000	AED'000	AED'000
Insurance contract liabilities	469,847	145,495	615,342
Reinsurance contract assets	(303,990)	(86,102)	(390,092)
Reinsurance contract liabilities	22	1,769	1,791
	165,879	61,162	227,041

Discount rates applied for discounting future cash flows are listed below:

1 year		3 years		5 years		10 years
2026	2025	2026	2025	2026	2025	2026 2025

Discount rate 4.73 % 4.55 % 4.86 % 4.62 % 4.98 % 4.81 % 5.40 % 5.31 %

7 Other receivables
	31 March	31 December
	2026 AED'000	2025 AED'000
	(Unaudited)	(Audited)
Other receivables	50,772	48,661
Prepaid expenses	4,642	6,302
	55,414	54,963
8 Bank balances and cash
8.1 Cash and cash equivalents	31 March	31 December
	2026 AED'000 (Unaudited)	2025 AED'000 (Audited)
Cash on hand Bank balances:	35	35
Current accounts with banks	51,836	30,818
	51,871	30,853
In UAE	50,458	29,449
Outside UAE	1,413	1,404
	51,871	30,853
8.2 Bank deposits
	31 March	31 December
	2026 AED'000	2025 AED'000
	(Unaudited)	(Audited)
Deposits with original maturities greater than three-months	443,546	439,045
In UAE	443,546	439,045
Outside the U.A.E.	-	-
	443,546	439,045

Bank deposits carried interest rates ranging from 1.5% - 5.07% per annum (31 December 2025: 3.5% to 4.5% per annum). Bank deposits of AED 45 million (31 December 2025: AED 45 million) have been pledged as security against the overdrafts facility which is to manage the liquidity position.

Share capital
31 March
2026
31 December
2025
Issued and fully paid 250,000,000 shares of AED 1 each
AED'000 AED'000
(Unaudited) (Audited)
(2025: 230,000,000 of AED 1 each) 250,000 230,000
During the period, the shareholders of the Company approved distribution of dividends to shareholders by way of bonus shares with a total value of AED 20,000 thousand, in addition to the cash dividends of 4% of nominal value per share (amounting to AED 9,200 thousand). Accordingly, the Company's share capital has increased by AED 20,000 on account of the bonus shares issued during the period.
Reserves
1. Statutory reserve
  In accordance with UAE Federal Law No. (32) of 2021(as amended) and the Company's Article of Association, the Company is required to transfer 10% of the profits at the end of the year to the statutory reserve. No transfers have been made during the three-month period ended 31 March 2026 as the transfers are made on annual profits. (31 March 2025: AED nil)
2. Reinsurance reserve
  In accordance with the requirements of Article 34 of CBUAE's Board of Directors Decision No. 23 of 2019, the Company has transferred AED 640 thousand from the profit for the period to the reinsurance reserve being 0.5% of the total insurance premium ceded to reinsurers during the three-month period ended 31 March 2026 (31 March 2025: AED 515 thousand). The Company shall accumulate such provision period on period and shall not dispose of the reserve without the written approval of the Director General within the CBUAE.
3. Fair value reserve
  The fair value reserve comprises the cumulative net change in fair value of financial assets designated as fair value through other comprehensive income.

Other payables

	31 March	31 December
	2026 AED'000 (Unaudited)	2025 AED'000 (Audited)
Other payables	98,646	94,231
Employee accruals	6,889	8,489
Corporate tax payable	5,716	4,359
Lease liabilities	2,856	3,171
	114,107	110,250

Union Insurance Company P.J.S.C. Condensed interim financial information (Unaudited) Notes to the condensed interim financial information (continued) For the three-month period ended 31 March 2026

Insurance revenue

	Life	General	Total
For the three-month period ended 31 March 2026	AED'000	AED'000	AED'000
(Unaudited)
Contracts not measured under the PAA
Amounts relating to changes in liabilities for remaining coverage
CSM recognised for services provided	316	-	316
Change in risk adjustment for non-financial risk for risk expired	151	-	151
Expected incurred claims and other insurance service expenses	2,301	-	2,301
Recovery of insurance acquisition cash flows	91	-	91
	2,859	-	2,859
Contracts measured under the PAA	8,062	155,994	164,056
	10,921	155,994	166,915
For the three-month period ended 31 March 2025 (Unaudited)
Contracts not measured under the PAA
Amounts relating to changes in liabilities for remaining coverage
CSM recognised for services provided	292	-	292
Change in risk adjustment for non-financial risk for risk expired	142	-	142
Expected incurred claims and other insurance service expenses	2,540	-	2,540
Recovery of insurance acquisition cash flows	96	-	96
	3,070	-	3,070
Contracts measured under the PAA	4,245	136,983	141,228
	7,315	136,983	144,298

Insurance service expense

	Life	General	Total
	AED'000	AED'000	AED'000
For the three-month period ended 31 March 2026
(Unaudited)
Incurred claims and other expenses	5,721	135,153	140,874
Amortisation of insurance acquisition cash flows	281	12,875	13,156
Losses on onerous contracts and reversals of those losses	433	(51)	382
Changes to liabilities for incurred claims	2,235	110,737	112,972
	8,670	258,714	267,384
For the three-month period ended 31 March 2025
(Unaudited)
Incurred claims and other expenses	9,133	121,225	130,358
Amortisation of insurance acquisition cash flows	251	13,060	13,311
Losses on onerous contracts and reversals of those losses	(346)	(12,216)	(12,562)
Changes to liabilities for incurred claims	(7,212)	(38,840)	(46,052)
	1,826	83,229	85,055

During January 2026, a major claim was reported which is reflected in the insurance service expenses compared to the corresponding results of 31 March 2025. The claim is majorly protected by reinsurance arrangements and is fully recorded in this condensed interim financial information.

Net insurance financial result
For the three-month period ended 31 March 2026 (Unaudited)
Life General Total
AED'000 AED'000 AED'000
Insurance finance expenses from insurance contracts issued (11,387) (1,427) (12,814)
Reinsurance finance income from reinsurance contracts held 6,967 1,113 8,080
For the three-month period ended 31 March 2025 (Unaudited)
Insurance finance expenses from insurance contracts issued (3,743) (8,024) (11,767) Reinsurance finance income from reinsurance contracts held 3,174 5,893 9,067

Basic and diluted earnings per share

	Three-month period ended	Three-month period ended
	31 March 2026 (Unaudited)	31 March 2025 (Unaudited) (Restated)
Profit for the period after tax (AED'000) Weighted average number of shares outstanding during the period (000)	14,090 250,000	13,050 250,000
		Restated
Basic earnings per share (AED)	0.056	0.052

In accordance with IAS 33 "Earnings Per Share", the weighted average number of ordinary shares used in the calculation of EPS for the comparative period (Q1 2025) has been retrospectively adjusted to reflect the issuance of bonus shares as disclosed in note 9.

Income tax expense
The Company has calculated their income tax liability in accordance with Federal Decree-Law No 47 of 2022
on the Taxation of Corporations and Businesses, Corporate Tax Law ("CT Law").
The income tax expense recognised in the condensed interim statement of profit or loss and other comprehensive income comprises the following:
Three-month period ended 31 March 2026
Three-month period ended 31 March 2025
Income tax
(Unaudited) (Unaudited)
AED'000 AED'000
Current income tax expense 1,356 1,146
Union Insurance Company P.J.S.C. Condensed interim financial information (Unaudited) Notes to the condensed interim financial information (continued) For the three-month period ended 31 March 2026
Segment information

For management purposes the Company is organized into two operating segments, general insurance, and life assurance. These segments are the basis on which the Company reports its primary segment information.

General Insurance Life Insurance Total

31 March

31 December

31 March

31 December

31 March

31 December

	2026	2025	2026	2025	2026	2025
	AED'000	AED'000	AED'000	AED'000	AED'000	AED'000
Assets	(Unaudited)	(Audited)	(Unaudited)	(Audited)	(Unaudited)	(Audited)
Property and equipment	2,408	2,498	803	832	3,211	3,330
Intangible assets	806	1,046	269	348	1,075	1,394
Right-of-use-assets	2,213	2,473	738	824	2,951	3,297
Unit-linked assets	-	-	312,680	341,261	312,680	341,261
Investment securities	43,795	42,941	14,718	14,433	58,513	57,374
Statutory deposit	6,000	6,000	4,000	4,000	10,000	10,000
Reinsurance contract assets	423,151	269,376	126,188	120,716	549,339	390,092
Other receivables	47,180	45,962	8,234	9,001	55,414	54,963
Bank deposits	332,660	329,284	110,886	109,761	443,546	439,045
Cash and cash equivalents	38,903	23,140	12,968	7,713	51,871	30,853
Total assets	897,116	722,720	591,484	608,889	1,488,600	1,331,609
Liabilities
Provision for employees' end of service benefit	6,767	6,548	2,255	2,183	9,022	8,731
Insurance contract liabilities	597,698	423,862	188,491	191,480	786,189	615,342
Reinsurance contract liabilities	24	23	1,876	1,768	1,900	1,791
Insurance and other payables	29,140	16,635	84,967	93,615	114,107	110,250
Payables to policyholders of unit-linked products	-	-	283,179	306,182	283,179	306,182
Total liabilities	633,629	447,068	560,768	595,228	1,194,397	1,042,296

Segment information (continued)

Three-month period ended 31	Three-month period ended 31	Three-month period ended 31	Three-month period ended 31	Three-month period ended 31	Three-month period ended 31
March 2026	March 2025	March 2026	March 2025	March 2026	March 2025
AED'000	AED'000	AED'000	AED'000	AED'000	AED'000
(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
155,994	136,984	10,921	7,314	166,915	144,298
(258,715)	(83,229)	(8,671)	(1,826)	(267,386)	(85,055)
(102,721)	53,755	2,250	5,488	(100,471)	59,243
(72,861)	(82,017)	(3,809)	(3,500)	(76,670)	(85,517)
190,113	38,490	5,780	1,033	195,893	39,523
117,252	(43,527)	1,971	(2,467)	119,223	(45,994)

General Insurance Life Insurance Total

Insurance revenue Insurance service expenses

Insurance service result before reinsurance contracts held

Allocation of reinsurance premiums

Amounts recoverable from reinsurance for incurred claims

Net income/ (expenses) from reinsurance contracts held

Insurance service result	14,531	10,228	4,221	3,021	18,752	13,249
Interest revenue calculated using the effective interest method	3,380	3,883	1,127	1,294	4,507	5,177
Net fair value loss on financial assets at FVTPL	(197)	(1,036)	(66)	(345)	(263)	(1,381)
Other investment income	93	679	31	226	124	905
Total investment income Insurance finance expense for insurance contracts issued Reinsurance finance income for reinsurance contracts	3,276 (11,387) 6,967	3,526 (8,024) 5,893	1,092 (1,427) 1,113	1,175 (3,743) 3,174	4,368 (12,814) 8,080	4,701 (11,767) 9,067
Net insurance financial result	(4,420)	(2,131)	(314)	(569)	(4,734)	(2,700)
Net insurance and investment results	13,387	11,623	4,999	3,627	18,386	15,250
Other operating (expense)/income	(2,360)	(40)	(580)	(1,014)	(2,940)	(1,054)
Profit for the period before tax	11,027	11,583	4,419	2,613	15,446	14,196
Income tax expense					(1,356)	(1,146)
Profit for the period after tax					14,090	13,050
						Restated
Basic and diluted earnings per share					0.056	0.052

Related party balances and transactions

The Company, in the normal course of business, collects premiums, settles claims and enters into transactions with other business enterprises that fall within the definition of a related party as defined by International Accounting Standard 24 - (Revised). Related parties include the Company's major Shareholders, Directors and businesses controlled by them and their families over which they exercise significant management influence as well as key management personnel.

At the end of the reporting period, balances due from/to related parties which are included in the respective account balances are detailed below:

	31 March	31 December
Balances with entities related to Board members	2026 AED'000 (Unaudited)	2025 AED'000 (Audited)
Gross outstanding claims (included in insurance contract liabilities)	22	17
Fixed deposits	80,631	80,631
Bank account	13,442	1,220
Balances with former major shareholder Insurance premium receivable (included in insurance contract assets)	26,603	26,603
Provision for expected credit losses	(26,360)	(26,360)
Net	243	243
Investment properties reclassified to "Advance paid for purchase of real estate properties"	72,270	72,270
Reversal of net fair value gains recorded in prior years	(35,770)	(35,770)
Advance paid for purchase of real estate properties *	36,500	36,500
Provision on advance paid for purchase of real estate properties	(36,500)	(36,500)
	-	-

The outstanding amounts are unsecured, interest free and repayable on demand. No guarantees have been given to the related parties.

*The amount under the advance paid for real estate properties (AED 36.5 million) was represented as Investment Properties with a carrying value in the books of AED 72.3 million in the audited financial statements for the year ended 31 December 2020. The said asset represents purchased assets from related parties during the years 2013 and 2014. The purchased assets comprise a 60 residential-unit in a single building and a plot of land of 150,000 square feet with integrated infrastructure. For one of the assets, the agreement was entered in 2013 to purchase 150,000 square feet of the land, which was reduced to 56,800 square feet and later amended to 78,900 square feet based on the instruction received from the former Chairman who was also the representative of the related party.

The counterparties (related parties) to the above transactions never fulfilled their obligations to the Company (the Buyer), and as a result the Company did not obtain the title deeds nor obtain possession of the said assets. This has resulted in the incorrect recognition of fair value gains of AED 35.8 million on investment properties in respect of which the Company never obtained possession or legal title, and the misappropriation of advances amounting to AED 36.5 million paid to a related party towards the acquisition of the investment properties. Accordingly, the Board of Directors of the Company decided to book a full provision (AED 72.3 million) against the said assets and proceed with legal action against all parties involved, to recover the Company's rights, in accordance with the resolution of the Shareholders Assembly Meeting held on 30 September 2021.

Related party balances and transactions (continued)

During the period, the Company entered into the following transactions with related parties:

Three-month period ended 31 March

	2026 AED'000 (Unaudited)	2025 AED'000 (Unaudited)
Transactions with former major
shareholder
Insurance revenue	81	-
Claims paid	14	1
FD interest income from Bank of Umm Al Quwain	808	986
Bank charges	14	-

Rental paid 192 268

Compensation of key management personnel

Short-term benefits 420 360

Long-term benefits 12 11

Commitments and contingent liabilities
31 March
2026
31 December
2025
AED'000 AED'000
(Unaudited) (Audited)
Letters of guarantee* 11,270 10,922
*Includes AED 10 million (31 December 2025: AED 10 million) issued in favor of the CBUAE (Note 5).
Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants take those characteristics into account when pricing the asset or liability at the measurement date.

Fair value of financial instruments carried at amortised cost

Management considers that the carrying amounts of financial assets and financial liabilities recognised at amortised cost in the condensed interim financial information approximate their fair values.

Valuation techniques and assumptions applied for the purposes of measuring fair value

The fair values of assets and liabilities are determined using similar valuation techniques and assumptions as used in the audited annual financial statements for the year ended 31 December 2025.

20 Fair value measurement (continued)

Fair value of the Company's financial assets and liabilities that are measured at fair value on a recurring basis

Some of the Company's financial assets and liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined:

Fair value as at

Financial assets

31 March

2026

(Unaudited)

31 December

2025

(Audited)

Fair value

Significant unobservable

Relationship of unobservable

Financial assets measured at FVTPL

AED'000 AED'000

hierarchy Valuation techniques and key inputs

input

inputs to fair value

Quoted equity securities 56,353 55,213 Level 1 Quoted bid prices in an active market. None Not applicable Quoted bonds 1,830 1,830 Level 1 Prices as per the portfolio bank statement None Not applicable Higher the net

value

Unquoted equity securities 303 303 Level 3 Net assets valuation method Net asset

assets, value of the

investees, higher the fair value.

Investment held on behalf of the Policyholder of Unit linked products

Due from reinsurers towards policyholders of unit linked products

168,387 187,800 Level 2 Quoted prices in secondary market None Not applicable

131,457 140,282 Level 2 Quoted prices in secondary market None Not applicable

Financial assets measured at FVTOCI

Quoted equity securities 27 27 Level 1 Quoted bid prices in an active market None Not applicable

Financial liabilities measured at FVTPL

Unit linked liabilities (excluding cash held

299,844 328,082 Level 2 Quoted prices in secondary market None Not applicable

within the related unit linked assets)

There were no transfers between levels during the period. There are no other financial liabilities apart from the liabilities disclosed above which should be categorized under any levels in the above table.

Capital risk management

The solvency regulations identify the required Solvency Margin to be held in addition to insurance liabilities. The Solvency Margin (presented in the table below) must be maintained at all times throughout the period. The Company is subject to solvency regulations which it has complied with during the year. The Company has incorporated in its policies and procedures the necessary tests to ensure continuous and full compliance with such regulations.

The table below summarises the Minimum Capital Requirement, Minimum Guarantee Fund and Solvency Capital Requirement of the Company and the total capital held to meet these required Solvency Margins.

	31 March 2026	31 December 2025
	AED'000	AED'000
	(Unaudited)	(Unaudited)
Minimum Capital Requirement (MCR)	100,000	100,000
Solvency Capital Requirement (SCR)	121,965	100,609
Minimum Guarantee Fund (MGF)	122,896	116,079
Basic Own Funds	186,827	182,287
MCR Solvency Margin - Minimum Capital Requirement (Surplus)	86,827	82,287

SCR Solvency Margin - Solvency Capital Requirement

(Surplus) 64,862 78,383

MGF Solvency Margin - Minimum Guarantee Fund

(Surplus) 63,932 66,208

Subsequent events
There have been no events subsequent to the statement of financial position date that would significantly affect the amounts reported in the financial information as at and for the three-month period ended 31 March 2026.
Approval of condensed interim financial information

The condensed interim financial information was approved by the Board of Directors and authorized for issue on 13 May 2026.

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