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SALAMA reports AED 40.29m, driving continued profitability and strong operational performance

August 14, 2021

Highlights:

  • A net income of AED 40.29 million was achieved in the first half of 2021.
  • SALAMA continues to showcase excellent operating performance with net underwriting income of AED 84.96m, up by 1.2% year on year.
  • 87.53% increase in investment income to AED 31.91 million in 2021 compared with AED 17.01 million last year.
  • Achieved Gross written contributions of AED 655.5 million in H1 2021.
  • Strong growth in net investment income due to an 11.70% increase in invested assets from AED 1.143 billion to AED 1.277 billion, highlighting the effectiveness of the board’s investment strategy.
  • The company is optimistic about the remaining half of 2021 supported by ongoing digitization initiatives and continuous improvement in operational efficiency. 

Dubai, August 14, 2021: Islamic Arab Insurance Company, listed as “SALAMA” on the DFM, today announced its audited financial results for the second quarter of 2021. The company reported a net income of AED 40.29 million for the first half of 2021. 

SALAMA maintained momentum in achieving its strategic objectives, with solid performance in improving core business profitability and investment income, which increased by 87.53% to AED 31.91 million in the first half of the year, compared to AED 17.01 million in the same period last year. 

The company also recorded a net underwriting income of AED 84.96 million, an increase of 1.2% over the same period last year. This is the result of significant measures to revamp and restructure operations and processes and related IT infrastructure to enhance digital business opportunities, as well as tight underwriting controls.

SALAMA’s strategic focus on the local UAE market, where it sees the most growth potential, enabled the company to maintain its gross written contributions at AED 655.51 million in the second quarter, demonstrating operational excellence despite a challenging macroeconomic environment and the lingering effects of the pandemic.

SALAMA’s subsidiaries in Egypt and Algeria also posted positive results, recording a combined profit of AED 15 million in the first half of 2021, compared to AED 18.83 million for the same period last year. 

Importantly, SALAMA achieved strong growth in net investment income, driven by an 11.70% increase in invested assets from AED 1.143 billion to AED 1.277 billion in Q2 2021. This increase demonstrates the progress the company has made in redeploying cash flows into high quality assets as part of the prudent investment strategy adopted by the Board last year.

Jassim Alseddiqi, SALAMA’s Chairman said, “SALAMA’s second quarter results highlight the company’s underlying performance and resilience in the face of challenging market conditions. Importantly, we are growing as a business and seeing an increase in our investment income and underwriting income. Looking ahead to the second half of 2021, we are confident that we can grow our operating profit and achieve our goal of creating sustainable, long-term value for our policyholders and shareholders.”

Fahim AlShehhi, CEO of SALAMA, said, “The H1 results reflect SALAMA’s growth momentum and demonstrate a solid foundation for transformation, and our ability to manage market pressures and continue to grow by focusing on improving our digital and operational capabilities. We are aligned with the Board’s strategy and remain in a strong position to support our employees and communities while creating value for our shareholders.”

In view of the good results, SALAMA’s Board of Directors has scheduled to meet on 5th September 2021 to discuss the distribution of semi-annual dividends to shareholders.

SALAMA stands as the largest sharia’h compliant Takaful operator with ‘AAA’ level capital adequacy as per S&P. SALAMA remains committed to serving partners and customers while enhancing shareholder returns in 2021 and beyond.

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