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SALAMA reports net income of AED 43.23m in nine months; focused on accelerating digital efforts and improving operational performance

November 14, 2021

Highlights:

  • SALAMA maintained momentum with improved operating performance, generating net underwriting income of AED 122.5 million, up 0.75% YoY
  • Decrease in investment income by 73.54% to AED 27.1 million in 2021 compared to AED 102.5 million in the previous year, principally driven by one-off gain on the sale of investments in SALAMA KSA in the prior year
  • Achieved gross written contributions of AED 866.1 million for the first nine months 
  • 19.60% increase in invested assets from AED 1.143 billion to 1.368 billion, highlighting the effectiveness of the board’s investment strategy
  • The Board remains optimistic on the Outlook for the remainder of 2021; underpinned by ongoing digitization initiatives and a continued focus on improvement in operational efficiency.

Dubai, November 14, 2021: Islamic Arab Insurance Company, listed as “SALAMA” on the DFM, today announced its audited financial results for the third quarter of 2021. The company reported a net income of AED 43.23 million for the nine-month period ended 30 September 2021.

The company also recorded a net underwriting income of AED 122.5 million, an increase of 0.75% over the same period last year. This is the result of continued measures to assess and restructure operations and processes and related IT infrastructure to enhance digital business opportunities, as well as a disciplined approach to underwriting.

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 866.1 million during the 9-month period, demonstrating operational excellence despite a changing environment. 

SALAMA’s subsidiaries in Egypt and Algeria also posted positive results, generating a combined profit of AED 25 million for the nine months ended 30 September 2021.

SALAMA achieved strong growth in net investment income, driven by a 19.60% increase in invested assets from AED 1.143 billion to AED 1.368 billion in Q3 2021, demonstrating the effectiveness of the investment strategy deployed by the Board last year.

Jassim Alseddiqi, SALAMA’s Chairman, said, “We are pleased to report SALAMA’s resilient financial performance for the nine-month period. It is testament to the chosen strategy that we are deploying and is supported by the investments we have made to date to create sustainable and long-term value for our policyholders and shareholders. We look forward with confidence to a steady final quarter of the year as SALAMA continues to accelerate its digitization efforts and streamline costs.”

Fahim AlShehhi, CEO of SALAMA, said, ” Our Q3 performance reflects the tireless efforts of our team to adapt and respond to our clients’ changing needs, the successful execution of the Board’s strategy and our focus on building out our digital capabilities. We have also adjusted our strategy to reflect recent regulatory developments, particularly in relation to strengthening our partnerships, exploring further cross-selling opportunities, and diversifying our distribution channels – and we believe that this will help to further grow our business and expand our customer base.” 

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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