Uncategorized

Islamic Arab Insurance Company (SALAMA) Posts AED 55 Million Net Profit for 2019

February 10, 2020

Highlights:

  • First time in history of SALAMA since listing, Board of Directors to recommend cash dividend level after final audited financials are released.
  • Gross written premium (GWP) grew by 6.33% from AED 1.063 billion in 2018 to AED 1.130 billion in 2019.
  • Underwriting income increased by 21% to AED 183 million in 2019 from AED 151 million in 2018.
  • Net profit of AED 55 million reported in 2019 as compared AED 2 million in 2018
  • 87% increase in investment income from AED 12.4 million in 2018 to 23.3 million in 2019.
  • Decrease in expenses by 8% bringing it down to AED 117 million in 2019 from AED 127 million in 2018

Islamic Arab Insurance Company, listed as “SALAMA” on DFM and the UAE’s largest Shari’ah compliant Takaful insurer, announced its preliminary unaudited and unreviewed financial results for the year ended 31 December 2019, reporting net profit of AED 55 million compared to AED 2 million in 2018. The results are bolstered by SALAMA’s effective strategies and strong controls implemented by new board of directors.

SALAMA’s topline showed an upward trend throughout the year 2019 reaching AED 1.130 billion from AED 1.063 billion in 2018.

SALAMA demonstrated operational excellence and effective underwriting controls, resulting in growth of underwriting profit to AED 183 million in 2019 compared to AED 151 million in 2018. This also had a positive impact on expense management, decreasing the same by AED 10 million to AED 117 million in the year 2019 from AED 127 million in the year 2018 despite the challenging and competitive business environment and without compromising on the quality and speed of service.

During the beginning of 2019, SALAMA had embarked on a journey to improve its investment portfolio. The efforts made towards this aim have resulted in 87% increase in SALAMA’s investment income taking it to 23.3 million in 2019 from 12.4 million in 2018.

The Board of Directors will recommend the level of cash dividend after final annual financials are released. This will be the first time since listing of SALAMA on the Dubai Financial Market that it recommends a cash dividend.

As the UAE’s largest Shari’ah compliant Takaful insurer with ‘AAA’ level capital adequacy, SALAMA also achieved an upgraded rating of ‘BBB’ with stable outlook in 2019. 

Leave a Reply