SALAMA Profit for Second Quarter 2007 reach AED 33.6 Million Premiums Rise By 50%

SALAMA (IAIC) of UAE announced that its interim net profits for the second quarter of 2007 AED 33.6 million compared to AED 32.0 million for the same quarter 2006, at a growth rate of 5% over last year’s figures. The volume of insurance premiums in the first half of 2007 reached AED 462 million compared to AED 310 M in the first half of 2006, growing at the rate of 50%.

Sheikh Khaled Bin Zayed Bin Sagr Al-Nahayan, the company’s chairman, said that the volume of business of all subsidiary companies has grown. He added that most of such growth does not get reflected in the interim quarterly statements due to the need of building.

reserves for insurance operations. However, he said, it is expected operational profits will grow at a similar rate by the end of the year.  During  the  2nd  Quarter  2007, the current market position  and  the  maintaining of a conservative reserving policy have led
Best  Re  to  a  slight  increase in its loss reserves of 5%. This
situation do not  affect  the  final  semi-annual  result neither the ROE
progressing however of 12%.”

Dr. Saleh J. Malaikah, SALAMA’s Vice Chairman and CEO, drew attention that these figures do not reflect the beneficial effects of the operations of the newly created Saudi IAIC for Cooperative Insurance in which SALAMA holds is the largest shareholder.  Takaful operations in Saudi Arabia, the largest market for Takaful in the region, are likely to constitute a significant source of income for SALAMA.

Malaikah pointed out that the capital of SALAMA is AED 1.1 billion (about US$300 million). He added that the company’s shares are traded on the Dubai Financial Market and that,.SALAMA enjoys the rating of BBB+ from S&P and B++ from A M Best, making it one of the very few Takaful companies in the region to have been rated by either of the two rating agencies. It hold the distinction of being the first Takaful company to be rated by S&P.

The shares of Saudi IAIC (SALAMA) began trading on the Saudi stock exchange since 16.06.2007 where the share price ranged between SR 95 and SR 99, reaching a peak price of SR 1 18 . Malaikah considered this high value of the company’s shares a reflection of investors’ confidence in the company’s marketing plans and outlook. He considered this as a positive sign that the company is on the right track, depending on experience and professional pioneering in the Takaful industry.

SALAMA enjoys both Arab and international presence. The company embarked from Dubai on its quest for expansion through acquisition and participation in a number of Takaful and Re-Takaful companies in a number of Arab and Islamic countries. Among the prominent subsidiaries of SALAMA is the wholly owned Tunisia-based BEST Re which operates in 70 countries around the globe through its regional offices. SALAMA is also a founder and the largest shareholder in Saudi IAIC for Cooperative insurance,    owns 52% in SOSAR of Senegal, has 96% shareholding in the Bahrain-based Takaful And Re-Takaful International Investment Co. (TARIIC) as well owns 51% shareholding in the Cairo-based Egyptian Saudi Insurance Home (ESIH) in addition to 90% shareholding in SALAMA Algeria.