Press Releases

10/08/2020 – SALAMA 2020 half-year net profit increases 41.03 % to AED 47.05m

Dubai, Aug 10, 2020: Islamic Arab Insurance Company, listed as “SALAMA” on DFM, announced its interim results for the first six months of 2020.

Highlights:

• Gross written premium (GWP) grew by 6.9% from AED 650m in H1 2019 to AED 695m in H1 2020, despite challenges of COVID-19 pandemic
• Net profit reported for H1 2020 increased to AED 47.05m from AED 33.36m in H1 2019.
SALAMA reported growth of 6.9% in gross written contribution, from AED 650m in H1 2019 to AED 695m in H1 2020. SALAMA’s net profit increased to AED 47.05m in H1 2020 from AED 33.33m in H1 2019 and this has been possible due to the strategies implemented at Board Level focusing on core business profitability, enhancement of investment income and implementation of superior governance standards.

SALAMA continues to maintain its leading position in the Takaful segment of the UAE market. Despite global uncertainty due to COVID-19, SALAMA continued on its growth trajectory, achieving a substantial increase in its Gross Premium Income. All lines of business and subsidiaries performed as per expectations, except SALAMA Algeria, which reported decreasing gross premium income in the first half of 2020. The prudent investment strategy has shielded SALAMA from fluctuation in international and local equity markets.

SALAMA’s focus on strong business practices, customer centric offerings and technology driven solutions has made it possible to serve customers and partners seamlessly during the slowdown of business activities caused by COVID-19 pandemic.

Use of varied technologies to reach out to customers for sales and service, inhouse and remote capabilities to manage issuance of policies online, prudent underwriting controls along with efficient claims management resulted in growth of underwriting income from 76.72m in 2019 to 83.89m 2020, reflecting growth of 9.34%from corresponding year figures.

Commenting on the results, Mustafa G. Kheriba, SALAMA Group Managing Director, said,

“SALAMA has remained resilient in the first half of 2020 in face of uncertainties and unseen challenges posed by the pandemic. Our customer-centric approach backed with specific business and investment strategies have paved the way for SALAMA’s success. We accelerated our digital capabilities to provide convenience and easier access to customers. We will continue to closely monitor the changes as the path of recovery remains uncertain”.

He also added, “As the UAE ranks high for COVID-19 response globally, SALAMA continues to support the front line health workers and recognizes the efforts of all individuals who strive to make our lives better with deep gratitude. Our Front line Health Worker campaign will continue to support such professionals and our leadership team will remain focused on delivering sustainable value to our customers, partners and community at large”.

The continued growth has resulted in SALAMA’s rating being maintained at the same levels of 2019, which is BBB. 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 2020.

21/05/2020 – SALAMA announces AED 13.65 million profit for Q1 2020

Dubai – United Arab Emirates, May 21, 2020:
Islamic Arab Insurance Company (“SALAMA”), UAE’s largest and oldest takaful provider, announced its reviewed financial results for the quarter ending March 31, 2020, reporting a net profit attributable to shareholders of AED 13.65 million as compared to AED 14.96 million in Q1 2019. The Gross Written Contribution grew by 26% to reach AED 441 million in Q1 2020 compared to AED 351 million in Q1 2019.

SALAMA continues to maintain its leading position in the Takaful segment of the UAE market. Despite global uncertainty due to COVID-19, SALAMA continued on its growth trajectory, achieving a substantial increase in its Gross Written Contribution. All lines of business and subsidiaries performed as per expectations, except SALAMA Algeria, which reported decreased Gross Written Contribution and increased claims cost in the first quarter of 2020, contributing to decrease in the overall net profits of SALAMA. The prudent investment strategy has shielded SALAMA from fluctuation in international and local equity markets.

SALAMA is very carefully monitoring the situation from COVID-19 and adjusting its underwriting and product parameters in response to the market conditions. With prudent cashflow management and stringent control of expenses, SALAMA expects to weather this crisis. SALAMA has not seen a significant deterioration in claim experience due to the COVID-19 crisis.

SALAMA has effectively transitioned to Work From Home and is serving customers and its distribution partners seamlessly and meeting all its customer service benchmarks.

SALAMA maintains a strong solvency position, AAA-rated capital adequacy as recognized by S&P.

25/03/2020 – SALAMA Insurance achieves AED 55 million net profit in 2019 and the Board of Directors recommends cash dividends

Highlights:

• Gross written premium (GWP) grew by 6.25% to AED 1,106 million in 2019 from AED 1,041million in 2018
• 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 compared to AED 2 million in 2018
• Board of Directors recommended a cash dividend of 3 fils per share; and it is the first cash dividend since SALAMA’s IPO

Islamic Arab Insurance Company (“Salama”), the UAE’s largest and oldest takaful provider, announced its audited financial results for the year ended 31 December 2019, reporting a net profit of AED 55 million. The Gross Written Premium grew by 6.25% to reach AED 1,106 million in 2019 compared to AED 1,041 million in 2018. SALAMA’s focus on improving the quality of risk underwritten while maintaining a delicate balance on the topline growth has led to the improvement in the underwriting profit, which grew from AED151 million in 2018 to AED183 million in 2019.

For the first time since its listing on the Dubai Financial Market, the board of SALAMA has recommended a cash dividend of 3 fils per share to its shareholders.

SALAMA’s subsidiaries in Egypt and Algeria also reported stellar growth in underwriting income. Egypt’s Non-life and Life takaful companies showed an increase of 74% and 52% respectively, while SALAMA Assurances in Algeria reported growth of 80% in the underwriting income.

In 2019, the shareholders of SALAMA elected a new board that implemented a multifaceted strategy focused on increased profitability, consolidation and improvement of the investment portfolio, and enhanced corporate governance aimed at SALAMA’s long term and sustainable growth.

As part of this strategy, SALAMA substantially overhauled its investment portfolio in 2019, repositioning its investment portfolio to low volatility and high-quality income-generating assets that generate consistent risk-adjusted cash income. The investment income is expected to be an essential component of overall profitability in the coming years. The board has also directed the management to aggressively scrutinize and claw back a legacy portfolio of low yield investments in “Mudarabah” structures with non-regulated counterparties.

SALAMA’s strong business practices, customer-focused product offerings and technology-driven solutions have led S&P to improve SALAMA’s rating to BBB with a stable outlook. S&P also recognized SALAMA’s AAA-rated capital adequacy.

Commenting on the results, SALAMA’s Chairman Jassim Alseddiqi commented: “SALAMA’s performance in 2019 is the outcome of the board’s relentless strive to improve the underwriting and balance the investment portfolio across the group. During 2019, we pared down exposure to risky assets and began the process of moving the portfolio to stable and conservative cash income producing assets. The current COVID-19 pandemic situation has left us all to make extraordinary decisions amid mounting challenges. Our medical and life underwriting portfolios are substantially derisked through prudent reinsurance treaties. We remain positive and optimistic about long term growth of Takaful sector and continue to assess various organic and inorganic growth opportunities.”

10/02/2020 – Islamic Arab Insurance Company (SALAMA) Posts AED 55 Million Net Profit for 2019

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. 

11/11/2019 – Islamic Arab Insurance Company (SALAMA) reports 15.7% increase in 9-month 2019 Net Profit

• Gross written premium increased by 13.6% to Dh901m in Q3 2019
• 9-month year to Q3 Net profit increased by 15.78% to Dh34.9m

Islamic Arab Insurance Company (“SALAMA”), listed on the Dubai Financial Market, has shown consistent growth in net profit over the last three quarters of 2019 and has reported 13.6% growth in gross contribution, attributing to a total of Dh901m in gross contribution for 9-month 2019 compared to Dh793m in 9-month 2018.

As one of the UAE’s largest Takaful solutions provider, in its fortieth year of operations, SALAMA reported a net profit of Dh34.9m for 9-month period up to Q3-2019 achieving 15.78% growth in profitability as compared to Dh30.2m for the same period last year.

Commenting on the results, SALAMA’s Managing Director Mustafa Kheriba said, “The continued growth in net profit over the last three quarters and over all increase in gross written contribution in 2019, reflects our consistent and focused efforts in enhancing operational and distribution capabilities across channels. We are confident that we will end this year keeping in line with our consistent performance so far. Our focus remains on continuously aligning our service propositions to the existing regulatory landscape, customer needs and being the partner of choice for our distributors”.

SALAMA serves individual customers and institutions in the UAE, Saudi Arabia, Egypt, Jordan, Algeria and Senegal through its extensive network of subsidiaries and associates. The company offers a comprehensive range of family, motor, general and health Takaful solutions.

07/08/2019 – SALAMA 2019 half-year net profit increases 4.7% to AED 33.3m and calls for General Meeting to increase foreign ownership to 49% and GCC to 100%

Islamic Arab Insurance Company, listed as “SALAMA” on DFM, announced its interim results for the first six months of 2019 to June 30, 2019.

Highlights:

– Gross written premium (GWP) grew by 18.8% from AED 547m in H1 2018 to AED 650m in H1 2019.

–  Net profit reported for H1 2019 increased to AED 33.3m from AED 31.8m in H1 2018.

– Plan holder’s assets under management (AUM) increased by 20% in the six months from January 1 to June 30, 2019, when compared to Dec 31, 2018.

SALAMA reported significant growth of 18.8% in gross written contribution with continued momentum in net profit. The results highlighted an increase in SALAMA’s total assets, with a 20% increase in assets under management.

SALAMA has continued to deliver growth in gross written contribution with improved underwriting performance and sustained profitability. It remains committed to providing innovative solutions and seamless service to customers and partners while enhancing shareholder returns.

SALAMA has already embarked on its plan to improve the existing Investment portfolio across all subsidiaries by moving away from unrated speculative-grade instruments. The restructuring planned may have a short-term impact but will improve the overall investment risk profile in the long run and enhance investment income.

The efforts made thus far have contributed to SALAMA’s rating upgrade from BBB- in 2018 to BBB with a stable outlook in 2019. SALAMA stands as the largest sharia’h compliant Takaful insurer with ‘AAA’ level capital adequacy.

The board of directors called for General Meeting of Shareholders to vote on increasing foreign ownership cap from 25% to 49% and open GCC ownership to 100% subject to regulatory approvals. The board of directors also expressed its aspirations of full foreign ownership laws to be implemented for insurance companies in UAE.

21/07/2019 – S&P Upgrades SALAMA’s Rating to BBB, maintains Stable outlook

Islamic Arab Insurance Company (“SALAMA”) welcomes Standard and Poor’s Global Ratings (“S&PGR”) move to upgrade the financial strength and issuer credit rating of SALAMA from ‘BBB-‘to ‘BBB’ with stable outlook.

The rating reflects SALAMA’s position as the largest Sharia-compliant insurer in the UAE with ‘AAA’ level capital adequacy.

SALAMA posted impressive revenue growth of 25% with net income of AED18 million in the first quarter of 2019. S&PGR looked into SALAMA’s efforts to improve its investment portfolio and efforts to move away from unrated speculative-grade instruments. Positive factors such as improved operating performance in last two years including in Q1-2019 and net combined ratio (loss and expense) of 97% contributed to the upgrade.

Commenting on the upgrade, SALAMA’s Managing Director, Mustafa Kheriba said, “SALAMA’s position as the UAE’s largest Takaful operator and strong Q1-2019 performance reflects our relentless efforts to further Takaful growth in the region. We thank our partners, employees and shareholders for their support to achieve this rating upgrade”.

16/05/2019 – Islamic Arab Insurance Company (SALAMA) Reports 9% Growth in Q1 2019 Profit

• Gross written premium increased by 25% to Dh358m in Q1 2019
• Net profit increased by 9% to Dh18m in Q1 2019

Islamic Arab Insurance Company (“SALAMA”), one of the UAE’s largest Takaful solutions provider, has reported 25% growth in gross contribution, attributing to a total of Dh358m in gross contribution for Q1 -2019 versus Dh286m in Q1-2018.

Listed on the Dubai Financial Market and entering its fortieth year of operation, SALAMA’s Net Profit reached Dh18m marking an increase of 9% as compared to Dh16.5m for the same period last year.

Commenting on the results, SALAMA’s Managing Director Mr. Mustafa Kheriba said, “SALAMA has been prudent with its performance and effective in its distribution strategies, with key focus on service offering and customer experience. We are off to a good start in 2019 and are confident to continue the growth momentum, as we keep our commitment to innovation, strong leadership and operational excellence”.

Mr. Kheriba also added “SALAMA is poised to facilitate Takaful growth and expansion in the region, providing sustainable solutions that adhere to the highest ethical standards. We prudently manage risk and keep strong underwriting controls and checks to ensure our customers enjoys peace of mind at a fair price”.

SALAMA serves individual customers and institutions in the UAE, Saudi Arabia, Egypt, Jordan, Algeria and Senegal through its extensive network of subsidiaries and associates. The company offers a comprehensive range of family, motor, general and health Takaful solutions.

 01/04/2019 – Established UAE Takaful Company Reports Significant Increase In Its Top-Line

SALAMA Islamic Arab Insurance Company, one of the UAE’s largest and oldest Shari’ah compliant Takaful solutions providers, has reported financial results for the twelve-month period ending December 31, 2018.

Listed on the Dubai Financial Market and entering its fortieth year of operation, SALAMA has posted double-digit growth in 2018 despite the insurance companies listed on UAE stock exchanges reporting less than 1 per cent growth in written premium during the same period.

2018 witnessed year-on-year gross written premium in the UAE slowing to less than 1 per cent, a significant decline compared to the 12 per cent reported in 2017. In contrast to the market’s overall performance, SALAMA’s premium income increased by 30 per cent. The market-beating growth of the top-line, which reached Dh1.063bn in 2018, was bolstered by SALAMA’s effective distribution strategies, a company-wide focus on customer retention and increased efficiencies across its service offering to customers and partners. The company further reported underwriting income increased by Dh10m to Dh151m, highlighting SALAMA’s operational success.

As the region’s awareness of Shari’ah compliant insurance grows, the UAE’s Takaful industry has expanded. In 2018, SALAMA remained focused on its customers and partners, providing sustainable solutions that adhere to the highest ethical standards. SALAMA’s customers rely on the company to provide peace of mind at a fair price – and it delivers just that.

In contrast to top-line income exceeding Dh1bn, the bottom line suffered a decline due to investment losses and discontinued operations.  However, SALAMA is confident the corrective measures and strong controls now in place will see the company continue to strengthen its position in 2019.

Despite the challenging market conditions in the region, SALAMA has remained strong and resilient. The company will continue to nurture those areas of the business that will significantly contribute to its profitability. Through strong leadership and commitment to innovation across a wide range of segments, SALAMA will remain a market leader in the UAE’s Takaful sector. The ADFG/Goldilocks have recently become the single largest shareholder of SALAMA, which will further strengthen SALAMA position as market leader in Takaful in UAE.

S&P Global Ratings predicts key drivers of premium growth in 2019 will be the adoption of a Dh50bn multi-year stimulus package adopted in Abu Dhabi aimed at increasing infrastructure and investments in Dubai in the period leading up to Expo 2020. Furthermore, Insurance Authority UAE is very active in developing and implementing insurance and Takaful regulations. With the introduction of more stringent regulations within the UAE’s insurance sector, the country will continue to see improvements that will benefit both companies and policyholders.

SALAMA serves individual customers and institutions in the UAE and, through its extensive network of subsidiaries and associates across Saudi Arabia, Egypt, Jordan, Algeria and Senegal. The company offers a comprehensive range of family, motor, general and health Takaful solutions.

 09/11/2011 – Upgraded SALAMA/Islamic Arab Insurance’s ratings to “A-” with a stable outlook

Standard & Poor’s has raised to ‘A-‘, up from ‘BBB+’ the counterparty and insurer financial strength of Dubai based Islamic Arab Insurance as well as the core operating subsidiaries of its wholly owned Labuan-based reinsurance sub-group. The outlook is stable.The ratings principally reflect the Salama/IAIC group’s strong capitalization, strong consolidated business position, and now strong and stable underwriting performance. Partially offsetting factors include investment strategies that are assessed as good, but which are nonetheless relative weaknesses because they introduce potential volatility through significant exposures to equity and property assets. Additionally, our analysis reflects the potential industry and economic risks relating to certain regions and lines of business in which the group is active.

The group enjoys a strong and still-developing business position with significant insurance operations in the United Arab Emirates (UAE), Algeria, Egypt, Senegal, Saudi Arabia, and Jordan. The business profile of the group also benefits from the strong, inward reinsurance franchise maintained by its wholly owned subsidiary, BEST RE, which writes inward reinsurance in over 60 countries across Asia, the Middle East, and Africa.

Consolidated group capitalization is also strong relative to risks; total shareholders’ funds at end-June 2011 were UAE dirham (AED) 1,634.7 million (including AED47.1 million of minority interests and AED191.5 million of intangible items). The quality of capital is deemed high, exhibiting only modest use of debt and little reliance on the revaluation of investments. Prospective risk-based capitalization is likely to remain at least strong, and the forecast position as of end-2011 is extremely strong. In S&p’s view, reinsurance protection is satisfactory, while reserving is appropriate relative to the short-tail, stable insurance, and inward reinsurance exposures underwritten by the group.

Operating performance across the group is also now strong. The group has displayed particularly stable underwriting results even across economic and industry cycles. The group’s net combined ratios have continued to cluster around the five-year average of 95.9%, despite current “soft” inward reinsurance terms constraining BEST RE in many regions. This is indicative of prudent risk selection.

Investments are regarded as good by S&P. However they are also potentially volatile given the significant, AED694.7 million holding of equities and the similarly significant AED279.4 million invested in properties reported at end-June 2011. The strong capital base of the group and the fact that a significant proportion of these equities are mutual fund assets for family takaful (life and savings) policyholders are offsetting factors. However, the significant levels of market risk leads S&P to regard the investment strategy as a relative weakness in the overall assessment of the group’s otherwise strong financial profile.

The stable outlook reflects the view that Salama/IAIC, its subsidiaries, and affiliates will together continue to enhance the group’s strong business and financial profiles. S&P anticipates that they will do so through a combination of selective business expansion and improving earnings; overall net income is expected to be about AED110 million for the whole of 2011. Gross and net premium income are both expected to increase by not more than 20% annually over the two-year outlook period, while net combined ratios are forecast to remain stable at about 95%.

S&P expects the group to continue to diversify geographically and by line of business. The ratings agency anticipates particular growth in UAE life activities and in the Saudi Arabian and Algerian insurance operations, as well as at BEST RE. Capitalization and quality of capital are expected to remain a particular strength. Modeled risk-based capital outcomes are likely to remain at least strong prospectively, and probably very strong as retained earnings largely offset any strains associated with forecast business growth. However, the group management is expected to increase paid-up share capital at BEST RE to $200 million in 2012, up from the current level of $150 million.

Any rating uplift is viewed as remote in the next two years. However, ongoing improvements in earnings and business position could ultimately prove supportive of a higher rating. This would particularly be the case if, at the same time, revenues become better balanced between the group’s insurance and reinsurance activities. S&P could take a negative rating action if earnings fall below expectations, or if the group fails to maintain strong capitalization, in line with expected growth in underwritten and investment risk exposures.

30/11/2009 – SALAMA Group Commentary on the Consolidated Results For the 1st Qtr 2010

SALAMA achieved 28% growth in premiums in the first quarter of 2010 reaching AED 526 M vs. AED 411 for the same quarter last year. In general, performance and operating efficiency across all subsidiaries in Takaful operations have improved considerably and their net results are impressive, however these good results were hard hit by the negative results from Best Re (SALAMA Retakaful arm) and hence the net results were negative of about AED 7 Million..

The negative result of Best Re was mainly due to an unusual deterioration in the underwriting results emanating from the Far East business. This resulted mainly from a series of large individual losses (in excess of US$ 500K each) reported from the Philippines, Indonesia, China and South Korea. This, combined with an adverse development in respect of two major catastrophe events (Padang earthquake in Indonesia, and Typhoon Ketsana, which hit the Philippines) seriously contributed to this disappointing underwriting performance.

This situation is deemed exceptional. Underwriting remedial actions have already been triggered but it was too early to reap the benefit of such measures. In terms of exposure in catastrophe prone territories such as Indonesia and the Philippines our commitments were cut down. Chronically underperforming accounts were also discontinued.

The two major events referred to above seem to have now stabilized and no material adverse development is anticipated and hence barring no further adverse events occurring in 2010, it is expected that this exceptional situation shall be recouped in the coming quarters and before year-end.

10/08/2009 – SALAMA Celebrates 30 Years of Success and Grabs 3 Prestigious Awards

Global award coincides with SALAMA’s 30th anniversary, recognizes unique Takaful products and solutions.

SALAMA CEO Dr Saleh Malaikah honoured for Outstanding Contribution.

SALAMA-Islamic Arab Insurance Co. (PSC), one of the region’s leading Islamic insurance (Takaful) companies, has won the ‘Best Takaful Provider’ award for 2009 from Global Finance magazine, the leading international financial publication headquartered in New York.

The recognition reaffirms SALAMA’s leadership in the Takaful Insurance milieu and is a major milestone in the company’s unprecedented success as it marks its 30th anniversary celebrations this year.

Reinforcing the company’s global presence and leadership in the International Takaful insurance sector, SALAMA was also awarded the ‘Best Takaful Company’ at the recently held International Takaful Awards in London and SALAMA’s Vice-Chairman and CEO,Dr Saleh Malaikah was conferred the prestigious ‘Outstanding Contribution award at the high-profile awards ceremony.

“We are very proud to have been bestowed with these prestigious awards and am humbled by the personal recognition given to me”, said Dr. Saleh Malaikah, Vice Chairman and CEO, SALAMA. “This achievement is undoubtedly the fruit of relentless efforts exerted by our entire team whose focus is to make SALAMA the first choice when it comes to Shari’ah compliant insurance solutions.”

“It is great honour to receive such top industry awards which coincide with our 30th anniversary celebrations. The only trigger behind this irrefutable success is our quality of service and the customer-centric approach imbedded in our culture. We thank all our stakeholders and business associates for making this possible,” added Dr Malaikah.

Rafiq Halani, General Manager, General and Health at SALAMA, said: “This honour bestowed by Global Finance is indeed a prestigious moment for SALAMA. In addition to this, the outstanding achievement award to Dr Malaikah is well deserved. Apart from heading the leading Takaful compliant company in the world, Dr Malaikah has been fostering the global conversion towards Shari’ah compliant insurance solutions.”

Commenting on these awards, Noel D”Mello, General Manager- Family Takaful said, “We are delighted to be recognized as leaders in the Takaful Industry. We continuously strive to bring innovative Takaful products to the market which is well received by Distributor and Clients alike. Our turnaround times for servicing are well recognized in the Industry and with these awards we are even more determined to raise the bar.

SALAMA has one of the most comprehensive ranges of Family Takaful products and services across the Middle East. Since its inception, the company has maintained a high level of transparency and disclosure and has facilitated its charging structure to enable its customers to accomplish their transactions with ease and convenience.

The Global Finance magazine has a circulation of 50,050, audited by BPA, and readers in 163 countries. Its headquarters is in New York, with offices in London, Rio de Janeiro and Milan. Global Finance’s audience includes Chairmen, Presidents, CEOs, CFOs, Treasurers and other senior financial officers responsible for making investment and strategic business decisions at multinational companies and financial institutions.

About SALAMA Islamic Arab Insurance Company

SALAMA–Islamic Arab Insurance Company embarked from Dubai on its quest for expansion through acquisitions and participation in a number of Takaful and Re-Takaful companies in many Arab and Islamic countries. Today SALAMA is the largest Takaful and Re-Takaful Group in the world with a capital of USD 300 million (in excess of AED 1 billion). Its financial strength can be gauged by the “A-” rating that it received from AM Best and “BBB+” by S&P. Among the prominent subsidiaries of SALAMA, is the wholly owned Tunisia-based BEST Re, the largest global Re-Takaful company, serving customers in more than 70 countries.

27/07/2009 – SALAMA Changes Trading Symbol at DFM

Dubai, July 22nd 2009 – The Islamic Arab Insurance Company, leading provider of Shari’ah compliant insurance solutions around the world has decided to change its trading symbol at the Dubai Financial Market from “IAIC” to “SALAMA”.

“The move came as a natural result of the great success achieved by the name SALAMA in the UAE and abroad”, said Chairman Dr. Saleh Malaikah. “The company has managed over the years to build a very strong brand equity that transcended boundaries; as such, we believe it is about time we revisited our trading symbol to leverage the well-known SALAMA icon”.

In fact, since its inception, the Islamic Arab Insurance Company has successfully strived to reshape the scene of Shari’ah compliant insurance solutions across the region, setting new standards for the industry. The company’s key strength revolves around a customer-centric methodology, a rigorous system and an innovative approach.

“We are thankful to the positive feedback and prompt support we received from the Dubai Financial Market, who duly handled the necessary procedures in order to ensure a smooth and successful name reshuffling”, added Malaikah.

SALAMA has one of the most comprehensive ranges of Family Takaful products and services across the Middle East. The company has consistently maintained a high level of transparency and disclosure and has facilitated its charging structure to enable its customers to accomplish their transactions with ease and convenience.

About SALAMA Islamic Arab Insurance Company
SALAMA–Islamic Arab Insurance Company embarked from Dubai on its quest for expansion through acquisitions and participation in a number of Takaful and Re-Takaful companies in many Arab and Islamic countries. Today SALAMA is the largest Takaful and Re-Takaful Group in the world with a capital of USD 300 million (in excess of AED 1 billion). Its financial strength can be gauged by the “A-” rating that it received from AM Best and “BBB+” by S&P. Among the prominent subsidiaries of SALAMA, is the wholly owned Tunisia-based BEST Re, the largest global Re-Takaful company, serving customers in more than 70 countries.

31/03/2009 – Directors’ report and consolidated financial statements

Directors’ report and consolidated financial statements for the year ended 31 December 2008.

06/11/2008 – SALAMA signs a strategic alliance with NCB Capital to offer Shari’ah compliant funds to UAE customers

Dubai, UAE: SALAMA Islamic Arab Insurance Company, the world’s largest Takaful and Re-Takaful group, announced its strategic alliance with NCB Capital, the investment banking arm of National Commercial Bank, the region’s largest bank, in a bid to further promote the spread of Shari’ah compliant insurance solutions. As a result of the strategic alliance, SALAMA will offer its customers a host of Shari’ah compliant, open-ended, unit-linked funds through regular savings and protection plans, with a minimum contribution of AED200 per month.

Commenting on the announcement, Mr. Noel D’Mello, Head of Family Takaful, SALAMA, said: “In the current global financial crisis environment, most investors are skeptical about investing single contributions for the short term. SALAMA’s products are designed for regular systematic savings for the medium and long term and are therefore being well received. We continue to expand and diversify our product offerings by allying with other equally strong service providers. This tie-up with NCB Capital further strengthens our presence in the UAE market and helps us to promote Shari’ah Compliant savings and insurance products.”

A pioneer in investment banking in the region, NCB Capital has around USD 14 billion of assets under management and launched the world’s first Sharia-compliant real estate fund. It has a wide range of funds covering all asset classes which it offers to its approximately one million clients.

Mohamed Seif-El Nasr, Head of Asset Management at NCB Capital, said, “As one of the world’s largest Shariah-compliant mutual fund managers with a significant track record spanning many years, we feel privileged to ally with an equally long-established leader in the Takaful and re-Takaful industry. We look forward to working closely with SALAMA in spreading innovative and world class Shari’ah compliant investment solutions within the UAE and regionally.“

The strategic alliance agreement involves SALAMA’s subscription to 16 NCB Capital mutual funds including three Al-Manarah fund-of-fund portfolios. The specific portfolios vary in risk profile and benefit from diversification of geographies, asset classes, currencies and fund management styles.

About SALAMA-Islamic Arab Insurance Company

• SALAMA, pioneers of Shari’ah compliant insurance enjoys both Arab and international presence.

• Established in 1979 in Dubai, SALAMA has become the largest Takaful & Re-Takaful group in the world with a paid up capital of USD300 million (AED 1.1 billion).

• It enjoys strong credit rating of ‘A-’ from A.M. Best and ‘BBB+’ from S&P. These ratings clearly reflect the Company’s growth, financial strength and investor confidence.

• SALAMA offers customized and high quality yet affordable Takaful solutions to individuals, families and companies.

29/09/2008 – SALAMA ties up with DWS Investment to make world class Shari’ah Compliant funds accessible to its customers throughout UAE

Dubai, UAE: SALAMA Islamic Arab Insurance Company, world’s largest Takaful and Re-Takaful Group, announced their partnership with DWS Investments, the global mutual fund arm of Deutsche Bank Group. SALAMA presents a comprehensive range of diverse Shari’ah compliant unit linked insurance products to its valued clients and the DWS Noor Islamic Funds can be accessed through these products.

As a result of the strategic tie up, SALAMA will offer its customers a host of DWS Noor Islamic Funds which are 100% Shari’ah Compliant and diversified by asset class and geography.

Speaking on the announcement, Mr. Noel D’Mello, Head of Family Takaful, SALAMA, said: “Our partnership with DWS Investments signifies another landmark achievement for SALAMA in further promoting Shari’ah Compliant savings and insurance products in the UAE. It will greatly help in achieving our objective of spreading Shari’ah Compliant insurance plans throughout UAE that are not only competitive in pricing but also flexible and affordable to meet the needs of the average person.”

With Euro 257 billion of assets under management globally, DWS is one of the top 10 largest mutual fund managers worldwide1 and the largest mutual fund company in its home country, Germany2. According to Mr. Tarek Lotfy, Director Asset Management, Middle East and North Africa, Deutsche Bank, “We are proud to have this alliance with SALAMA, UAE’s leading and specialized Takaful Company. SALAMA’s credibility, reputation for quality, diversified product range and high standards, make them our partner of choice in spreading innovative and world class DWS Shari’ah compliant investment solutions.”

About SALAMA-Islamic Arab Insurance Company

SALAMA, pioneers of Shari’ah compliant insurance enjoys both Arab and international presence. Established in 1979 in Dubai, SALAMA has become the largest Takaful & Re-Takaful group in the world with a paid up capital of USD300 million (AED 1.1 billion). It enjoys strong credit rating of ‘A-’ from A.M. Best and ‘BBB+’ from S&P. These ratings clearly reflect the Company’s growth, financial strength and investor confidence. SALAMA offers customized and high quality yet affordable Takaful solutions to individuals, families and companies.

DWS Investments

Established over 50 years ago in Germany, DWS Investments is the leading mutual fund company in Germany² and a top ten global player¹, with €257 billion assets worldwide. Over the last few years we have seen the global rollout of the DWS brand, covering countries and products across Europe, the United States, Asia Pacific and the Middle East. As a part of the Deutsche Bank Group, we draw on the expertise of one of the largest banks in the world. DWS Investments has pursued a consistent and successful business strategy focusing on performance, innovation, quality and trust. The superior quality of DWS Investments is widely recognized across all major financial markets, with independent rating agencies consistently confirming the exceptional performance of our products. In 2007, for example, DWS Investments in Germany won the Standard & Poor’s Fund Award in the “Larger Groups” category for the 13th consecutive year.

• SALAMA, pioneers of Shari’ah compliant insurance enjoys both Arab and international presence.

• Established in 1979 in Dubai, SALAMA has become the largest Takaful & Re-Takaful group in the world with a paid up capital of USD300 million (AED 1.1 billion).

• It enjoys strong credit rating of ‘A-’ from A.M. Best and ‘BBB+’ from S&P. These ratings clearly reflect the Company’s growth, financial strength and investor confidence.

• SALAMA offers customized and high quality yet affordable Takaful solutions to individuals, families and companies.

22/09/2008 – SALAMA ties up with BNP Paribas Investment Partners to provide a bouquet of Shariâ’ah compliant funds to its customers.

SALAMA, the world’s largest Takaful and Re-Takaful Group ties up with BNP Paribas Investment Partners, one of the leading asset managers, to offer BNP Paribas’s flagship Islamic Fund, the Global Equity Optimiser, with investor returns linked to Shariah compliant global equity markets, including Asia, Europe and the USA. The fund uses an actively managed optimization strategy which has consistently outperformed the global benchmark, the Dow Jones Islamic Market Titans 100 Index. SALAMA is pleased to provide it’s customers with Shari’ah compliant insurance together with value added investment services that can cater to clients long term investment needs, which are compliant to Shari’ah principles. SALAMA presents an assembly of diverse Shari’ah compliant unit linked insurance products to its discerning clients and with BNP Paribas’s asset management services it is possible to offer the best of class Shari’ah compliant investment opportunities.

Mr. Noel D’Mello, the Head of Family Takaful, SALAMA, commented, “SALAMA has entered into several tactical tie ups with renowned Islamic Fund Investment companies and distributor alliances to spread Shari’ah compliant savings and insurance products within the UAE. We are particularly delighted to have entered into collaboration with BNP Paribas Investment Partners to allow the public to have access to a gloablly recognized and award winning Islamic fund through our local presence.”

BNP Paribas has taken the lead, and has been the first to develop a Shari’ah compliant global equity optimisation strategy, that has historically always outperformed the benchmark, not only during bull markets of 2006 and 2007, but also during the recent bear market conditions in 2008.

On the occasion, Muneer Fulayfil, Director – Middle East & Africa of BNP Paribas Investment Partners, commented: “We are committed to the development of local products and Islamic funds, like the Shari’ah compliant Global Equity Optimizer, which won the Failaka award for Best Global Fund in 2007 for its strategy and excellent performance track record. Since its inception, the fund has returned close to 25% to its investors.’’ He added: “We are very pleased to collaborate with SALAMA, the largest Takaful and Re- Takaful player in the region Their offering of BNP Paribas linked investments, is one of a series of ties aimed at providing innovative solutions for our growing customers seeking Takaful and Re-Takaful solutions.”

About SALAMA Islamic Arab Insurance Company

SALAMA, pioneers of Shari’ah compliant insurance enjoys both Arab and international presence. Established in 1979 in Dubai, SALAMA has become the largest Takaful & Re-Takaful group in the world with a paid up capital of USD300 million (AED 1.1 billion). It enjoys strong credit rating of ‘A-’ from A.M. Best and ‘BBB+’ from S&P. These ratings clearly reflect the Company’s growth, financial strength and investor confidence. SALAMA offers customized and high quality yet affordable Takaful solutions to individuals, families and companies.

About BNP Paribas

BNP Paribas (www.bnpparibas.com) is a European leader in global banking and financial services and is one of the 4 strongest banks in the world according to Standard & Poor’s. The group is present in over 85 countries, with almost 168,000 employees, including 129, 500 in Europe. The group holds key positions in three major segments: Corporate and Investment Banking, Asset Management & Services and Retail Banking. Present throughout Europe in all of its business lines, the bank’s two domestic markets in retail banking are France and Italy. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.

15/09/2008 – SALAMA Ties Up with National Bank of Fujairah to provide its Clients with a Bouquet of Comprehensive Takaful Solutions

SALAMA-Islamic Arab Insurance Company, the largest global Takaful and Re-Takaful Group, has signed a long-term agreement to pursue the bancassurance partnership with National Bank of Fujairah (NBF). The partnership will offer NBF customers access to a range of high quality yet affordable individual family Takaful solutions across the region.

Noel D’Mello, Head of Family Takaful, SALAMA said “This strengthens our position in the UAE and offers good opportunities for growth. NBF is a very well-established and successful bank. We will bring our bancassurance experience to become NBF’s first ever takaful partner”. He also added that “By combining SALAMA’s takaful insurance expertise with NBF’s distribution capability, we are confident of ensuring the future success and development of Shari’ah compliant insurance solutions in the UAE market.”

Steve Mullins CEO, National Bank of Fujairah commented “We were looking for a partner who would help us achieve our objectives of being a leading player in the takaful distribution market. We envisaged a partner who was not just a leader in bancassurance, but also in Shari’ah compliant insurance solutions. In our search, SALAMA was identified as a suitable partner and has capabilities and systems that will enable us to offer a range of products to our customers.” Mr. Mullins also added “SALAMA has one of the most comprehensive range of takaful solutions for individuals and families – be it investment plans, or protection or a combination of both. We are confident that with this range of solutions, we will be able to cater to the needs of our valued customers.”

About SALAMA Islamic Arab Insurance Company

SALAMA, pioneers of Shari’ah compliant insurance enjoys both Arab and international presence. Established in 1979 in Dubai, SALAMA has become the largest Takaful & Re-Takaful group in the world with a paid up capital of USD300 million (AED 1.1 billion). It enjoys strong credit rating of ‘A-’ from A.M. Best and ‘BBB+’ from S&P. These ratings clearly reflect the Company’s growth, financial strength and investor confidence. SALAMA offers customized and high quality yet affordable Takaful solutions to individuals, families and companies.

02/09/2008 – A.M. Best affirms SALAMA’s ratings of “A-” (Excellent); expects net profit of AED 180 million.

Group’s gross premium likely to spurt by 35% in 2008

Dubai, 2008: SALAMA-Islamic Arab Insurance Group, the world’s largest Takaful and Re-Takaful Group, today announced that the world’s top credit rating agency A.M. Best has affirmed the group’s Financial Strength Ratings to ‘A-’ (Excellent) and Issuer Credit Rating (ICR) to ‘a-’.

“The outlook for both ratings remains stable,” the agency said. “A.M. Best anticipates SALAMA to maintain a good operating performance, with annual post-tax profit in the range of US$ 40-50 million per annum over the next two years. The impressive ratings reflect SALAMA’s strong risk-adjusted capitalization, supported by good operating performance and growing business portfolio.”

The credit rating agency expects SALAMA to maintain a stable combined ratio of approximately 96% coupled with a strong investment income. The group’s gross premiums are expected to increase by around 35% in 2008 and 30% in 2009, the agency added.

In his comments on the ratings, Dr. Saleh Malaikah, Vice Chairman and CEO of SALAMA, said: “The ratings for SALAMA by A.M. Best further reinforces our growth strategy and will have a positive impact on our business in the changed investment milieu in the GCC. The FSR and ICR ratings are an endorsement of our strategic plans and will further boost our financial capabilities and creditworthiness.”

He added: “The affirmation of our ratings is a reflection of the strength and quality of our Takaful and Re-Takaful products and services as we look to further expand our presence across the GCC and beyond. It is also a major impetus to the UAE government’s transparent policies in market regulation and efforts to promote economic growth and stability.”

According to the agency, SALAMA’s current and prospective risk-adjusted capitalization remains at a strong level. In 2007, SALAMA utilized its risk-adjusted capitalization aggressively mainly due to changes in the investment strategy. A.M. Best believes that SALAMA’s risk-adjusted capitalization will stay at similar levels as in 2007 and is expected to maintain its strong position supported by a medium risk profile and full retained earnings.

SALAMA’s investment strategy is still conservative, the agency said, adding that the group and its subsidiaries have a solid business profile in their traditional territories — Far East, Africa, Middle East and Central Asia, which is further improving with geographical expansion, business growth and introduction of new life lines.

Founded in 1899, A.M. Best is a global full-service credit rating organization dedicated to serving the financial and healthcare service industries, including insurance companies, banks, hospitals and healthcare system providers.

20/08/2008 – AM Best has reaffirmed SALAMA’s rating of A- “Excellent”.

OLDWICK, N.J., AUGUST 18, 2008

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR) of “a-” of SALAMA Islamic Arab Insurance Company (P.S.C.) (SALAMA) (United Arab Emirates). The outlook for both ratings is stable.

The ratings of SALAMA reflect its strong risk-adjusted capitalisation, supported by very good operating performance, and its solid and improving business profile.

In A.M. Best’s opinion, SALAMA’s current and prospective risk-adjusted capitalisation remains at a strong level. SALAMA in 2007 utilized its risk-adjusted capitalization aggressively mainly due to changes in the investment strategy as well as a significant growth in the company’s consolidated business portfolio. Going forward, A.M. Best believes that SALAMA’s risk-adjusted capitalisation is to stay at similar levels as in 2007 and is expected to maintain its strong position supported by a medium risk profile and full retained earnings.

A.M. Best anticipates SALAMA to maintain a very good operating performance, with annual post tax profit being in the range of USD 40-50 million per annum over the next two years. A.M. Best also expects the company to maintain a stable combined ratio of approximately 96% and strong investment income. SALAMA’s investment strategy changed in 2007, with a higher proportion of investments being placed in marketable and private equities; however, in A.M Best’s view, it is still conservative.

A.M. Best believes SALAMA and its subsidiaries have a solid business profile in their traditional territories (Far East, Africa, Middle East and Central Asia), which is further improving with geographical expansion, business growth and introduction of new life lines. A.M. Best anticipates group gross premiums written to increase by around 35% in 2008 and 30% in 2009.

15/06/2008 – SALAMA joins hands with Oasis Crescent to Provide the public with convenient and affordable access to Sharia’ah compliant funds

Aiming to spread Shari’ah compliant insurance on one side and on presenting open ended, unit linked funds on the other, SALAMA Islamic Arab Insurance Company, the world’s largest Takaful and Re-Takaful Group joins hands with Oasis Crescent, the winner of the Best Global Equity Fund. SALAMA presents an assembly of diverse Shari’ah compliant unit linked insurance products to it’s discerning clients and the funds of Oasis Crescent can be accessed through these products for as little as AED 200 per month.

Commenting on this strategic tie up, Mr. Noel D’Mello, the Head of Family Takaful, SALAMA, said, “SALAMA has entered into several strategic tie ups with eminent Islamic Fund Management companies and distributor alliance to spread Shari’ah compliant savings and insurance products within the UAE. We are particularly pleased to have entered into collaboration with Oasis Crescent to allow the public to have access to the funds from this award winning Fund Management Company through our products.”

Mr. Parvaiz Siddiq, General Manager SALAMA on this occasion commented “SALAMA has always endeavored to make quality and affordable Takaful solutions accessible to the people of the UAE with the distinct purpose of spreading Shari’ah compliant insurance solutions in the country. Our tie-up with Oasis Crescent is one more step in this direction.”

Being part of Oasis Group, the holders of the Best Global Equity Fund award for three years, Oasis Crescent was created to provide financial products and services to cater for the needs of investors looking for long term capital growth and a high level of asset protection.

From his side Mr. Usman Butt, Group Executive, Regulatory & Compliance, Oasis Group Holdings (Pty) Limited said: “We are proud to have this alliance with SALAMA the largest Takaful and Re-Takaful player in the region. This will further assert the religious, cultural and ethical beliefs of our organization through the spread of the Shari’ah compliant insurance and investment solutions in the country and provide our clients with protection plans that abide by the Shari’ah.”

SALAMA will be able to provide its customers open ended, unit linked Shari’ah compliant funds through regular savings and protection plans with the minimum contribution of 200 AED per month, thereby offering an extensive range of funds diversified by asset class and geography.

About SALAMA Islamic Arab Insurance Company

SALAMA Islamic Arab Insurance Company embarked from Dubai on its quest for expansion through acquisitions and participation in a number of Takaful and Re-Takaful companies in many Arab and Islamic countries. Today SALAMA is the largest Takaful and Re-Takaful Group in the world with a capital of AED1.1 billion. Its financial strength can be gauged by “A-” rating that it received from AM Best and “BBB+” by S&P. Among the prominent subsidiaries of SALAMA, is the wholly owned Tunisia-based BEST Re serving customers in more than 70 countries around the globe. SALAMA is also a founder and the largest shareholder in Saudi IAIC for Cooperative Insurance.

18/02/2008 – “SALAMA” Islamic Arab Insurance Co (IAIC) Makes AED 150 Million Profits by the End of 2007

Total premium Revenue Almost One Billion AED

“SALAMA” Islamic Arab Insurance Co. (IAIC), the largest Islamic insurance (takaful and retakaful) operator in the world, has disclosed profits of AED 150 million for 2007. This was revealed in a disclosure made by the company to the Dubai Financial Market today.

SALAMA also disclosed that its takaful premium revenue reached at AED 930 at the end of 2007 compared to AED 657 million at the end of 2006, an increase of AED 273 million representing 41% jump over 2006 revenue.

Sheikh Khalid Bin Zayed Bin Sagr Al-Nahayan, Chairman of SALAMA commented: “Our company has presented a distinguished performance since its shares were listed for trade on the Dubai stock exchange one year ago. The remarkable success was not limited only to the launch of the first IPO, but we have also attained an A- Rating from one of the well distinguished and insurance focused agencies, AM BEST. We have also fully acquired the total equity of BEST Re, the largest re-takaful company in the world. These steps have contributed to expanding our geographic presence to include North Africa, especially Egypt, Algeria, Senegal and Tunisia” and last but not least Saudi Arabia where the IPO for Saudi Salama has been very successful and the company finally resumed its operations”.

From his perspective, Dr. Saleh Malaikah, the Vice Chairman and CEO of SALAMA said: “We have been blessed by Allah to obtain distinguished results for the last two years due to the company’s operational and balanced investment portfolios. We have invested during the past period in establishing new companies such as Saudi Salama and adding family takaful activities (life insurance) in UAE, Algeria, and the Senegal.

Malaikah, the Chairman of Salama KSA, added: “Saudi Salama will contribute toward increasing SALAMA UAE profits gradually and significantly. We expect strong growth during next year and following years. Based on the company’s ambitious expansion plans, we have now twelve branches in Saudi Arabia and preparing to open few more new branches during the next few months. We have also added medical insurance to our operations after having obtained a license from the Saudi Cooperative Council for health Insurance.”

Dr. Malaikah attributed the shortfall in profits by 14% from what was achieved in 2006 to two reasons, namely non-recurrent capital gains on the investment portfolio during 2006 and the impact of the unusual number of catastrophic events in 2007 on BEST Re, the major subsidiary of SALAMA. He added “Yet, we have maintained our operational profits at almost the same level of 2006. In 2007 operational profits were AED 108 million compared to AED 109 in 2006. Had it not been for the compensation that our subsidiary BEST Re had to pay out we would have achieved yet another record profits in 2007”.

SALAMA expects substantial growth during the next five years in the global takaful and re-takaful industry to reach US$ 7.5 to 10 billion, making it one of the fastest growing sectors of the financial services industry.

Dr. Malaikah explained: “We shall focus our efforts during the current year on the diversification of list of services through medical takaful and family takaful in all markets where we operate, to position ourselves to take advantage of the growing available opportunities in the global markets. We have already started family and health takaful operations not only in the UAE but also in Algeria through the Algerian SALAMA subsidiary. Also Saudi Salama has added health takaful to its activities in Saudi Arabia. Last but not least, a subsidiary has been set up in the Senegal to offer family takaful. This company is in addition to SOSAR which is also a subsidiary in the Senegal. We have also contributed towards raising the capital the Jordanian Islamic Insurance Co, a joint-stock company whose shares are traded in the Amman stock exchange, and from its capital SALAMA owns 15% . The company recently increase its capital by 100% to JOD 8 million.

SALAMA was listed on the Dubai stock exchange in September last year, which allowed raising the company’s paid capital to one billion dirham. SALAMA now includes under its umbrella six takaful companies that provide their services in 70 countries around the globe through Tunisia-based BEST Re which is the largest re-takaful company in the Islamic world. SALAMA acquired full ownership of BEST Re at the beginning of 2006 whose paid up capital is US$ 100 million.

07/01/2008 – A.M Best Upgrades SALAMA’s Financial Strength and Credit Ratings.

Dubai, January 7, 2008 : SALAMA (Islamic Arab Insurance Company), the world’s largest Takaful and Re-Takaful provider, today announced that A.M Best has upgraded the insurer’s FSR (Financial Strength Ratings) to A-(Excellent) from B++ (Good) and upgraded the ICR (issuer credit ratings) to “a-“ from “bbb+”. The outlook for both ratings remains stable. The upgraded rating included BEST Re, the largest re-takaful company, which is one of the major SALAMA subsidiaries.

Sheikh Khaled Bin Zayed Bin Sagr Al-Nahayan, the Chairman of SALAMA (Islamic Arab Insurance Company) said, “The upgraded ratings of both SALAMA Group and its subsidiary BEST Re comes concurrent with the financial improvements of the Group during 2007 due to the improved investment environment in the GCC countries generally. We expect to continue to improve our earnings in this environment”.

According to Dr. Saleh J. Malaikah, CEO, SALAMA (Islamic Arab Insurance Company), “The upgraded ratings undoubtedly will have a favourable impact on the businesses of both SALAMA and BEST Re and probably will also favourably affect the businesses of the other companies in the group. We are certainly proud of this achievement as these ratings further reinforce the financial strength and credit worthiness of SALAMA Group and its subsidiaries. The credit rating upgrade also reinforces the UAE government’s policies in regulating the market as well as promoting economic growth and ensuring social stability.”

“As part of our strategy for future growth, we have invested AED 165M in developing our insurance products base in UAE and increased the capital of one of our subsidiaries, BEST Re, from US$55M to US$100M. We believe this strategic move has contributed to the overall improvement of our A.M Best credit rating. We are also looking at further expansion plans in the GCC and even the Far East primarily in the Re-Takaful and Takaful business.” Dr. Malaikah further added.

SALAMA enjoys both Arab and international presence. The company embarked from Dubai on its quest for expansion through acquisitions and participation in a number of Takaful and Re-Takaful companies in many 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 99% shareholding in the Bahrain-based Takaful and Re-Takaful International Investment Co. (TARIIC) as well owns 51% shareholdings in the Cairo-based Egyptian Saudi Insurance Home (ESIH) in addition to 90% shareholdings in SALAMA Algeria.

About A.M.Best

A.M. Best Company is a worldwide insurance-rating and information agency with more than 100 years of history. The company was founded in 1899 by Alfred M. Best. Offices are located in the United States, the United Kingdom and Hong Kong. It is the largest and longest-established company devoted to issuing in-depth reports and financial-strength ratings about insurance organizations. In addition, A.M. Best Company is currently the sole agency providing comprehensive interactive rating services to small and mid-sized community U.S. banks. The company has also begun to issue ratings for hospitals and health care systems.

11/11/2007 – SALAMA’s Premium increase by 50% to reach AED 684 million 

Operating income increases to AED 95 million, an increase of 25% by the end of Sept 2007. 

Saudi Insurance Market to Reach SR 15 Billion Annually

The Saudi Capital Markets Authority (CMA) announced its approval to float 40% of Saudi IAIC Co for Cooperative Insurance in an IPO during the period from March 17 to 26, 2007.   among a group of five cooperative insurance companies.

On this occasion, Dr. Saleh Malaikah predicted that the volume of the Saudi cooperative insurance market could reach 15 billion riyals a year.. This prediction was made within the context of of Dr. Malaikah’s comments welcoming the CMA announcement. In his capacity as chairman of Saudi IAIC.

 Dr. Malaikah indicated that Salama (IAIC) of the UAE had participated with 30% of the Saudi IAIC share capital of 100 million riyals. It is worth noting that Salama (IAIC) is the biggest takaful company in the world whose capital exceeds one billion UAE dirhams. Salama was the first insurance company In the world that practiced Islamic insurance (takaful). The company’s operations in Saudi Arabia extend to more than a quarter of a century.

On his part, Mr. Faisal Al-Kordy, the general manager of Saudi IAIC for Cooperative Insurance, welcomed the CMA approval to offer 40% of the company’s capital in an IPO. He indicated that despite the relatively recent establishment of Saudi IAIC, it is in fact a well founded company as a continuation of Salama (IAIC) operations in the Kingdom’s markets for over a quarter of a century.

11/02/2007 – SALAMA SHARE BUY BACK

The Board of Directors of SALAMA, largest Takaful and Re-Takaful Company, met today to discuss the financial for year ended on 31st Dec 2006. Board of Directors expressed satisfaction on the performance of the Company. The underwriting profit of AED 82.5 million represents strong operating performance of the company compared to AED 75.3 million for year 2005. Net profit of year 2006 is AED 181.015 against AED 110.741 million for the year 2005 representing 65% increase over last year. Board of Directors decided to buy back up to 10% of company shares subject to regulatory approval; this buy back represents confidence of Board of Directors on the performance of the Company.

Signals Start of AED 165m Market Expansion

SALAMA Islamic Arab Insurance Company, the worlds largest Takaful and Re-Takaful provider, has launched Health Takaful in the United Arab Emirates, the start of an AED 165 million expansion of its insurance products base in the emirates that will help drive future profitability.

The launch follows the signing of a landmark agreement with the MedNet Group, a wholly-owned subsidiary of Munich Re, one of the worlds largest reinsurance companies. MedNet will process all SALAMAs Health Takaful claims.

“This is the beginning of an aggressive expansion into the personal insurance market by SALAMA. In addition to Health Takaful, we will be launching our innovative Life Takaful product shortly, “said Dr Saleh Malaikah, Vice Chairman and CEO, SALAMA Islamic Arab Insurance Company.

“Health Takaful, along with Life Takaful, will make a significant contribution to our growth over the next five years. Both products will eventually be offered in all markets in which SALAMA operates.”

SALAMA is the first insurance company to provide Health Takaful through the MedNet Group network that has over 750,000 members and provides access to more than 4,000 hospitals in Europe, the United States and the Middle East.

“Takaful products are in huge demand because they rely so heavily on the virtue of fairness and are concurrent with the teachings of Islam,” said Parvaiz Siddiq, General Manager, SALAMA Islamic Arab Insurance Company. “As a pioneering, market-leader we are committed to providing the highest quality Takaful products to our customers.”

Industry forecasts predict the global Takaful personal insurance sector, including Health Takaful, will reach AED 17.8 billion by 2015. Saudi Arabia is expected to generate close to AED 3.3bn, followed by the UAE (AED 1.75bn) and Egypt (AED 1.7bn). All three are key markets for SALAMA.

Shahid Qazi, Assistant General Manager and Head of Health Takaful at SALAMA, said the switch from all embracing, publicly funded, healthcare to a greater reliance on private insurance, along with high population growth, will drive demand for Health Takaful.

“There is an expanding need for high-quality healthcare that is both accessible and affordable. However, access to publicly funded medical services is going to become increasingly restricted as governments seek to contain costs. Health Takaful will bridge the growing divide between public and private healthcare for those individuals who want Shariah compliant products and services.”

SALAMA launches Health Takaful

With over one billion Muslims worldwide, SALAMA expects the global Takaful market to develop rapidly over the next five years, from US $ 1.7 billion to between US $7.5 billion and US $10 billion, making it one of the fastest expanding financial industries in the world.

As part of its strategy for future growth, SALAMA has invested in developing its insurance products base in UAE and increased the capital of BEST Re – the world”s largest Islamic reinsurance company – from US $55m to US $100m. It is expected the capital enhancement of BEST Re will help improve Standard & Poors (S & P) BBB “Good” and A M Best”s B++ ”Very Good” ratings. SALAMA also intends to set up a Dhs 1 billion Re-Takaful company in Saudi Arabia and a Dhs 100m Takaful business in Malaysia.

Other plans include an Initial Public Offering of shares in the Islamic Arab Insurance Company, Saudi Arabia, in which SALAMA will have a major stake. The company has already been incorporated and final approval for the IPO is awaited. SALAMA has also initiated a new Family Takaful company in Senegal, SOSAR Life, a sister company for SOSAR Aman, a subsidiary of SALAMA. Other developments include the launch of Family Takaful in Algeria. In addition, SALAMA is finalising the procedures to establish a Family Takaful company in Egypt and has plans to launch a Family Takaful programme in the UAE.

On January 1, SALAMA established the first Shariah syndicate at Lloyd”s of London, with an initial underwriting capacity of US $72 million. The syndicate enjoys “A” security rating afforded to all Lloyd”s Syndicates by Standard and Poor”s, AM Best and Fitch. On February 12, in another pioneering move, SALAMA became the first UAE insurance company to offer its shares to nationals of other GCC countries. In the first week of trading more than one million SALAMA shares were snapped up by non UAE nationals.

SALAMA was listed on the Dubai Financial Market following an Initial Public Offering which helped raise the company”s capital to Dhs 1 billion. SALAMA has six Takaful companies and provides services in 70 countries through Tunisia headquartered BEST Re, the world”s biggest Re-Takaful company.

Strategic move will drive profit and Re-Takaful industry growth

SALAMA Islamic Arab Insurance Company, the world”s largest Takaful and Re-Takaful company, has concluded a landmark agreement to establish a Shari”ah syndicate at Lloyd”s of London, the first of its kind at the world famous insurance market.

The agreement also establishes SALAMA as the first Middle East Takaful and Re-Takaful company conducting business at Lloyd”s. The primary role of the syndicate will be to promote Re-Takaful and drive expansion of the Islamic re-insurance sector.

The Takaful Syndicate commenced trading on January 1 with an initial underwriting capacity of US $72 million. The syndicate enjoys “A” security rating afforded to all Lloyd”s Syndicates by Standard and Poor”s, AM Best and Fitch.

“The London insurance market is the world”s leading centre for international insurance and reassurance and Lloyd”s is the world”s leading specialist insurance market. Nowhere is there such a concentration of specialist underwriting and brooking expertise. That”s why SALAMA sees this agreement as an important strategic business move that will have a fundamental impact on the growth of Takaful and Re-Takaful worldwide,” said Sheikh Khaled bin Zayed bin Saqr Al Nehayan, Chairman of SALAMA Islamic Insurance Company.

“SALAMA has a proud record of being the market leader in Takaful and Re-Takaful. This agreement is another first that will significantly contribute to the future profitability of the company. It will also create a unique opportunity for Takaful and Re-Takaful companies to benefit from Lloyd”s security.

“As an investor in a Lloyds” entity, SALAMA will be able to provide Takaful companies, in the Middle East and elsewhere, with the capacity they need to provide fast, good value insurance solutions. In this way we believe we can help the entire Islamic insurance industry to grow.”

SALAMA signs Lloyd’s agreement – 2

“Reinsurance is big business at Lloyd”s. It accounted for 30% of US $28 billion in gross premium income in 2004, “said Dr Saleh Malaikah, CEO, SALAMA Islamic Arab Insurance Company. “We believe there is strong latent demand for Re-Takaful solutions among existing Lloyd”s clients which we can fulfil, as well as a fast growing demand for Shariah products from the Muslim world.

Due to the low capacity available in the market, Takaful companies have faced the problem of having to re-insure on a conventional basis, contrary to their preference for cover on Islamic principles. In the Middle East, for example, up to 80% of risk is re-insured on a conventional basis.

“Our association with Lloyd”s will enable us to develop new business that would otherwise have gone to non-Shariah compliant international reinsurance companies,” added Dr Malaikah.

Salama expects the Takaful international market to grow rapidly over the next five years, from US $ 1.7 billion to between US $7.5 billion and US $10 billion.

Bruce Graham, CEO of Creechurch, the syndicate”s managing agent, said: “We are delighted to have identified SALAMA Islamic Arab Insurance Company as a long-term partner for Creechurch in this unique venture. Their commitment, experience and profile within the Islamic insurance and reinsurance sectors should help us to participate profitably in what we expect to be one of the fastest growing sectors of the insurance industry throughout the next decade.”

As part of its strategy for future growth, SALAMA has invested in developing its insurance products base in UAE and increased the capital of BEST Re – the world”s largest Islamic reinsurance company – from US $55m to US $100m. It is expected the capital enhancement of BEST Re will help improve Standard & Poors (S & P) BBB “Good” and A M Best”s B++ “Very Good” ratings. SALAMA also intends to set up a Dhs 1 billion Re-Takaful company in Saudi Arabia and a Dhs 100m Takaful business in Malaysia.

SALAMA signs Lloyd’s agreement – 3

Other plans include an Initial Public Offering of shares in the Islamic Arab Insurance Company, Saudi Arabia, in which SALAMA will have a major stake. The company has already been incorporated and final approval for the IPO is awaited. SALAMA has also initiated a new Family Takaful company in Senegal, SOSAR Life, a sister company for SOSAR Aman, a subsidiary of SALAMA. Other developments include the launch of Family Takaful in Algeria. In addition, SALAMA is finalising the procedures to establish a Family Takaful company in Egypt and has plans to launch a Family Takaful programme in the UAE.

On February 12, in a landmark development, SALAMA became the first UAE insurance company to offer its shares to nationals of other GCC countries. The move followed a UAE government decision to treat GCC nationals as locals in the country”s stock markets. It was also in line with a decision by SALAMA”s shareholders to allow equity ownership to be extended to GCC nationals.

SALAMA was listed on the Dubai Financial Market following an Initial Public Offering which helped raise the company”s capital to Dhs 1 billion. SALAMA has six Takaful companies and provides services in 70 countries through Tunisia headquartered BEST Re, the world”s biggest Re-Takaful company

Net profit forecast to quadruple by 2010

SALAMA Islamic Arab Insurance Company, the world’s largest Takaful and Re-Takaful company has announced a provisional 2005 net profit of AED 110 million (US $30.14m), up from AED 3.599m (US $1m) in 2004.

“By any measure this is a remarkable business performance. The provisional profit is 1.7 times more than the profit projected for 2005 at the time of our Initial Public Offering in June last year, and roughly double the profit announced for the first nine months of 2005,” said Sheikh Khaled bin Zayed bin Saqr Al Nehayan, Chairman of SALAMA Islamic Arab Insurance Company.

We fully expect this strong growth in profitability to continue in 2006 and beyond, driven by a very aggressive expansion into new markets and products. We are investing close to AED 1 billion in growing the company and are confident net profits will be higher in the coming years.”

Other plans for 2006 include the establishment of a Re-Takaful company in Saudi Arabia, setting up a Takaful arm in Malaysia, the launch of a family Takaful company in Egypt and incorporation of SOSAR Life, a family Takaful provider in Senegal. In addition, SALAMA has a major stake in the IAIC Saudi Arabia, an insurance company licensed by the Saudi Arabian Monetary Agency (SAMA).

2005 was an excellent year for SALAMA. Not only was the IPO a major success but we also acquired a majority stake in TARIIC and BEST RE, the world’s largest Re-Takaful company. In addition we made a strong debut on the Dubai Financial Market and successfully rebranded the company,” said Dr Saleh Malaikah, CEO, SALAMA Islamic Arab Insurance Company.

SALAMA Profit Soars – 2

There will be no let up in 2006. The company’s activities are set to grow substantially over the next 12 months. Our strategy is to expand SALAMA’s geographic reach and to diversify our income stream and product base to place the company in a position to take advantage of the emerging opportunities in the Takaful and Re-Takaful markets.”

Dr Malaikah explained the company’s final results will be published by the end of March 2006. He said the company needed additional time to consolidate financial information from its subsidiaries, particularly BEST RE which has to obtain account confirmations from companies doing business with it. “This is inherent due to the nature of the re-insurance business,” added Dr Malaikah.

SALAMA expects global demand for Takaful and Re-Takaful products and services to grow significantly over the next five years. Market value is forecast to increase from US $1.7 billion to between US $7.5 billion and US $10 billion.

SALAMA was listed on the Dubai Financial Market in October 2005, following the IPO, which helped raise the company’s capital to Dhs 1 billion. SALAMA has six Takaful companies and provides services in 70 countries through Tunisia-headquartered BEST RE.