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

SALAMA (IAIC) of UAE announced that its interim net profit for the third quarter of 2007 is AED 35 million compared to AED 41 million for the same quarter in 2006. The volume of insurance premiums up to the third quarter of 2007 reached AED 684 million compared to the AED 463 million of the third quarter of 2006, showing a growth rate of about 50%.

SALAMA’s operating income reflected through the “Net Underwriting Income” reached to AED 95 million against last years amount of AED 75 million, which is an impressive increase of 25%. Income through investment dropped to AED 91 million against AED 130 million.

Sheikh Khaled Bin Zayed Bin Saqr Al-Nahayan, the company’s chairman, said that profitability of the core business has increased continuously however income from investments has fallen behind. Nevertheless the performance of the investments will improve by the end of the year, given the recent positive momentum in the stock market.

Dr. Saleh J. Malaikah, SALAMA’s Vice Chairman and CEO, believes that the increase in “Net Underwriting Income” shows that the performance of SALAMA’s core activities have yielded better result and as expected the core activities will gradually contribute to the overall profitability of Salama in a more meaningful manner. He was confident that the recent positive movement in the market will help us in improving the performance of investments in the 4th Quarter.

SALAMA has a paid-up capital of AED 1.1 billion (about US$300 million). Its shares are traded on the Dubai Financial Market. It 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 one of the two rating agencies. It holds the distinction of being the first Takaful group to be rated by S&P.

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.