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Salama reports net income of Dh43.23m in nine months

Salama maintained momentum with improved operating performance, generating net underwriting income of Dh122.5 million, up 0.75 per cent year-on-year basis

Islamic Arab Insurance Company, listed as ‘Salama’ on the DFM, on Monday reported a net income of Dh43.23 million for the nine-month period ended September 30, 2021.

The company also recorded a net underwriting income of Dh122.5 million, an increase of 0.75 per cent 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.

“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 digitisation efforts and streamline costs,” Jassim Alseddiqi, Salama’s chairman, said.

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 Dh866.1 million during the nine-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 Dh25 million for the nine months ended September 30, 2021.

Salama achieved strong growth in net investment income, driven by a 19.60 per cent increase in invested assets from Dh1.143 billion to Dh1.368 billion in Q3 2021, demonstrating the effectiveness of the investment strategy deployed by the Board last year.

“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,” Fahim AlShehhi, CEO of Salama, said.

Salama stands as the largest shariah-compliant Takaful operator with ‘AAA’ level capital adequacy as per S&P. It remains committed to serving partners and customers while enhancing shareholder returns in 2021 and beyond.

— business@khaleejtimes.com