Date: 14/11/2022
SALAMA reports 9-month net profit of AED 25.1 million,
reaffirms leadership position with digital offering, good
solvency ratio and progress in insurance portfolio
consolidation
Highlights:
- Q3 Gross Written Contributions up 48% year-on-year to AED 312 million, while
for the 9-month period it reached AED 886 million.
- Strong performance of subsidiaries in Egypt and Algeria, which achieved
profitability growth of 54% YOY.
- Q3 Net Profit grows 102% YoY to AED 5.9 million.
- 5.6% YoY decline in general, administrative, and other expenses in Q3 2022,
resulting from the deployment of improved cost control measures.
- Leading in offering the largest number of digital takaful solutions to customers
and partners, with progress to date and future efforts to accelerate digital
capabilities and enable further business growth.
- Regaining solvency status and maintaining a good solvency ratio, indicating
financial stability and a high ability to pay claims.
- Preparing for the proposed consolidation of insurance portfolios, which once
completed will scale up SALAMA’s capabilities and place it among the top
five Takaful insurers in the world.
- The new board appointed in April 2019, is committed to safeguarding the
interests of SALAMA and its shareholders and has worked relentlessly in this
direction, which is rightly reflected in the recent decisions of the UAE courts in
favour of SALAMA.
Dubai, November 14, 2022: Islamic Arab Insurance Company, listed as "SALAMA" on
DFM, today announced its audited financial results for the period ended September
30, 2022. The Company reported net profit of AED 25.1 million for the 9-month period.
SALAMA's quarterly profit doubled year-on-year, rising 102% to AED 5.9 million.SALAMA's gross written contributions for the period ended September 30, 2022,
reached AED 886 million amid a price-sensitive and competitive market environment.
In the third quarter, GWC recorded significant year-on-year growth of 48% to AED 312
million.
In the UAE, SALAMA remained profitable, while subsidiaries in Algeria and Egypt
outperformed year-on-year, reporting profitability growth of 54%. General,
administrative, and other expenses in the third quarter of 2022 declined by 5.6%
compared to the same period last year, driven by improved cost control measures.
SALAMA's solid digital transformation strategy, coupled with prudent underwriting,
client portfolio diversification, new partnerships, and improved distribution channels,
contributed to the year-to-date progress across its various product lines.
In the coming quarters, SALAMA will prepare for the planned consolidation and
acquisition of Takaful Emarat and the insurance portfolios of AMAN. The proposed
transaction will expand SALAMA's capabilities, realize business synergies and improve
business performance. The portfolio consolidation, which is expected to be
completed in the second half of next year, will significantly strengthen SALAMA's
position, giving the Takaful company a larger market share and making it one of the
five largest Islamic insurers in the world.
One of the main highlights of the third quarter was the restoration of SALAMA's
solvency status. This was the result of the insurer working closely with the UAE Central
Bank and taking the necessary measures to be able to maintain a good solvency ratio
- demonstrating the insurer's financial stability and high ability to pay claims.
Commenting on the SALAMA’s quarterly performance, Jassim Alseddiqi, SALAMA's
Chairman said: "The Board of Directors is very pleased with SALAMA's strong financial
performance to date. The restoration of our solvency status was critical this quarter
and we are grateful to the Central Bank of the UAE for its support and guidance over
the past 12 months – which has been instrumental in bringing SALAMA to where we
are today in terms of capital strength. We also look forward to scaling up as we
prepare for the proposed acquisition of insurance portfolios. In addition, SALAMA's
ongoing commitment to digital transformation initiatives, combined with the
Company's penchant for innovation, has continued to contribute positively to
revenue growth. All of these steps have collectively yielded great results overall in
terms of improving SALAMA's financial strength, unlocking growth opportunities and
creating value in line with shareholder and policyholder expectations."Fahim Al Shehhi, CEO of SALAMA, said: "SALAMA's performance in the third quarter is
a true testament to how our direct-to-customer approach and aggressive customer
acquisition strategy continues to pay off. Our efforts in the strategic pillars of
digitalization, innovation and collaboration will accelerate and lead to enhanced
customer experiences and omnichannel services, as well as our ongoing digital
marketing efforts and campaigns for our large customer base. Our progress to date
and our future aspirations reinforce our commitment to making Takaful and its benefits
as seamless as possible for everyone."
The Takaful insurer's partnerships with banks, broker aggregators and e-commerce
platforms have seen tremendous growth this year, establishing SALAMA as the
preferred provider of digital Takaful solutions for underwriting and issuing policies
online. The latest partnership is an agreement with the Abu Dhabi Department of
Economic Development (ADDED) to offer SALAMA's services on ADDED 's 'Investor
Journey' portal, which allows entrepreneurs and investors to apply for a wide range of
services, including business insurance. Other recent key partnerships include one with
policybazaar to offer online insurance to owners of non-GCC-specification cars who
have not had access to comprehensive auto insurance in the past, and another with
insuretech provider Wellx to offer hyper-personalised takaful solutions to its customers
via wearables technology that helps them cultivate wellness and safety behaviours.
SALAMA continues to build new strategic partnerships with leading banks in the UAE
to provide omnichannel takaful solutions to the banks' customers.
SALAMA is also one of the first takaful providers to allow its customers to access its
services and products via WhatsApp. With initiatives like these, SALAMA is expanding
its direct-to-customer portfolio to include product lines such as enhanced medical,
motor, home, and pet insurance, as well as the recently added Essential Benefit Plan,
which enables instant policy issuance and generates a health card online.
SALAMA recently ran a 22-day social media campaign titled 'Kind Beings of Dubai' to
share stories of extraordinary acts of kindness shown or experienced by UAE residents.
Complementing the Dubai-wide initiative, SALAMA recently launched the Essential
Benefit Plan - an offering licenced from DHA that is tailored to meet the needs of
workers with dependents who earn less than AED 4000 per month.
SALAMA stands as UAE's largest sharia'h compliant Takaful operator with AAA-rated
capital adequacy rating from S&P and is one of the few insurers to meet the solvency
requirements of the regulator.
-Ends-Press Contact
SALAMA ASDA’A BCW
Sadia Noori Dhanya Issac
Head of Marketing Associate Director
Tel: +971 4 407 9940 Tel: +971 4 450 7600
Email: sadia.noori@salama.ae Email: dhanya.issac@bcw-global.com
Notes to editor:
About SALAMA Islamic Arab Insurance Company
About SALAMA Islamic Arab Insurance Company:
SALAMA Islamic Arab Insurance Company is one of the world’s largest and longest-established Shari’ah
compliant Takaful solutions providers listed on the Dubai Financial Market, with paid-up capital of
Dh1.21bn. SALAMA has been a pioneer in the Takaful industry from its incorporation in 1979 to the present
day.
SALAMA’s stability and success can be attributed to its customer-centric approach, keeping clients and
partners at the heart of the business, and its commitment to its core values and principles. SALAMA
continues to design and develop solutions that meet the ever-changing demand of customers. Today,
SALAMA is recognized for providing the most competitive and diverse range of Takaful solutions in the
region.
SALAMA serves individual customers and institutions in the UAE and, through its extensive network of
subsidiaries and associates in Egypt and Algeria.
As the UAE’s leading Takaful company, SALAMA offers a comprehensive range of family, motor, general
and health Takaful solutions. Due to its reputation for high-quality products and services and
implementation of Takaful best practice, SALAMA won the “Family Takaful Company of the Year” at
Middle East Insurance Industry Awards 2015, “Best Family Takaful Operator ME” at Islamic Banking &
Finance Awards 2016, “Best Takaful Operator” at Islamic Business and Finance Awards 2019, “Takaful
Company of the Year” at Middle East Insurance Industry Awards 2020, “Takaful Company of the Year -
UAE ” at Global Business Outlook Awards 2021, “Best Takaful Service Provider” at Global Economics
Awards 2021, “Decade of Excellence Takaful Provider - UAE” at Global Banking & Finance Awards 2021,
“Takaful Specialist of the Year” at The Mena Insurance Awards 2022, and the recent “Leading Innovative
Takaful Solution Provider” at Insuretek Middle East Insurance Industry Awards 2022.
SALAMA continues to be the preferred Takaful partner by its partners and customers, remaining
committed to ‘Securing our future – together.’

Sentiment: positive