Photo credit: PhotoLohiby Nabilah Annuar
Islamic Arab Insurance Company, listed as “SALAMA” on DFM, and the UAE’s largest Shari’ah compliant Takaful insurer has announced its preliminary unaudited and unreviewed financial results for the year ending 31 December 2019, reporting a net profit of AED 55 million compared to AED 2 million in 2018.
According to a statement, SALAMA’s topline showed an upward trend throughout the year 2019, reaching AED 1.13 billion from AED 1.06 billion in 2018. The company 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.
At the beginning of 2019, SALAMA embarked on a journey to improve its investment portfolio. The efforts made towards this aim have resulted in an 87 per cent 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 the 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.