Islamic Arab Insurance Company, listed as “SALAMA” on DFM, the UAE’s largest Sharia’h Compliant Takaful solutions provider, reported profit of AED 8.04 million in its first quarter results (Q1) of 2023 today.
The company successfully implemented new IFRS 17 standards, which came into force on January 1, 2023. This significant milestone marks a crucial step towards enhancing transparency, consistency, and comparability in the financial reporting processes.
Building on the success of 2022, SALAMA continued its growth trajectory in the first quarter of 2023, delivering a solid performance in improving core business profitability with Insurance Revenue reaching AED 265 million, reflecting a 18% increase as compared to the same period last year. SALAMA has Total Assets of AED 3,556.61 million.
This announcement follows recent appointments within SALAMA’s leadership team as the Company prepares for the next phase in its successful growth trajectory, maintaining its position as a leader in the UAE Takaful industry for over 43 years. The Company has appointed business and finance leader H.E. Saeed Alhajeri as Chairman and seasoned insurance veteran, Walter Jopp as CEO, as part of its strategy to advance SALAMA’s growth ambitions in the Takaful industry and strengthen Emiratisation initiatives.
The Company continued to strengthen its balance sheet with the conversion of accumulated losses to retained earnings of AED 2.66 million after the completion of capital reduction in Q1 2023.
Commenting on the first quarter results, H.E. Saeed Alhajeri, SALAMA’s Chairman said: “Throughout this quarter, we have continued to pursue our ambitious strategy for growth. Our Q1 2023 results demonstrate our firm focus on profitability while remaining committed to financial stability. Despite global economic headwinds, we see tremendous opportunity for Sharia’h Compliant Insurance Solutions and remain committed to delivering world class product offerings and services for our ever-growing customer base and value to our stakeholders.”
H.E. Alhajeri continued, “As the UAE steadily delivers higher economic growth, we continue to see increased momentum across sectors, and this is also reflected in our solid performance. We anticipate that the strength and stability of UAE economy, improving economic sentiment, continued infrastructure spending, new mandatory cover and overall higher insurance demand in the UAE will boost our business throughout 2023.”
SALAMA’s growth journey serves as a testament of its exceptional Takaful insurance products to customers while upholding the highest standards of governance. The Company continues to progress strategic initiatives including recruiting and fostering Emirati talent acquisition across various managerial levels with ten new recruits joining SALAMA recently. SALAMA will continue to keep customers at heart and cater to varied segments of the market making access to Takaful section in all categories easy.
The adoption of IFRS 17 brings about a comprehensive framework for insurance contracts, ensuring that SALAMA’s financial statements accurately reflect the nature and complexities of the insurance business. By adhering to this global standard, SALAMA remains better equipped to provide relevant and reliable information to stakeholders, enabling them to make informed decisions. SALAMA remains confident that the adoption of IFRS 17 will contribute to a more robust and transparent financial reporting landscape, further solidifying its commitment to maintaining the highest standards of accounting and disclosure practices.
SALAMA is the largest Sharia’h Compliant Takaful solutions provider in the UAE with a “AAA” capital adequacy rating from S&P.
