UAE: SALAMA reports net profit of over $10m for 1H2021
Source: Middle East Insurance Review | Sep 2021
Dubai-listed Islamic Arab Insurance (SALAMA) has reported a net surplus after tax of AED40.29m ($10.97m) for the first half of 2021, according to financial statements lodged with the Dubai bourse. In comparison, the insurer posted a net surplus after tax of AED47.90m for 1H 2020.
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 (GWC) at AED655.51m for the first six months of this year despite a challenging macroeconomic environment and the lingering effects of the pandemic. This figure is 5.7% lower than the AED695.11m in GWC recorded for 1H 2020.
SALAMA had a net underwriting income of AED84.97m for 1H2021, an increase of 1.2% over 1H 2020. This is the result of significant measures to revamp and restructure operations, processes and related IT infrastructure to enhance digital business opportunities, as well as tight underwriting controls, according to a statement by the insurer.
Investment income rose 87.5% to AED31.91m in 1H 2021 compared to AED17.01m in 1H 2020.
SALAMA chairman Jassim Alseddiqi said, “Importantly, we are growing as a business and seeing an increase in our investment income and underwriting income. Looking ahead to the second half of 2021, we are confident that we can grow our operating profit and achieve our goal of creating sustainable, long-term value for our policyholders and shareholders.”
SALAMA CEO Fahim Al Shehhi said, “The 1H results reflect SALAMA’s growth momentum and demonstrate a solid foundation for transformation and our ability to manage market pressures and we continue to grow by focusing on improving our digital and operational capabilities.” M