Dubai-listed Islamic Arab Insurance Company (SALAMA) has reported a net profit of AED11.09m ($3.02m) for the year ended 31 December 2025.
Compared to the 2024 financial results, SALAMA showed a 54.9% drop in net profits. However, the 2024 results comprised exceptional forex gains, that if excluded, changes the company’s profitability picture.
“On a normalised basis, excluding the 2024 exceptional foreign exchange gain of AED20m, the company delivered underlying year-on-year profit growth of approximately 147%, reflecting the continued strengthening of its core underwriting performance and sustainable earnings,” said SALAMA in a statement.
The company added, “The improvement reflects disciplined underwriting, tighter risk selection, portfolio optimisation across business lines, enhanced claims management, strengthened reserving practices, and sustained cost efficiency initiatives. Management reiterated that the 2024 foreign exchange gain was exceptional and non-recurring in nature, and that the 2025 results represent a structural strengthening of the Company's core earnings base.”
Capital and solvency position strengthened
During 2025, SALAMA reinforced its capital framework through disciplined balance sheet management, reinsurance optimisation, and prudent investment allocation, alongside completing a capital reduction and initiating the issuance of a Mandatory Convertible Sukuk (MCS) for an amount up to AED155m to enhance solvency and support sustainable growth.
At a general assembly held on 16 October 2025, shareholders approved the company’s capital reduction to offset accumulated losses and cancel treasury shares. In the ongoing recapitalisation process, shareholders approved on 30 January 2026 the participation of strategic investors in the MCS issuance.
SALAMA’s board-approved transformation plan has further strengthened solvency buffers, enhanced governance oversight, and improved risk management across underwriting, reserving, and investment functions. The company remains focused on sustainable growth supported by disciplined asset-liability management and prudent capital deployment.
SALAMA Chairman, Mr Essa Ali Bin Salem Alzaabi, said, "2025 marked a significant milestone in SALAMA's transformation journey. We have strengthened our financial foundations, enhanced our capital resilience, and improved the quality and sustainability of earnings."
Mr Mohamed Ali Bouabane, Group CEO of SALAMA, added, "Our 2025 performance demonstrates the structural strengthening of SALAMA's core business. Underlying profitability increased by 147% year-on-year, driven by disciplined underwriting, portfolio optimisation, enhanced claims management, and capital reinforcement initiatives. Our priority remains building a high-quality, recurring earnings stream supported by a robust solvency framework. The progress achieved over the past year confirms that our transformation strategy is delivering sustainable improvement."
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SALAMA’s preliminary financial results for 2025 - Highlights
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AED’000
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2025 (Un-Audited)
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2024 (Audited)
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Y-oY Change
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Insurance Revenue
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1,004,990
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1,046,378
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-3.96%
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Net Takaful & Investment Results
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43,890
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68,227
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-3.57%
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Net (Loss)/Profit
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11,089
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24,589
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-54.90%
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Normalised net profit (excluding FX gain)
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11.1m
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Around 4.5m
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+147.0%
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Balance Sheet at 31 Dec 2025
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Total Assets
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3,238,153
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3,306,956
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-2.08%
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Shareholder's Equity
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298,498
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284,048
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+5.09%
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Source: SALAMA
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