UAE: SALAMA's 1H2020 net profit increases 41% to $12.8m
Source: Middle East Insurance Review | Sep 2020
Islamic Arab Insurance Company (SALAMA) has posted a 41% surge in net profit to AED47.05m for the first six months of the year compared to AED33.36m in 1H2019.
GWP increased by 6.9%, from AED650m in 1H2019 to AED695m in 1H2020, despite the challenges of the COVID-19 pandemic, the insurer said in a statement.
SALAMA said the profit increase was made possible due to the strategies implemented at board level focusing on core business profitability, enhancement of investment income and implementation of superior governance standards.
SALAMA continues to maintain its leading position in the takaful segment of the UAE market. Despite global uncertainty due to COVID-19, SALAMA continued on its growth trajectory, achieving a substantial increase in its gross contributions. All lines of the business and its subsidiaries performed as per expectations except SALAMA Algeria, which reported a decrease in gross contributions in the first half of 2020. Its prudent investment strategy has shielded the company from the fluctuations in international and local equity markets.
Use of varied technologies to reach out to customers for sales and service, in-house and remote capabilities to manage the issuance of policies online and prudent underwriting controls along with efficient claims management resulted in growth of underwriting income, from AED76.72m in 1H2019 to AED83.89m in 1H2020, reflecting growth of 9.34%.
Commenting on the results, SALAMA group managing director Mustafa G Kheriba said, “SALAMA remained resilient in the first half of 2020 in the face of uncertainties and unseen challenges posed by the pandemic. Our customer-centric approach backed with specific business and investment strategies have paved the way for SALAMA’s success. We accelerated our digital capabilities to provide convenience and easier access to customers. We will continue to closely monitor the changes as the path of recovery remains uncertain.” M