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, which if excluded, change 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
In early January 2026, SALAMA announced that it had completed a capital reduction to write off losses accumulated in previous years and cancel treasury shares. These moves were approved at a General Assembly Meeting on 16 October 2025.
The capital reduction by AED456,567,815 was effected through the following measures: the extinction of all the accumulated losses amounting to AED443,861,155 (through the cancellation, on a pro rata basis, of 439,737,326 shares and the utilisation of an amount of AED4,123,829 from the statutory reserve); and the cancellation of 16,830,489 treasury shares, as reflected in the audited financial statements of the company as of 31 December 2024.
The company also initiated the issuance of a Mandatory Convertible Sukuk (MCS) for up to AED155m to enhance solvency and support sustainable growth. Shareholders approved on 30 January 2026 the participation of strategic investors in the MCS issuance.
Mr Mohamed Ali Bouabane, Group CEO of SALAMA, said, “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.” M