Salama Islamic Arab Insurance Company (SALAMA) has completed its capital restructuring programme, marking the conclusion of a multi-year transformation and the re-establishment of the company's financial strength.
SALAMA has restored its solvency position to a strong and fully compliant level in line with the requirements of the Central Bank of the UAE (CBUAE), said the company in a statement.
The restructuring programme included an AED456m capital reduction, eliminating accumulated losses and aligning the company’s equity base with its underlying economic position.
As part of this reset, SALAMA resolved over AED420m of legacy and non-admissible exposures, including disputed assets, historical impairments, and foreign exchange-related adjustments, materially strengthening the balance sheet, and reducing volatility.
The transformation was completed through the successful conversion of an AED155m Mandatory Convertible Sukuk (MCS) and issuance of new shares, a Shariah-compliant capital instrument fully subscribed by strategic institutional investors Eshraq Investments and Humana Holding, reinforcing strong institutional confidence in SALAMA’s future trajectory.
Growth-ready
With its balance sheet reset and capital position strengthened, SALAMA says that it is now focused on delivering disciplined underwriting performance and sustainable growth. The company, which describes itself as “growth ready”, is:
• Reinstating its underwriting capacity across its core business segments
• Re-engaging key distribution channels, including corporate partnerships
• Driving profitable growth across Life & Wealth, Health and P&C
• Enhancing its claims service, operational efficiency and customer experience
Mr Essa Ali Bin Salem Alzaabi, Chairman of SALAMA, said, “The successful completion of this transformation reflects the Board’s commitment to restoring the company’s financial strength and long-term sustainability. With a fully reset balance sheet and strengthened capital position, SALAMA is now well positioned to pursue its strategic priorities with confidence and discipline.”