Islamic Arab Insurance Company (SALAMA) has announced that its 2019 interim net profit increased 4.7% to AED33.3m ($9.1m) on improved underwriting.
In a statement, SALAMA said that gross written premium (GWP) grew by 18.8% from AED547m in 1H 2018 to AED650m in 1H2019.
The results also showed an increase in SALAMA’s total assets, with a 20% increase in assets under management.
SALAMA has already embarked on its plan to improve the existing investment portfolio across all subsidiaries by moving away from unrated speculative-grade instruments. The restructuring planned may have a short-term impact but will improve the overall investment risk profile in the long run and enhance investment income.
The efforts made thus far have contributed to SALAMA’s rating upgrade from BBB- in 2018 to BBB with a stable outlook in 2019. SALAMA stands as the largest takaful insurer with an ‘AAA’ capital adequacy level.
Separately, the board of directors has called for a general meeting of shareholders to vote on increasing the foreign ownership cap in the company from 25% to 49% and to allow GCC ownership of up to 100% subject to regulatory approvals.
SALAMA serves individual customers and institutions in the UAE and, through its extensive network of subsidiaries and associates, Saudi Arabia, Egypt, Jordan, Algeria and Senegal.