Islamic Arab Insurance Company, listed as “SALAMA” on DFM, announced its interim results for the first six months of 2020.
· Gross written premium (GWP) increased by 6.9%, from AED 650m in H1 2019 to AED 695m in H1 2020, despite challenges of the COVID-19 pandemic.
· Net profit reported for H1 2020 increased to AED 47.05m from AED 33.36m in H1 2019.
SALAMA reported growth of 6.9% in gross written contribution, from AED 650m in H1 2019 to AED 695m in H1 2020. SALAMA’s net profit increased to AED 47.05m in H1 2020 from AED 33.33m in H1 2019, and this has been 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 Premium Income. All lines of the business and its subsidiaries performed as per expectations except SALAMA Algeria, which reported a decrease in gross premium income in the first half of 2020. The prudent investment strategy has shielded SALAMA from the fluctuations in international and local equity markets.
SALAMA’s focus on strong business practices, customer-centric offerings and technology-driven solutions has made it possible to serve customers and partners seamlessly during the slowdown of business activities caused by the COVID-19 pandemic.
Use of varied technologies to reach out to customers for sales and service, inhouse and remote capabilities to manage issuance of policies online and prudent underwriting controls along with efficient claims management resulted in growth of underwriting income, from 76.72m in 2019 to 83.89m 2020, reflecting growth of 9.34% from corresponding year figures.
Commenting on the results, Mustafa G. Kheriba, SALAMA’s Group Managing Director, 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.”
He added: “As the UAE ranks high for its COVID-19 response globally, SALAMA continues to support frontline health workers and recognises the efforts of all individuals who strive to make our lives better with deep gratitude. Our Frontline Health Worker campaign will continue to support such professionals and our leadership team will remain focused on delivering sustainable value to our customers, partners and community at large”.
The continued growth has resulted in SALAMA’s rating being maintained at the same level as 2019, which is BBB. SALAMA stands as the largest Shari’ah compliant Takaful operator with ‘AAA’ level capital adequacy as per S&P. SALAMA remains committed to serving partners and customers while enhancing shareholder returns in 2020.