KHALEEJ TIMES, Monday, Aug 16, 2021 | Muharram 7, 1443
Salama reports Dh40.29 million net income for H1
Emirates:
Islamic Arab Insurance Company, listed as Salama on the DFM, on Sunday
reported a net income of Dh40.29 million for the first half of 2021 and said the
company maintained momentum in achieving its strategic objectives, with solid
performance in improving core business profitability and investment income,
which increased by 87.53 per cent to Dh31.91 million during the January-June
2021 compared to Dh17.01 million in the same period last year.
The company also recorded a net underwriting income of Dh84.96 million, an
increase of 1.2 per cent over the same period last year. This is the result of
significant measures to revamp and restructure operations and processes and
related IT infrastructure to enhance digital business opportunities, as well as
tight underwriting controls.
Salama’s strategic focus on the local UAE market, where it sees the most growth
potential, enabled the company to maintain its gross written contributions at
Dh655.51 million in the second quarter, demonstrating operational excellence
despite a challenging macroeconomic environment and the lingering effects of the
pandemic.
Salama’s subsidiaries in Egypt and Algeria also posted positive results,
recording a combined profit of Dh15 million in the first half of 2021, compared
to Dh18.83 million for the same period last year.
Importantly, Salamaachieved strong growth in net investment income, driven by an
11.70 per cent increase in invested assets from Dh1.143 billion to Dh1.277
billion in the second quarter of 2021. This increase demonstrates the progress
the company has made in redeploying cash flows into high quality assets as part
of the prudent investment strategy adopted by the Board last year.
Jassim Alseddiqi, Salama’s chairman said the company’s second quarter results
highlight the company’s underlying performance and resilience in the face of
challenging market conditions.
“Importantly, we are growing as a business and seeing an increase in our
investment income and underwriting income. Looking ahead to the second half of
2021, we are confident that we can grow our operating profit and achieve our
goal of creating sustainable, long-term value for our policyholders and
shareholders.”
Fahim AlShehhi, CEO of Salama, said the first-half results reflect Salama’s
growth momentum and demonstrate a solid foundation for transformation, and “our
ability to manage market pressures” and continue to grow by focusing on
improving our digital and operational capabilities.
“We are aligned with the Board’s strategy and remain in a strong position to
support our employees and communities while creating value for our
shareholders.”
In view of the good results, Salama’s board of directors has scheduled to meet
on September 5, 2021 to discuss the distribution of semi-annual dividends to
shareholders.