Salama reports Dh40.29 million net income for H1

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.

— muzaffarrizvi@khaleejtimes.com