Salama posts Dh19.2m profit in H1 on strong operational efficiencies

Robust business performance with gross written contribution of Dh574 million; Strong performance by subsidiaries in Egypt and Algeria, which achieved profitability growth of 64% YOY basis



In the UAE, Salama remained profitable, while its subsidiaries in Algeria and Egypt exceeded performance compared to the same period last year. — File photo
In the UAE, Salama remained profitable, while its subsidiaries in Algeria and Egypt exceeded performance compared to the same period last year. — File photo

By Staff Report

Published: Mon 15 Aug 2022, 4:36 PM

Islamic Arab Insurance Company, popularly known as Salama on Monday reported a net profit of Dh19.20 million in the first half of the year and attributed it to strong operational efficiencies, product innovation and digital transformation initiatives.

In a statement, the DFM-listen company said it remained on track to achieve its operational objectives in first half of 2022, led by the continued development of its digital capabilities, bolstering other aspects of the business — including prudent underwriting, client portfolio diversification, new partnerships, and improved distribution channels — providing seamless access to the company’s offerings across varied consumer segments.

In the UAE, Salama remained profitable, while its subsidiaries in Algeria and Egypt exceeded performance compared to the same period last year, reporting profitability growth of 64 per cent. General and administrative expenses in first half of 2022 improved by 15.88 per cent compared to the same period last year.

Salama's gross written contributions reached Dh574 million in the first half of the year in a price-sensitive and competitive market environment.

The first half also saw Salama establishing new strategic tie-ups with banks in the UAE to provide omnichannel Takaful solutions to bank customers. In addition, Salama part-nered with insuretech providers such as Wellx, to provide hyper-personalised takaful solutions to their customers via wearables technology. In doing so, Salama goes above and beyond offering hyper customised Takaful solutions that will positively impact con-sumers and help them cultivate wellness and safety behaviours.

As part of its strategy to cater to a diverse customer base and reach untapped market segments, Salama partnered with policybazaar to offer online insurance for non-GCC specification cars. Through this partnership, Salama is providing seamless and fast online insurance for owners of non-GCC-specification cars who have not had access to comprehensive auto insurance in the past.

As more partners, including banks, broker aggregators and e-commerce platforms, choose Salama as their preferred digital takaful solutions provider for end-to-end policies onboarding and issuance, the number of retail and e-commerce policies issued by Salama online has also multiplied.

The takaful insurer has also been busy expanding its direct-to-customer portfolio with product lines such as enhanced medical, motor, home, pet insurance and recently added essential benefit plan that allows instant issuance of policy and generates health card online. In 2022, Salama launched a WhatsApp channel for customers to access its services and products and is now one of the first providers to offer end-to-end pet insurance through Whatsapp. Users can now fill out their application, make the payment and get the insurance policy documents issued - all through Whatsapp.

Jassim Alseddiqi, Salama’s chairman said the first six months of the year have been pivotal for the company, as “we have made visible progress” in bringing innovative takaful solutions to more segments of the population — all thanks to our well-executed digital-led business transformation initiatives.

“Having achieved so much in the first half of the year, we are optimistic about the progress we can make for the rest of the year. This is underlined by our strong commitment to value creation in line with shareholder and policyholder expectations," he said.

Fahim Al Shehhi, CEO of Salama, said the company’s robust performance in the first half of the year is a testament to the progress we have made in our key strategic pillars that include digitalization, innovation and collaboration.

“With our all-encompassing digital capabilities, we are well positioned to grow and expand, led by an aggressive customer acquisition strategy. Growing our life and non-motor businesses is also a focus for us. We are confident about our prospects for the second half of the year and reaffirm our commitment to making Takaful and its benefits as seamless as possible for everyone," he said.

— muzaffarrizvi@khaleejtimes.com


More news from Business