Salama records Dh48.17m net profit in 2021
Jassim Alseddiqi, chairman, Salama. — Supplied photo
Salama’s strong performance by subsidiaries in Egypt and Algeria achieved Dh38 million in 2021 up 19 per cent year on year.
Islamic Arab Insurance company and DFM-listed Salama posted a net profit of Dh48.17 million for the year ended December 31, 2021.The company has received board approval for its audited financial statements with gross written contributions reaching Dh1.09 billion amid challenging macroeconomic conditions.
The company’s assets under management grew 7.5 per cent year on year as a result of increased stakeholder confidence. Salama’s strong performance by subsidiaries in Egypt and Algeria achieved Dh38 million in 2021 up 19 per cent year on year. The board will propose a cash dividened of 3fils per share — subject to regulatory approval — for the period ended December 31, 2021, at the annual general meeting.
In 2021, Salama made great strides in increasing assets under management and improving operational efficiency focused on improving underwriting capabilities, attracting new business, building new revenue streams, and investing in customer-centric and digital transformation initiatives.
The rollout of Salama’s digital transformation strategy in 2021 led to a series of new initiatives designed to enhance its existing product line and provide customers with an omnichannel experience, and included developments such as the launch of a revamped Motor B2C portal and the introduction of a comprehensive health plan with instant card activation. These strengthened digital capabilities also paved the way for the launch of innovative new product lines such as pet insurance, which customers can purchase online in less than five minutes.
In addition, Salama’s digitisation efforts have also translated into increased operational efficiency, particularly through the automation of internal processes and the use of enhanced security measures to protect customer data and detect and respond to incidents as and when they occur.
The introduction of API-based services has also enabled Salama to seamlessly integrate banks, aggregators and ecommerce partners into its systems.
On the product front, Salama has enhanced and launched five Takaful products online, including Pet, Motor, Medical, Home Content & Term Life, giving customers access to unique Takaful solutions and end-to-end paperless processing from the comfort of their homes or offices.
At an operational level, the company’s profitability in the UAE was affected by an increased number of claims and broader macroeconomic factors. Salama’s subsidiaries, particularly in Algeria and Egypt, continued to outperform compared to the previous year.
Jassim Alseddiqi, chairman, Salama said: “Despite the uncertain economic environment in 2021, we have remained focused on executing our strategy and delivering value for our shareholders. Our robust approach to improving our operations has led to Salama’s dramatic transformation on many fronts, whether it’s digitization of operations or product innovation. Salama’s position as a leading and progressive takaful player in the UAE is stronger than ever and as we look ahead, we are confident about our medium to long-term growth prospects. We are well positioned to create sustainable value for our shareholders and to be a partner of choice for our policyholders.”
Salama stands as the largest sharia’h compliant Takaful operator with ‘AAA” capital adequacy rating as per S&P. Salama remains committed to serving partners and customers while enhancing shareholder returns in 2021 and beyond.
Fahim Al Shehhi, CEO of Salama, said: “We entered 2022 with good momentum in most areas, particularly in the way we have very effectively implemented our digital transformation efforts to improve operational efficiency, adopted industry best practices, introduced more digitally focused and customer-centric product offerings and product lines, expanded strategic relationships with key partners, and continue to help support key ecosystems that are critical to our economy. We will continue to be there for our policyholders as a trusted partner, providing them with financial security and peace of mind, just as we always have.”