#Dubai #UAE #Salama #Islamic Arab Insurance #Takaful Solutions

SALAMA Reports Strong Financial Results for 2025

The Islamic Arab Insurance Company, commonly known as SALAMA, has recently released its preliminary financial results for the year ending December 31, 2025. This marked a significant milestone for the company, reflecting robust growth and enhanced capital positioning, ultimately leading to a reported net profit of AED 11.1 million. Notably, when excluding an exceptional foreign exchange gain from 2024, the underlying profit showed an impressive increase of approximately 147% year-on-year.

Financial Highlights

In a detailed analysis of SALAMA's performance, it is clear that the company's disciplined approach to underwriting has paid off generously. The core drivers of this success can be attributed to a series of strategic initiatives aimed at optimizing the portfolio across various business lines, refining claims management processes, and improving cost efficiency. The underlying net profit for 2024, adjusted for foreign exchange fluctuations, stood at around AED 4.5 million, primarily enhancing the company’s financial foundation and operational resilience.

Achievements

Chairman Essa Ali Bin Salem Alzaabi remarked on the importance of these results, emphasizing the solidification of financial foundations, enhanced capital resilience, and the sustained quality of earnings achieved through rigorous governance and clear operational strategies. The records for 2025 clearly depict SALAMA's commitment to long-term shareholder value and disciplined capital management.

In addition, the company's growth strategies involved reinforcing capital through calculated balance sheet management and the optimization of reinsurance. This has paved the way for prudent investment allocation and successful completion of crucial capital adjustments, including a capital reduction and the initiation of a Mandatory Convertible Sukuk (MCS) issuance of up to AED 155 million. Such measures aim to fortify solvency levels while promoting sustainable growth.

Leadership Insights

Mohamed Ali Bouabane, the Group Chief Executive Officer, echoed this optimism regarding the operational enhancements within SALAMA. He stated, "Our performance in 2025 clearly illustrates the structural fortification of SALAMA's core business. With a year-on-year increase in underlying profitability of 147%, our efforts in disciplined underwriting and portfolio optimization stand validated."

He further emphasized a commitment to creating a high-quality, recurring stream of earnings coupled with a robust solvency framework—a vision that is steadily materializing through the transformative strategy instituted within the organization over the past year.

Future Outlook

Looking ahead, SALAMA's management reiterated its strategic focus on sustainable growth accelerated by disciplined asset-liability management and cautious capital deployment strategies. With the financial statements slated for release as per the Dubai Financial Market's disclosure requirements, stakeholders can anticipate deeper insights into the company’s operations, future initiatives, and strategic goals.

By positioning itself firmly in the Takaful solutions market, SALAMA continues to advocate for customer-centric services, ensuring it remains at the forefront of the insurance industry while remaining committed to upholding the ethical principles of Shariah compliance. The company's past performance and its forward-looking strategies suggest a promising trajectory for 2026 and beyond, representing a beacon of progress within the Middle East's burgeoning financial landscape.

As a long-established player in the Takaful industry, SALAMA's ability to adapt, innovate, and respond to market dynamics will undoubtedly play a crucial role in solidifying its status as a leader in providing sustainable insurance solutions.