SALAMA Achieves Record Earnings and Significant Solvency Improvement in Q1 2026
SALAMA Achieves Record Earnings and Significant Solvency Improvement in Q1 2026
In an impressive display of financial transformation, the Islamic Arab Insurance Company (SALAMA) has reported a record net profit of AED 14 million for the first quarter of 2026. This marks a dramatic increase from the mere AED 0.4 million profit recorded during the same period in 2025. The company’s robust performance is underscored by a notable 40% growth in shareholders' equity, which reached AED 505 million, primarily driven by a successful capital raise initiative.
The transformation of SALAMA's financial landscape is further highlighted by its solvency ratio, which surged from 76% at the end of 2025 to an impressive 159% following the completion of the capital raise. This revitalization not only reflects SALAMA's improved regulatory capital strength but also lays a solid foundation for sustained growth.
Key highlights from SALAMA's Q1 2026 results include:
- - Earnings per share (EPS) rose to AED 0.023, an astonishing year-on-year increase of 2,400% from the previous year’s AED -0.001.
- - The UAE business unit has successfully achieved its first positive net underwriting result since Q2 2022, showcasing effective risk management and operational strategies.
- - Although insurance revenue for this quarter decreased to AED 229.5 million from AED 256.4 million, this reflects SALAMA's strategic pivot towards underwriting profitability rather than merely chasing top-line growth.
The positive financial outcomes stem from SALAMA's disciplined underwriting practices and operational improvements initiated as part of a comprehensive transformation program focused on sustainability over purely volume-driven metrics. The strategic repositioning of its insurance portfolio toward higher-quality and more profitable business segments has further bolstered its underwriting margins.
Performance improvements were broad-based across SALAMA's operations, with significant contributions from its subsidiaries in Algeria and Egypt alongside the UAE’s positive results. The Algerian subsidiary has demonstrated solid operational resilience, while the Egyptian branch maintained positive momentum owing to stronger investment and foreign exchange revenues.
SALAMA's Group Chief Executive Officer, Mohamed Ali Bouabane, expressed optimism about the company's trajectory. He stated, "Our Q1 2026 results exhibit the substantial impact of our well-calibrated strategic choices. Achieving AED 14 million in profit, restoring solvency to 159%, alongside a significantly strengthened equity base strongly affirms our robust transformation strategy. Our future focus will be on driving sustainable growth through consistent underwriting performance and building a resilient, high-quality earnings platform for our stakeholders."
About SALAMA
SALAMA, established in 1979, stands as one of the largest and oldest providers of Shariah-compliant Takaful solutions globally. Listed on the Dubai Financial Market with a paid-up capital of AED 820 million, SALAMA has continually won accolades for its customer-centric approach and innovative insurance solutions. With a commitment to adapt to changing market dynamics, the company offers a diverse range of family, motor, general, and health Takaful solutions to its customers across the UAE, Egypt, and Algeria. As SALAMA progresses on its transformative journey, it remains devoted to shaping a sustainable future for its partners and customers alike.
Topics Financial Services & Investing）
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