Established UAE Takaful Company Reports Significant Increase In Its Top-Line
SALAMA Islamic Arab Insurance Company, one of the UAE’s largest and oldest Shari’ah compliant Takaful solutions providers, has reported financial results for the twelve-month period ending December 31, 2018.
Listed on the Dubai Financial Market and entering its fortieth year of operation, SALAMA has posted double-digit growth in 2018 despite the insurance companies listed on UAE stock exchanges reporting less than 1 per cent growth in written premium during the same period.
2018 witnessed year-on-year gross written premium in the UAE slowing to less than 1 per cent, a significant decline compared to the 12 per cent reported in 2017. In contrast to the market’s overall performance, SALAMA’s premium income increased by 30 per cent. The market-beating growth of the top-line, which reached Dh1.063bn in 2018, was bolstered by SALAMA’s effective distribution strategies, a company-wide focus on customer retention and increased efficiencies across its service offering to customers and partners. The company further reported underwriting income increased by Dh10m to Dh151m, highlighting SALAMA’s operational success.
As the region’s awareness of Shari’ah compliant insurance grows, the UAE’s Takaful industry has expanded. In 2018, SALAMA remained focused on its customers and partners, providing sustainable solutions that adhere to the highest ethical standards. SALAMA’s customers rely on the company to provide peace of mind at a fair price – and it delivers just that.
In contrast to top-line income exceeding Dh1bn, the bottom line suffered a decline due to investment losses and discontinued operations. However, SALAMA is confident the corrective measures and strong controls now in place will see the company continue to strengthen its position in 2019.
Despite the challenging market conditions in the region, SALAMA has remained strong and resilient. The company will continue to nurture those areas of the business that will significantly contribute to its profitability. Through strong leadership and commitment to innovation across a wide range of segments, SALAMA will remain a market leader in the UAE’s Takaful sector. The ADFG/Goldilocks have recently become the single largest shareholder of SALAMA, which will further strengthen SALAMA position as market leader in Takaful in UAE.
S&P Global Ratings predicts key drivers of premium growth in 2019 will be the adoption of a Dh50bn multi-year stimulus package adopted in Abu Dhabi aimed at increasing infrastructure and investments in Dubai in the period leading up to Expo 2020. Furthermore, Insurance Authority UAE is very active in developing and implementing insurance and Takaful regulations. With the introduction of more stringent regulations within the UAE’s insurance sector, the country will continue to see improvements that will benefit both companies and policyholders.
SALAMA serves individual customers and institutions in the UAE and, through its extensive network of subsidiaries and associates across Saudi Arabia, Egypt, Jordan, Algeria and Senegal. The company offers a comprehensive range of family, motor, general and health Takaful solutions.
