Islamic Arab Insurance Positions for Growth

Driven by economic development, population growth, and increasing awareness of the importance of insurance, the UAE’s insurance sector a key component of the Emirates’ insurance landscape, continues to expand.

The sector’s growth is attributed to rising demand and higher motor insurance rates following last year’s floods and amid this positive industry outlook, Islamic Arab Insurance Company (Salama) is well-positioned for growth by leveraging its digital platform and comprehensive suite of Takaful insurance products and services while setting industry benchmarks for customer-centric Takaful solutions.

According to the Integrated Report for the Year 2024, which was filed with Dubai Financial Market (DFM) on Monday, the company’s insurance revenue declined by 6% compared to the previous year, primarily due to its commitment to maintaining underwriting discipline and exiting non-performing accounts.

On the other hand, the company’s subsidiaries maintained stable performance, achieving a 1.6% increase in insurance revenue compared to the previous year.

The company achieved a profit before tax of $9.96 million, compared with a loss of $33.76 million in 2023. Similarly, net profit after tax saw a substantial recovery, reaching $6.7 million, compared with a loss of $37.93 million in the previous year.

The company’s total assets stood at around $900 million, recorded total liabilities of around $810 million, and total equity of $90.93 million.

Impairment of Qualified Assets

As part of its efforts to resolve legacy issues in the balance sheet, the company has made full provisions for the impairment of its qualified assets, amounting to $78.55 million.

This was executed through the restatement of the 2023 opening balance against qualified assets and equity, in accordance with International Accounting Standard 8 (IAS 8). After adjusting for the qualified assets, shareholders’ equity stands at $77.32 million.

Following the provision for impairment of the qualified assets, these qualifications have been fully resolved, and the external auditor’s opinion is now an unqualified ‘clean’ opinion, the company said.

Islamic Arab Insurance company has completed 45 years of operations last year marking a significant milestone that reaffirms its position as one of the world’s largest and oldest Takaful providers. It offers ethical, community-driven, and sustainable insurance solutions that adhere to Shariah principles.

The company’s stability and success can be attributed to its customer-focused approach, placing clients and partners at the heart of the business, and its commitment to its core values and principles.

The company continues to develop award-winning solutions that meet the evolving protection needs of both individual and corporate customers. Today, it protects over 450,000 customers and provide over $2.72 billion in insurance coverage.