Salama Reports Impressive 67% Surge in H1 2024 Net Profit
Islamic Arab Insurance Company (Salama) has announced a remarkable 67% increase in net profit for the first half of 2024, showcasing its resilience and strategic growth in a challenging market environment.
Summary
Islamic Arab Insurance Company (Salama) reported a 67% increase in net profit for H1 2024, reaching AED 20.53 million. The company also saw a significant rise in Takaful revenue and total assets, alongside the appointment of experienced new board members.
Islamic Arab Insurance Company (Salama), UAE's largest Takaful solutions provider, has reported a net profit of AED 20.53 million for the first half of 2024, marking a substantial 67% increase compared to AED 12.26 million during the same period in 2023. This impressive growth comes despite a challenging revenue environment, demonstrating Salama's resilience and strategic focus on core business profitability.
In H1 2024, Salama recorded Takaful revenue of AED 528.58 million, reflecting the company's strong market penetration and commitment to customer-centric solutions. Total assets also saw a modest increase, rising to AED 3,701.08 million. Additionally, other operating income surged to AED 20.68 million, a remarkable 277% increase from the previous year, although foreign currency adjustments were negatively impacted by the depreciation of the Egyptian Pound.
The company's robust performance follows the appointment of new board members, including H.E. Fahad AlQassim as Chairman and Mr. Fareed Lutfi as Vice Chairman. AlQassim brings extensive experience in transformation and investment growth within the financial services sector, having held leadership positions with ADQ, Emirates Capital, Waha Capital, and The Executive Council – Government of Dubai. Lutfi, with over 40 years of experience in the insurance industry, currently serves as Secretary General of the Emirates Insurance Federation and Gulf Insurance Federation, making him a critical influencer in the region.
Walter Jopp, Chief Executive Officer at Salama, expressed his satisfaction with the company's progress, stating, 'As we implement our strategy and focus on delivering profitable growth, I am pleased with the progress we have made by focusing on underwriting discipline and supporting customer needs. The company’s performance shows the positive outcomes of our customer-focused approach, including strategic partnerships and digitization of solutions and services. With our new Board members and a robust leadership team, we are confident of our ambitious growth strategy and that we will sustain this momentum to become the leading Takaful provider in the region.'
Salama's financial results are further bolstered by its market penetration strategy, which emphasizes being a trusted, human-centric, and transparent Takaful provider. This approach is reflected in the company's newly revamped website and the recent opening of its new Abu Dhabi office. These efforts, along with strategic appointments within the management team, aim to create long-term value for partners and customers.
Given the company's strong financial performance, strategic leadership appointments, and commitment to customer-centric growth, investors may consider holding their positions in Salama. The company's focus on expanding its market presence and enhancing its service offerings positions it well for sustained growth in the future.
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Summary
Salama, the largest Takaful solutions provider in the UAE, reported a 67% increase in net profit for the first half of 2024, reaching AED 20.53 million compared to AED 12.26 million in the same period in 2023. Takaful revenue was AED 528.58 million, and total assets rose modestly to AED 3,701.08 million. Other operating income saw a significant increase of 277%, despite challenges such as the depreciation of the Egyptian Pound. The company's performance coincides with the appointment of new Board members, including H.E. Fahad AlQassim as Chairman and Mr. Fareed Lutfi as Vice Chairman, both bringing extensive experience in finance and insurance. CEO Walter Jopp highlighted the positive impact of the company's customer-focused approach, strategic partnerships, and digitization initiatives. Salama aims to sustain its growth momentum and continue contributing to the UAE's progress as a Shariah-compliant market leader. Recent developments include a revamped website, a new office in Abu Dhabi, and strategic management appointments.
