Salama's Profits Surge 64% Amid Strategic Growth
Islamic Arab Insurance Company, UAE's leading Takaful provider, reports significant profit growth, driven by strategic initiatives and market expansion.
Summary
Salama, UAE's largest Takaful provider, reports a 64% increase in net profit for YTD Q3 2024, driven by strategic growth and market expansion.
Islamic Arab Insurance Company, popularly known as Salama, has delivered an impressive financial performance for the year-to-date third quarter of 2024. The company, a leader in the Takaful insurance sector in the UAE, reported a 64% increase in net profit, reaching AED 30.41 million compared to AED 18.56 million during the same period in 2023. This remarkable growth underscores Salama's strategic focus on disciplined underwriting, expense management, and digital transformation.
Salama's Takaful revenue for the period stood at AED 802.83 million, reflecting the company's robust market presence and competitive edge in the insurance sector. The company also reported an increase in total assets, now valued at AED 3,669.82 million, indicating a stable financial position despite challenges such as the depreciation of the Egyptian Pound impacting foreign currency adjustments.
Chairman H.E. Fahad AlQassim emphasized the company's commitment to optimizing the balance sheet and resolving historical issues while maintaining high standards of service for customers, employees, shareholders, and the community. Salama's focus on being a trusted, human-centric, and transparent insurance provider aligns with its core Takaful principles, which are deeply rooted in Islamic Shari’a.
The departure of CEO Walter Jopp, who has led Salama through a successful period of transformation, marks the end of a significant chapter for the company. Jopp's leadership has been pivotal in resolving legacy issues and enhancing underwriting discipline. Despite his departure, Jopp will continue to support the transition process, ensuring that Salama maintains its positive momentum.
Salama's strategic objectives remain clear: to provide peace of mind to customers through a wide range of insurance solutions while focusing on sustainable growth. The company's resilience is backed by its solid Takaful foundation, and its commitment to innovation and operational efficiency continues to shape a positive customer experience.
Given Salama's strong financial performance, strategic direction, and commitment to growth, investors might consider a buy position. The company's robust fundamentals and strategic initiatives suggest potential for continued success in the long term.
Source
Summary
Islamic Arab Insurance Company (Salama), the UAE's largest Takaful solutions provider, reported a 64% increase in profitability for the first nine months of 2024, with net profits rising to AED 30.41 million compared to AED 18.56 million in the same period in 2023. Takaful revenue reached AED 802.83 million, and total assets increased to AED 3,669.82 million. The company noted an increase in other operating income, despite negative impacts from foreign currency adjustments due to the depreciation of the Egyptian Pound. Salama's Chairman, H.E. Fahad AlQassim, emphasized the company's commitment to delivering value and high standards of service. The company's strategies in underwriting, expense management, and digitalization have contributed to its improved performance. CEO Walter Jopp highlighted the strong third-quarter results and the company's focus on resolving legacy issues and improving customer experience. Jopp has stepped down for personal reasons but will assist in the transition. Salama remains focused on providing peace of mind to customers and achieving growth through strategic objectives, supported by its solid Takaful foundation and industry recognition.
