Salama's 2024 Financial Surge: A 118% Profit Boost

Islamic Arab Insurance Company, commonly known as Salama, has announced a significant leap in its financial performance for the year 2024. As the largest Takaful solutions provider in the UAE, Salama has demonstrated its robust business strategy with a remarkable 118% increase in net profits, driven by strong underwriting discipline and operational efficiency. The company's insurance revenue reached AED 1.046 billion, underscoring its dominant position in the market.

One of the pivotal achievements for Salama this year was addressing and clearing audit qualifications that had been lingering since 2019. By aligning with the prevailing accounting standards and making provisions for impairment of qualified assets, Salama has issued its financial statements for 2024 without any audit qualifications. This move not only strengthens the company's balance sheet but also enhances its credibility and trustworthiness among stakeholders.

Under the leadership of H.E. Fahad AlQassim, Salama has focused on resolving historical legacy issues, advancing its digital transformation, and enhancing underwriting performance. AlQassim emphasized that the resolution of audit qualifications marks a milestone for Salama, reinforcing its resilience in delivering value to shareholders while protecting an expanding customer base.

Salama's commitment to innovation and customer-centric solutions is evident in its revamped website and ongoing digital transformation initiatives. The company's efforts have been recognized at various industry forums, solidifying its reputation as a thought leader in the Takaful industry. Additionally, Salama has introduced a UAE National Development Programme to nurture local talent, aligning with the Emiratisation targets set by the Central Bank of the UAE.

As a socially responsible Takaful provider, Salama continues to offer affordable healthcare coverage through the Essential Benefit Plan for low-salary band workers in the UAE. This initiative not only enhances Salama's market penetration but also underscores its commitment to societal welfare.

Looking ahead, Salama's strategic focus on digital innovation and customer satisfaction positions it well for sustained growth. Given its strong financial performance, strategic initiatives, and commitment to stakeholder engagement, Salama appears to be on a promising trajectory.

For investors, the current performance and future prospects of Salama suggest that holding onto this asset could be beneficial. The company's consistent efforts to enhance operational efficiency and market reach are likely to yield positive results in the coming years.