15.1 million dirhams, “Salama” net profit for the first quarter 2022

Business expansion in 2022 Driven by digital transformation and investment strategy
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Strong performance of subsidiaries in Egypt and Algeria, increasing profits by 150%
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Client portfolio growth doubled in the first quarter
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Dubai: “The Gulf”
The Islamic Arab Insurance Company, Salama, announced that it recorded a net profit of 15.1 million dirhams during the first quarter of 2022, compared to 24.22 million dirhams in the first quarter of 2021, a decrease of 37, 8%.
Salama has continued to achieve its operational goals, particularly with regard to continuing to develop its digital capabilities, improving underwriting performance, diversifying its customer portfolio, and providing new and digitally enhanced products and solutions to diverse customer segments in the UAE. The company has achieved strong performance in improving core business earnings and investment income.
Salama was able to maintain its profits in the UAE despite the economic challenges. Subsidiaries, especially in Algeria and Egypt, performed better in the first quarter of 2022 compared to the same period in the previous year. Effective cost control measures have resulted in 6% savings in administrative and general expenses, compared to the same period last year. Working capital has also grown by 14% since 31 December 2021.
The company’s total written premiums amounted to 305 million dirhams in the first quarter, despite the continued difficult conditions in the market at the levels of prices and competition.
products
Salama is gradually moving towards achieving its ambition to become the provider of digital Takaful solutions in the UAE. The company currently offers one of the widest portfolios of online takaful products, and has been particularly successful in expanding its direct solutions to customers by providing premium products such as takaful health, pet insurance, car and home contents. The number of insurance policies issued online to individuals and business partners has increased several times over with the increase in the number of partners such as banks, aggregators and e-commerce platforms – who prefer the company’s solutions to issue comprehensive insurance policies smoothly and quickly.
Client
Thanks to its digital efforts and customer-centric solutions, Salama and its partners have continued to attract more customers by enabling them to obtain certificates and insurance policies within minutes without leaving their homes or offices. The company’s digital transformation initiatives have enabled the company to make this significant impact in the lives of customers, by saving a lot of time, effort and money.
Salama managed to double its client portfolio during the first quarter thanks to a strong investment strategy focusing on individual clients. The motor and health insurance product portfolio continued to grow during the first quarter of the year, replacing loss-making accounts with a stronger retail-based strategy. The process of portfolio consolidation and diversification – with the adoption of stronger underwriting controls and continuous improvement of the overall customer experience – has strengthened the company’s portfolio, increased its profits and maintained the continued momentum of its business lines.
General business lines – including insurance for appliances, travel, pets, personal accidents and home contents – recorded strong growth, supported by improvements in the company’s digital services. During the rest of the year, the company will continue to focus on strengthening its non-automotive digital business lines.
create value
Jassim Al Seddiqi, Chairman of the Board of Salama, said: “The company continues to improve its operations with a special focus on improving its capabilities in the field of digital transformation and innovation, and improving its portfolio of products and services to increase its position in the market as a leading provider of Takaful insurance services in the UAE, based on our focus on improving the resilience of our operations, building a strong digital infrastructure and with the introduction of new technologies, and with signs of stability returning to the market, we are optimistic about achieving our strategic business objectives and creating value in line with the expectations of shareholders and policyholders over the coming quarters. ”
digital transformation
In turn, Salah CEO Fahim Al Shehhi said: “Our company is witnessing a new wave of growth with continued focus on digital transformation, innovation and collaboration as the pillars to achieve more success. We are very pleased with the progress we have made during the first quarter, and are committed to maintaining this momentum for the rest of the year and building on our strengths, including our innovative products, comprehensive digital capabilities, strategic partnerships , and most importantly, our strong customer sourcing strategy. We are focused on taking this strategy to the next level; To expand our market presence, especially by improving the life insurance business and other non-motor insurance products, in order to achieve our goal of providing the benefits of Takaful insurance to everyone in the easiest way possible. ”

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