15.10 million dirhams, net profit of “SALAMA” for the first quarter 2022

The company is focused on expanding its business in 2022 driven by digital transformation initiatives and a strong investment strategy

Most notable results:

  • The company’s net profit for the first quarter 2022 amounted to 15.10 million dirhams
  • Gross written premiums of AED 305 million despite market challenges
  • Strong performance of subsidiaries in Egypt and Algeria, increasing profits by 150% year-on-year
  • The General Assembly approved the distribution of cash dividends of 2 fils per share for the fiscal year ended 31 December 2021.
  • Effective cost control measures resulted in a 6% cost reduction in general and administrative expenses compared to the same period last year.
  • Working capital growth of 14% since 31 December 2021
  • Client portfolio doubled in the first quarter, due to an aggressive retail-focused sourcing strategy
  • Future prospects: The company aims to expand its business in 2022 by continuing to invest in product innovation and digital transformation initiatives to enhance its multi-channel service experiences, providing solutions designed to meet customer needs, and improve operational efficiency

Dubai: The Islamic Arab Insurance Company, listed on the Dubai Financial Market under the name “SALAMA”, today announced its audited financial results for the first quarter of 2022. The company’s net profit for this period amounted to 15.10 million dirhams.

Salama has continued to achieve its operational goals, particularly in terms of 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 contributed to savings of 6% of 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 gross written premiums amounted to 305 million dirhams in the first quarter, despite the continued difficult conditions in the market in terms of prices and competition.

Salama is gradually moving towards achieving its ambition to become the leading 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 multiplied with the increase in the number of partners such as banks, aggregators and e-commerce platforms – who prefer company solutions to issue comprehensive insurance policies smoothly and quickly.

With 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 doubled its client portfolio during the first quarter thanks to a strong investment strategy focused on individual clients. The motor insurance 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.

Commenting on the financial results for the first quarter, Jassem 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 product and services portfolio to increase its position in the market as a leading service provider. Takaful insurance in the UAE, and based on our focus on improving the flexibility of our operations, building a strong digital infrastructure and introducing new technologies, and with signs of a return of stability to the market, we are optimistic about achieving our strategic business objectives and creating value in line with the expectations of shareholders and policyholders in the coming quarters. ”

Fahim Al Shehhi, CEO of SALAMA, said: “Our company is witnessing a new wave of growth with a sustained focus on digital transformation, innovation and collaboration as the pillars to achieve more success. We are very pleased with the progress we made during the first quarter, and we are committed to maintaining this momentum for the rest of the year, building on our strengths, including our innovative products, comprehensive digital capabilities, strategic partnerships and, above all, our strong customer acquisition strategy. we are focused on taking this strategy to the next level to expand our market presence, in particular by improving our insurance business Life and other non-motor insurance products, in order to achieve our goal of reaping the benefits of Takaful insurance to all to offer the easiest way possible. ”

The company’s annual general meeting has agreed to distribute cash dividends of 2 fils per share for the financial year ending 31 December 2021.

Earlier this year, the Dubai Health Authority awarded Salama the co-insurer title, making it one of the 16 insurance companies in the country that can offer a “basic benefit plan”, created to ensure quality health insurance for all Dubai- residents, especially workers Those whose monthly income does not exceed 4000 dirhams.

#companydata

– is over –

Leave a Comment