Dubai - United Arab Emirates, May 23, 2020:
Islamic Arab Insurance Company (“SALAMA”), the UAE’s largest and oldest Takaful provider, has announced its reviewed financial results for the quarter ending March 31, 2020, reporting a net profit attributable to shareholders of AED 13.65 million compared to AED 14.96 million in Q1 2019. The Gross Written Contribution grew by 26% to reach AED 441 million in Q1 2020 compared to AED 351 million in Q1 2019.
SALAMA continues to maintain its leading position in the Takaful segment of the UAE market. Despite global uncertainty due to COVID-19, SALAMA continued on its growth trajectory, achieving a substantial increase in its Gross Written Contribution. All lines of business and subsidiaries performed as per expectations, except SALAMA Algeria, which reported decreased Gross Written Contribution and increased claims cost in the first quarter of 2020, contributing to a decrease in the overall net profits of SALAMA. The prudent investment strategy has shielded SALAMA from fluctuation in international and local equity markets.
SALAMA is very carefully monitoring the situation from COVID-19 and adjusting its underwriting and product parameters in response to the market conditions. With prudent cashflow management and stringent control of expenses, SALAMA expects to weather this crisis. SALAMA has not seen a significant deterioration in claim experience due to the COVID-19 crisis.
SALAMA has effectively transitioned to Work From Home and is serving customers and its distribution partners seamlessly and is meeting all its customer service benchmarks.
SALAMA maintains a strong solvency position, AAA-rated capital adequacy as recognised by S&P.