Salama reported first-half profit after tax of Dh28.3 million, more than three times the Dh8.2 million recorded a year earlier, as stronger underwriting discipline, portfolio optimization, pricing actions and tighter expense management supported its core insurance business.
The Islamic Arab Insurance Company also delivered a second consecutive profitable quarter, with Q2 profit after tax of Dh14.3 million, compared with Dh7.9 million in the same period last year.
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Salama insurance service result improved to Dh28.3 million, marking a Dh30.2 million turnaround from a loss of Dh1.9 million in the first half of 2025.
Insurance revenue stood at Dh469.7 million, compared with Dh515.4 million a year earlier, reflecting the group’s focus on underwriting quality, portfolio optimization and profitability rather than volume growth.
The company said the improvement in insurance performance was driven mainly by stronger underwriting discipline, portfolio optimization, pricing measures and tighter expense management.
Solvency ratio reaches 154%
Following a capital raise and capital reduction completed during the first half, Salama returned to a solvency surplus of Dh111.6 million, with its solvency ratio reaching 154 per cent at the end of June.
The company said the ratio remained comfortably above regulatory requirements.
Salama operates across three divisions Property & Casualty, Life & Wealth and Health with businesses in the UAE, Egypt and Algeria. It also continued to expand distribution through broker, agency, digital and strategic partnership channels.
Mohamed Ali Bouabane, Group Chief Executive Officer of S Salama, said the first-half results showed that measures taken over the past 18 months were translating into stronger core insurance performance.
He said the group had strengthened its capital position, governance and underwriting discipline while building a more integrated operating model.
Salama said it entered the second half with a stronger financial position and would continue to focus on disciplined underwriting, prudent capital allocation and selective investment in growth opportunities.
Source: Khaleej Times