SALAMA Announces 20% Revenue Increase to AED 1.11 Billion in Fiscal Year 2023

The Islamic Arab Insurance Company, known as SALAMA on the Dubai Financial Market (DFM), has unveiled its preliminary financial outcomes for the fiscal year 2023. Demonstrating a robust performance, the company reported an insurance revenue of AED 1.11 billion in 2023, marking a significant 20 percent increase from the previous fiscal year 2022. This growth is a testament to SALAMA's enduring commitment to its strategic objectives and operational excellence.

Further analysis of the financial results reveals that SALAMA's total assets experienced a notable rise, reaching AED 3.70 billion in 2023, up from AED 3.57 billion in 2022. This increment of AED 129.3 million underscores the company's solid financial health and its ability to navigate the dynamic market landscape effectively.

However, the net operating profit witnessed a decline of 13 percent, settling at AED 101.64 million. Additionally, SALAMA reported a net loss of AED 43.45 million for the year, primarily attributed to a goodwill impairment of AED 36.1 million due to currency depreciation in Egypt. The net loss also includes a one-time loss of AED 28.02 million related to a legacy fire insurance claim, where reinsurance recovery was not achieved.

In response to these challenges, SALAMA has remained focused on growth through various strategic initiatives aimed at enhancing customer-centric services, bolstering operational and digital capabilities, and consolidating its current portfolio. Saeed Alhajeri, Chairman of SALAMA, expressed confidence in the company's resilience and innovation amidst evolving market conditions and regulatory developments within the UAE insurance industry. He emphasized SALAMA's commitment to delivering value to policyholders and shareholders while advancing sustainably.

Walter Jopp, Chief Executive Officer at SALAMA, echoed this sentiment by highlighting the company's dedication to strengthening its balance sheet position and leadership in the market through strategic initiatives. With four decades of expertise in providing Takaful solutions, SALAMA aims to maintain its position as a leader in the region by prioritizing high-quality standards, personalized service, and customer satisfaction.

In summary, despite facing financial setbacks in 2023 due to goodwill impairment and legacy claims, SALAMA has demonstrated resilience by recording growth in insurance revenue and total assets. The company remains committed to its strategic objectives of delivering customer-centric initiatives and strengthening its market position while navigating through industry challenges.

With inputs from WAM