Islamic Arab Insurance Company Reports Mixed Financial Performance in Q1 2025 Amid Strategic Renewal

Islamic Arab Insurance Company (Salama), a leading regional Takaful provider, has announced its financial results for the first quarter ended March 31, 2025. The company reported AED 256.36 million in Takaful revenue, reflecting robust topline performance despite a challenging environment. However, the net profit for Q1 2025 stood at AED 0.39 million, a significant drop from AED 17.6 million in Q1 2024, which included an exceptional one-off gain.

Salama's total comprehensive income improved to AED 4.07 million, compared to a loss of AED 23.1 million during the same period last year. This improvement was driven by favorable foreign currency adjustments at each subsidiary level. The company's total assets reached AED 3.164 billion, with equity benefitting from the appreciation of key market currencies, such as the Algerian Dinar and the Egyptian Pound.

The company's strategic renewal under the leadership of Group CEO Mohamed Ali Boubane focuses on disciplined underwriting, operational excellence, and digital innovation, aiming to maximize long-term shareholder value. S&P Global Ratings affirmed Salama's long-term issuer credit and insurer financial strength rating at 'BBB-' with a Developing outlook, reflecting the company's potential for sustainable progress.

KPI	Q1 2025	Q1 2024	Change
Revenue	AED 256.36 million	AED 271.47 million	-5.57%
Net Profit	AED 0.39 million	AED 17.6 million	-97.78%
Total Comprehensive Income	AED 4.07 million	AED -23.1 million	117.62%
Total Assets	AED 3.164 billion	AED 3.600 billion	-12.11%
Equity	Increased	Decreased	N/A

Conclusion: Salama's Q1 2025 financial performance indicates a period of transition and strategic realignment. While the decrease in net profit raises concerns, the company's improving comprehensive income and stronger balance sheet suggest resilience. Investors should consider Salama's strategic initiatives and market conditions when evaluating their positions.