Islamic Arab Insurance Company (SALAMA) Shows Resilience Amidst Market Challenges: A Financial Analysis
An in-depth analysis of Islamic Arab Insurance Company’s financial performance, highlighting the company's strategic initiatives and financial health.
Summary
Islamic Arab Insurance Company (SALAMA) demonstrates financial resilience through strategic initiatives, despite market challenges. The company's latest financial report reveals a stable performance with a focus on strengthening equity and enhancing profitability.
Islamic Arab Insurance Company (SALAMA) Shows Resilience Amidst Market Challenges: A Financial Analysis
The Islamic Arab Insurance Company (SALAMA), one of the UAE's leading Takaful providers, continues to demonstrate financial resilience amidst challenging market conditions. The company's latest financial report for the period ending September 30, 2025, highlights its strategic initiatives aimed at strengthening equity and enhancing profitability.
Key Performance Indicators
| KPI | 30 Sep 2025 | 30 Sep 2024 | Change |
|---|---|---|---|
| Revenue | AED 768.7 million | AED 802.8 million | -4.2% |
| Net Income | AED 11.1 million | AED 30.4 million | -63.5% |
| Operating Income | Stable | Stable | N/A |
| Earnings per Share | N/A | N/A | N/A |
| Debt Ratio | Reduced | Reduced | N/A |
| Interest Coverage Ratio | N/A | N/A | N/A |
Analysis of Financial Performance
The financial performance of SALAMA for the period ending September 30, 2025, indicates a strategic focus on maintaining stable operations amidst a challenging economic environment. The company reported a net profit of AED 11.1 million, a decrease from AED 30.4 million in the same period last year. However, last year’s results included a one-off foreign exchange gain of AED 19.4 million, which, when excluded, shows stable underlying profitability.
The company's comprehensive income improved significantly to AED 16 million, compared to a loss of AED 33.8 million in the previous year, driven by stronger investment performance and enhanced operational efficiency. This improvement highlights SALAMA's focus on investment strategies and operational optimization.
Despite a decline in Takaful revenue to AED 768.7 million from AED 802.8 million, the company's strategic emphasis on prioritizing quality over volume is evident. Total liabilities decreased to AED 2.83 billion from AED 2.97 billion, while shareholders’ equity rose to AED 302.2 million, reinforcing the company's solvency position.
Conclusion
For investors, the key takeaway from SALAMA's latest financial report is the company's strategic resilience and focus on strengthening its financial foundations. The upcoming issuance of Mandatory Convertible Sukuk (MCS) is expected to further bolster the company's capital base, enabling it to pursue growth opportunities more aggressively. Overall, SALAMA remains a stable player in the Takaful industry, with a clear focus on sustainable profitability and shareholder value creation.
Source
Summary
The document is a review report and interim condensed consolidated financial statements for Islamic Arab Insurance Co. (Salama) PJSC and its subsidiaries, dated 30 September 2025. The financial statements are unaudited.
