Salama Reports Strong H1 2025 Performance

Islamic Arab Insurance Company, commonly known as Salama, has unveiled its financial results for the first half of 2025, marking a period of remarkable growth and profitability. The company, a leading Takaful provider in the UAE, reported a net profit of AED 8.25 million, a substantial increase largely attributed to the AED 7.86 million profit in the second quarter alone. This performance reflects a significant rebound compared to the same period in 2024.

Salama's equity position also experienced a notable improvement, standing at AED 351.84 million as of June 30, 2025, up 5.2% from the end of 2024. This growth was driven by profit generation and a reduction in accumulated losses, alongside a significant improvement in cash reserves, which increased to AED 214.44 million from AED 148.77 million at the end of 2024.

The company's strategic focus on operational efficiency is evident in the reduction of Takaful service expenses, aligning with its commitment to optimizing performance. Total comprehensive income improved to AED 19.57 million, a stark contrast to the loss of AED 19.7 million in the same period last year, highlighting better economic conditions and positive foreign currency adjustments at the subsidiary level.

Chairman H.E. Fahad AlQassim emphasized Salama's dedication to enhancing equity, liquidity, and solvency, underscoring the significant quarter-on-quarter performance increase. He noted the company's ongoing efforts to build a resilient foundation that supports economic development and customer empowerment, aligning with the UAE's progressive vision.

Group CEO Mohamed Ali Boubane expressed satisfaction with the strong performance in Q2 2025, attributing success to strategic operational efficiency and prudent financial management. He highlighted the substantial increase in cash reserves and the strengthening of the equity base as key indicators of Salama's robust position.

Looking ahead, Salama is poised to continue its trajectory of growth, focusing on customer-centric products, innovation in Takaful offerings, and maintaining its promise to policyholders and shareholders. As the company navigates the market with agility, disciplined underwriting, and digital innovation, it aims to solidify its position as a regional Takaful leader.

Investors may consider holding their positions in Salama, given its promising financial performance and strategic initiatives that suggest a positive outlook for the remainder of 2025.