Islamic Arab Insurance Company

The document is a compliance form prepared according to the SCA Board of Directors' Decision No. (32/R.M.) of 2019, which mandates that companies with shares listed on the market and accumulated losses amounting to 20% or more of their paid-up capital must comply with specific provisions. The Islamic Arab Insurance Company (SALAMA) has accumulated losses of AED 440,684,313, which is 46.90% of its paid-up capital, as of June 30, 2025. The losses are attributed to several factors: a provision of AED 288,467,043 in 2024 for qualified assets linked to ongoing litigation since 2019, a provision of AED 28.02 million in 2023 for an irrecoverable reinsurance share related to a large fire claim, a goodwill impairment of AED 49 million due to the devaluation of the Egyptian pound and inflation in Egypt, and 2023 profits affected by unrealized losses of AED 71.2 million on shareholder investments and provisions of AED 12.01 million for credit losses, in line with IFRS 9.

The document is a review report and interim condensed consolidated financial statements for Islamic Arab Insurance Co. (Salama) PJSC and its subsidiaries, dated 30 June 2025. The report is unaudited.

Salama has partnered with Policybazaar.ae to enhance access to Shariah-compliant life Takaful insurance solutions in the UAE. This collaboration aims to increase the availability of Salama’s life insurance products through Policybazaar.ae's digital platform, aligning with local regulations. The partnership seeks to expand Salama’s reach to customers interested in ethical and transparent financial protection. Salama's offerings, which include term protection and savings-linked plans, are now available on Policybazaar.ae. The collaboration is supported by educational content and product assistance, aiming to simplify life insurance decisions for UAE residents. This initiative emphasizes financial inclusion, digital innovation, and empowering families to secure their futures.

The Board of Directors of the Islamic Arab Insurance Company (SALAMA) has approved resolutions concerning the company's business affairs through circulation. This information is communicated to Mr. Hamed Ahmed Ali, the Chief Executive Officer of the Dubai Financial Market, by Motaz Kraishan, the Board Secretary.

The Islamic Arab Insurance Company (SALAMA) will have its Board of Directors pass resolutions by circulation concerning business-related matters on Tuesday, 24 June 2025. This information is addressed to H.E. Waleed Saeed Abdul Salam Al Awadhi, CEO of the Securities and Commodities Authority, and Mr. Hamed Ahmed Ali, CEO of the Dubai Financial Market. The notice is signed by Motaz Kraishan, Board Secretary.

Salama, a leading regional Takaful provider, reported AED 256 million in revenue for Q1 2025, showcasing strong performance in a challenging environment. The company's total assets reached AED 3.164 billion, with an increase in equity due to the appreciation of the Algerian Dinar and Egyptian Pound. Although net profit for Q1 2025 was AED 0.39 million, compared to AED 17.6 million in Q1 2024, the previous year's profit included a one-off gain. Excluding this, core performance remained resilient. Total comprehensive income improved to AED 4.07 million from a loss of AED 23.1 million in the same period last year, driven by favorable foreign currency adjustments. Salama's outlook was affirmed by S&P Global Ratings with a 'BBB-' rating and a Developing outlook, indicating potential for sustainable growth. The company is focused on sustainable growth, strategic renewal, and transformation under the leadership of Group CEO Mohamed Ali Boubane, emphasizing disciplined underwriting, operational excellence, and digital innovation.