Salama reports sharp rise in profit, solvency ratio in Q1 2026

20/05/2026 03:42 AST

Islamic Arab Insurance Company (Salama) reported a significant jump in profitability and solvency during the first quarter of 2026, as the takaful provider continued to advance its strategic turnaround and capital strengthening programme.

The company posted a net profit of Dh14 million for Q1 2026, compared to Dh0.5 million during the same period last year, marking one of its strongest quarterly performances in recent years.

Salama also reported a sharp improvement in its solvency ratio, which rose from 76 per cent at the end of 2025 to 159 per cent following the successful completion of its recent capital raise, significantly strengthening the group's balance sheet and regulatory capital position.

Shareholders' equity increased 40 per cent to Dh505 million, while earnings per share rose to Dh0.023 from a loss of Dh0.001 a year earlier.

The company said the results reflect the impact of its strategic transformation programme, which focuses on sustainable profitability, disciplined underwriting and portfolio optimisation rather than premium volume growth.

Insurance revenue stood at Dh229.5 million in Q1 2026, compared to Dh256.4 million in the same period last year, as the company intentionally reduced exposure to lower-margin and underperforming business lines in favour of higher-quality and more profitable segments.

Salama said the UAE business delivered its first positive net underwriting result since the second quarter of 2022, while subsidiaries in Algeria and Egypt also contributed positively to the group's improved performance.

Mohamed Ali Bouabane, group CEO of Salama, said the latest results demonstrate the impact of the strategic decisions implemented by the company.

"Delivering Dh14 million in profit, restoring solvency to 159 per cent and significantly strengthening our equity base are clear confirmations of our transformation strategy," he said.

"Our focus now shifts firmly toward sustainable growth through consistent underwriting performance, strengthening our market position and building a resilient, high-quality earnings platform for shareholders, policyholders and partners."

Khaleej Times