UAE Islamic Arab Insurance Company (SALAMA) achieved net profits more than doubled and amounted to 136.13 million dirhams.
According to Arabiyanet, net operating profit increased by more than 15% year on year.
The total written premiums increased by 6% to reach 1.17 billion dirhams, despite the challenges of the new Corona virus, Covid 19.
The Board of Directors proposed distributing cash dividends of 3 fils per share for the six months ending December 31, 2020, in addition to an exceptional cash dividend that was previously announced. It is 5.25 fils per share. Therefore, a total distribution of 8.25 fils per share will be recommended.
These results are supported by the strong performance of the company in the UAE and the significant improvement in investment income.
The company showed strong performance in terms of improving the profitability of the core business and investment income, with net profits more than doubling compared to last year to reach 136.13 million dirhams compared to 59.82 million Dirhams in 2019.
On the operational front, the company focused during the year 2020 on the UAE domestic market, which has greater opportunities for growth, which resulted in a 6% increase in the total written premiums. This amounted to 1.17 billion dirhams for the whole year (compared to 1.11 billion dirhams in 2019), despite the challenges posed by the emerging coronavirus pandemic, Covid 19. With the exception of the one-off profit of 67 million dirhams as a result of selling a part of Salama Holding's shares In Salama Cooperative Insurance Company (Salama Saudi Arabia), the underlying net profit increased by more than 15% to reach 69 million dirhams, compared to 59.8 million dirhams in 2019.
Moreover, Salameh has made a significant jump in her investment income, which rose from 22 million dirhams in 2019 to 45 million dirhams in 2020. This growth reflects progress. The company has achieved in re-employing cash flows through its high-quality assets, within the framework of the prudent investment strategy adopted by the Board of Directors during the year. The company has also managed to significantly reduce its accumulated losses to 314.78 million dirhams (compared to 376.82 million dirhams on December 31, 2019) thanks to its strong profitability this year.
During the year 2020, Salama affirmed its firm commitment to the benefit of its customers, as it was one of the first insurance companies in the UAE to launch its new group of Family Takaful products following the entry of the Insurance Authority’s decision No. 49 comes into force in October 2020. The ...
