SALAMA achieved an impressive 147% growth in underlying profit
• Underlying net profit increased approximately 147% year-on-year on a normalised basis
• Capital position and solvency strengthened through disciplined balance sheet management
• Continued focus on sustainable underwriting profitability and long-term value creation
Islamic Arab Insurance Company (SALAMA) announced its preliminary financial results for the full year ended 31 December 2025, reporting a net profit of AED 11.1 million.
On a normalised basis, excluding the 2024 exceptional foreign exchange gain of AED 20 million, the Company delivered underlying year-on-year profit growth of approximately 147%, reflecting the continued strengthening of its core underwriting performance and sustainable earnings.
Enhanced Underlying Earnings
- 2024 normalised net profit (excluding FX gain): approximately AED 4.5 million
- 2025 reported net profit: AED 11.1 million
- Underlying year-on-year growth: approximately 147%
The improvement reflects disciplined underwriting, tighter risk selection, portfolio optimisation across business lines, enhanced claims management, strengthened reserving practices, and sustained cost efficiency initiatives. Management reiterated that the 2024 foreign exchange gain was exceptional and non-recurring in nature, and that the 2025 results represent a structural strengthening of the Company’s core earnings base.
Capital and Solvency Position Strengthened
During 2025, SALAMA reinforced its capital framework through disciplined balance sheet management, reinsurance optimisation, and prudent investment allocation, alongside completing a capital reduction and initiating the issuance of a Mandatory Convertible Sukuk (MCS) for a maximum amount up to AED 155 million to enhance solvency and support sustainable growth.
The Board-approved transformation plan has further strengthened solvency buffers, enhanced governance oversight, and improved risk management across underwriting, reserving, and investment functions. The Company remains focused on sustainable growth supported by disciplined asset-liability management and prudent capital deployment.
Essa Ali Bin Salem Alzaabi, Chairman of SALAMA’s Board, commented:
“2025 marked a significant milestone in SALAMA’s transformation journey. We have strengthened our financial foundations, enhanced our capital resilience, and improved the quality and sustainability of earnings. These results reflect the Board’s continued commitment to disciplined execution, sound governance, prudent capital stewardship, and long-term shareholder value creation.”
Mohamed Ali Bouabane, Group Chief Executive Officer of SALAMA, added:
“Our 2025 performance demonstrates the structural strengthening of SALAMA’s core business. Underlying profitability increased by 147% year-on-year, driven by disciplined underwriting, portfolio optimisation, enhanced claims management, and capital reinforcement initiatives. Our priority remains building a high-quality, recurring earnings stream supported by a robust solvency framework. The progress achieved over the past year confirms that our transformation strategy is delivering sustainable improvement.”
The Company will release its audited financial statements in due course in accordance with Dubai Financial Market disclosure requirements.
