Salama net loss at $38mln in 2023; but revenue up 20% to $300mln

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Islamic Arab Insurance Company (Salama) reported takaful revenue of AED1.111 billion ($300 million in 2023, an increase of 20% from 2022, but posted a net loss of AED139.327 million ($38 million).

The loss is attributed to goodwill impairment of AED49.007 million due to adverse macroeconomic factors and provision for expected credit losses of AED83.287 million.

The company’s net loss also includes a one-time loss of AED28.02 million on account of a legacy fire insurance claim for which reinsurance was not recovered totally. The company reported total assets at AED3.613 billion in 2023, in comparison to AED3.573 billion in 2022.

Staying reslient

Saeed Alhajeri, Chairman of Salama, commented: “The year 2023 was focused on staying resilient in evolving market conditions. Salama remains optimistic and growth oriented in a challenging business environment. As the UAE insurance industry sees the impact of new regulatory and industry developments, Salama is strengthening its foundation to leverage these opportunities and provide further value to our policyholders and shareholders. We remain steadfast in our commitment to sustainable growth and providing our expanding customer base with best-in-class Takaful solutions.”

Walter Jopp, Chief Executive Officer at Salama, said: “Salama is undergoing transformation, and we're focused on fortifying our balance sheet to ensure stability, transparency, and sustainable growth. Our goal is to create a strong foundation that allows us to serve our customers better and drive long-term success.

“With a commitment to responsible financial management and operational excellence, we're positioning Salama for a bright future that benefits all our stakeholders. Our customers remain at the heart of our business, and we aim to continuously exceed their expectations by providing innovative products and quality services.”