SALAMA's Net Profit Rises By 12 times to Dhs 53 Million
Provisional result for Q3 is 86% of forecast for year
SALAMA Islamic Arab Insurance Company, the world's largest Takaful and Re-Takaful company, announced today that its provisional net profit for the first nine months is Dhs 53 million, 86% of profit forecast for financial year of 2005 Premiums underwritten during the first three quarters of the year amounted to Dhs 357 million, Investment revenues and other revenues stood at Dhs 57 million compared with Dhs 2.6 million in the first nine months of 2004. The total assets and shareholder equity stood at Dhs 1696 million and Dhs 1046 million respectively.
"In the first nine months we have got very close to our year end profit forecast of Dhs 61.5 million. By any standards this is an outstanding performance, achieved across all our core business activities," said Sheikh Khaled bin Zayed bin Saqr Al Nehayan. "We are confident the strong upward trend in profitability will continue during the remainder of this year and in the years ahead. We have already announced an aggressive Dhs 950 million expansion programme into new markets and new products which will drive future profitability and shareholder value. We expect our net profits to quadruple by 2010."
Commenting on third quarter earning Dr. Saleh J. Malaikah, Vice Chairman & CEO of SALAMA Islamic Arab Insurance Company said "This is the first time we are reporting our results after the increase of paid up capital from Dhs 50 million to Dhs 1 billion. In this quarter we devoted considerable time on consolidating the entities we have acquired in Egypt, Algeria, Senegal and Tunis. Our operations have continued to perform well and are on course to achieve excellent year end results"
"The company will publish its final results for the third quarter on November 20; we require slightly longer to publish our financial results because of the consolidation of financial information of our subsidiaries, specifically BEST RE which is a Re-Takaful company. It needs additional time in obtaining account confirmations from companies doing business with it. This is inherent due to the nature of the re-insurance business"
An established Islamic insurance and reinsurance company, SALAMA Islamic Arab Insurance Company was recently listed on the Dubai Financial Market following an Initial Public Offering, which was many times over subscribed, which helped raise the company capital to One Billion Dir hams. SALAMA Islamic Arab Insurance Company has six Takaful companies and provides services in 70 countries through Tunisia headquartered BEST Re, the world’s biggest Islamic Re-takaful company.
As part of its strategy for future growth, the company intends to invest Dhs 165M in developing
its insurance products base in UAE; increase the capital of BEST Re US$55M to US$100M. It is expected that capital enhancement of BEST Re will help Standard & Poor's (S& P) improve its BBB "Good" and A M Best's B++ "Very Good" ratings. The company plans to establish a Dhs 100M Re-Takaful company in Saudi Arabia and a Dhs 58M Takaful business in Malaysia. Other plans include the incorporation, with a capital of Dhs 200M, of the Islamic Arab Insurance Company, Saudi Arabia, in which "Salama" Islamic Arab Insurance Company will have a major stake, and investment of Dhs 32M in Egypt to set up a family Takaful company. A further Dhs 20M has been allotted to family Takaful in the UAE and Dhs 11m to incorporate, SOSAR Life, a family Takaful provider in Senegal.