Islamic Arab Insurance Company, better known as Salama, more than tripled its profit after tax in the first half of the year, supported by stronger underwriting, tighter cost controls and efforts to improve the quality of its insurance portfolio.
Salama reported profit after tax of Dh28.3 million for the six months, compared with Dh8.2 million during the same period a year earlier.
The company also recorded its second consecutive profitable quarter. Profit after tax for the second quarter reached Dh14.3 million, up from Dh7.9 million in the corresponding period last year.
Salama said its insurance service result improved sharply to Dh28.3 million, representing a Dh30.2 million turnaround from a loss of Dh1.9 million recorded in the first half of 2025.
Insurance revenue stood at Dh469.7 million, compared with Dh515.4 million a year earlier. The lower revenue figure reflected the company’s decision to focus on underwriting quality, portfolio optimization and profitability rather than pursuing higher volumes.
Management said stronger underwriting discipline, pricing measures, portfolio adjustments and tighter expense management were the main factors behind the improvement in the core insurance business.
The insurer also reported a stronger capital position after completing a capital raise and capital reduction during the first half of the year. Salama returned to a solvency surplus of Dh111.6 million, while its solvency ratio reached 154 percent at the end of June.
The company said the ratio remained comfortably above the regulatory minimum, giving it greater financial stability as it enters the second half of the year.
Salama operates across three main business areas: Property & Casualty, Life & Wealth, and Health. Its operations cover the UAE, Egypt and Algeria.
The group has continued developing its distribution network through brokers, agencies, digital channels and strategic partnerships as it seeks to expand access to its insurance products.
Mohamed Ali Bouabane, group chief executive officer of Salama, said the latest results demonstrated that measures introduced during the past 18 months were beginning to produce stronger results in the company’s core insurance operations.
He said the group had strengthened its capital position, governance framework and underwriting discipline while moving toward a more integrated operating structure.
Salama said it would maintain its focus on disciplined underwriting and careful capital allocation during the second half of the year. The company also plans to make selective investments in growth opportunities while maintaining control over costs and risk.
The improvement in profitability marks a significant shift from the loss recorded in Salama’s insurance service result a year earlier and reflects the company’s broader effort to prioritise sustainable returns over rapid expansion.
With stronger solvency and two consecutive profitable quarters, Salama enters the second half with a more stable financial position and a strategy centred on profitable growth.
