Islamic Arab Insurance Company (Salama), one of the world's largest and longest-established composite takaful companies, has announced a landmark set of 1Q2026 financial results, marking a major milestone in the Group's transformation and recovery journey.
SALAMA’s 1Q2026 net profit reached AED14m ($3.8m), compared to AED0.5m in the corresponding quarter in 2025. The 1Q2026 net profits also exceeded a net profit of AED11m for the 2025 full year.
At the same time, the solvency ratio surged from 76% at year-end 2025 to 159% after its recent capital raising exercise, firmly restoring SALAMA’s regulatory capital strength and materially reinforcing the balance sheet.
SALAMA stated that its strategic focus on underwriting profitability is increasingly delivering tangible results, as the Group continues to prioritise underwriting modernisation, disciplined risk selection, and portfolio optimisation to drive qualitative earnings rather than solely quantitative premium volume increase. SALAMA’s 1Q2026 insurance revenue stood at AED229.5m compared to AED256.4m in 1Q2025, reflecting the company’s deliberate focus on underwriting profitability and long-term value creation over volume-driven growth.
The continued repositioning of the portfolio toward higher-quality and more profitable business segments, combined with reduced exposure to underperforming and low-margin lines, contributed to stronger underwriting margins and a more resilient earnings profile. These initiatives form part of SALAMA’s broader long-term strategy aimed to simplify the business, strengthen financial resilience, and improve earnings stability across market cycles.
The turnaround was broad-based across the Group, with the UAE, as well as its subsidiaries in Algeria and Egypt all contributing positively to the improved performance. The Algerian subsidiary continued to demonstrate strong operational resilience and profitability, while the Egyptian unit maintained positive momentum supported by growth alongside stronger investment and foreign exchange income.
Commenting on the results, Mr Mohamed Ali Bouabane, SALAMA Group CEO, said, “Our 1Q2026 results demonstrate the tangible impact of the strategic choices we have made. Delivering AED14m in profit, restoring solvency to 159% and a significantly strengthened equity base are clear confirmations of our transformation strategy. Our focus now shifts firmly to sustainable growth: driving consistent underwriting performance, strengthening our market position and building a resilient, high-quality earnings platform for our shareholders, policyholders and partners.”