The Islamic Arab Insurance Company (Salama) has kicked off 2026 with an impressive financial turnaround, reporting a net profit of Dh14 million for the first quarter, a massive leap from the Dh0.5 million recorded during the same period last year. This robust performance is largely credited to the company’s ongoing strategic restructuring, which prioritizes disciplined underwriting and portfolio optimization over sheer volume. Consequently, the company saw its solvency ratio jump from 76 per cent at the close of 2025 to 159 per cent, following a successful capital raise that has significantly fortified its balance sheet. Shareholders have also benefited, with equity climbing 40 per cent to Dh505 million and earnings per share shifting to Dh0.023.

While insurance revenue saw a slight dip to Dh229.5 million from Dh256.4 million, this decline was an intentional move by management to shed underperforming, low-margin business lines in favor of higher-quality segments. This disciplined approach has already paid off, with the UAE operations achieving their first positive net underwriting result since mid-2022, bolstered by steady contributions from subsidiaries in Algeria and Egypt. Group CEO Mohamed Ali Bouabane noted that these figures validate the company’s new direction, signaling a shift toward sustainable, long-term growth and a more resilient earnings platform for all stakeholders.