The Islamic Arab Insurance Company, known as Salama, has reported a net loss of Dh43.45 million ($11.83 million) in 2023, compared to a profit of Dh35.43 million in 2022.
The loss was attributed to a goodwill impairment of Dh36.1 million on account of currency depreciation in Egypt and a one-time loss of Dh28.02 million on a legacy fire insurance claim for which reinsurance was not recovered, Salama said in a statement to Dubai Financial Market, where its stocks are listed.
Excluding the impact of these two events, the insurer would have reported a profit of Dh20.60 million, the company added.
The company recorded insurance revenue of AED 1.11 billion in 2023, marking a 20% increase year-on-year (YoY). Salama’s total assets stood at Dh3.70 billion in 2023, in comparison to Dh3.57 billion in 2022, showing an increase of AED 129.3 million.
“In the year 2023, we focused on staying resilient with innovation within evolving market conditions,” said Saeed Alhajeri, Chairman of Salama. “As the UAE insurance industry sees the impact of new regulatory and industry developments, Salama is confident of providing immense value to our policyholders and shareholders.”
Walter Jopp, Chief Executive Officer at SALAMA, added, “We are committed to strengthening our balance sheet position and enhancing our leadership position in the market with focused strategic initiatives.”
