Restores financial strength, shifts to growth
Salama Islamic Arab Insurance Company (SALAMA), one of the world’s leading composite Shariah-compliant Takaful providers has announced the successful completion of its capital restructuring programme, marking the conclusion of a multi-year transformation and the re-establishment of the Company’s financial strength, the insurer said in press communication.
SALAMA has restored its solvency position to a strong and fully compliant level in line with the requirements of the Central Bank of the UAE (CBUAE), positioning the Company as a well-capitalised, disciplined and growth-ready Takaful insurer with renewed underwriting capacity.
Eliminating losses
The restructuring programme included an AED 456mn capital reduction, eliminating accumulated losses and aligning the Company’s equity base with its underlying economic position.
As part of this reset, SALAMA resolved over AED 420mn of legacy and non-admissible exposures, including disputed assets, historical impairments, and foreign exchange-related adjustments, materially strengthening the balance sheet, and reducing volatility.
Value Creation
With its balance sheet reset and capital position strengthened, SALAMA is now focused on delivering disciplined underwriting performance and sustainable growth. The Company is now:
- Reinstating its underwriting capacity across its core business segments
- Re-engaging key distribution channels, including corporate partnerships
- Driving profitable growth across Life & Wealth, Health and P&C
- Enhancing its claims service, operational efficiency and customer experience
“The successful completion of this transformation reflects the Board’s commitment to restoring the Company’s financial strength and long-term sustainability. With a fully reset balance sheet and strengthened capital position, SALAMA is now well positioned to pursue its strategic priorities with confidence and discipline,” stated Essa Ali Bin Salem Alzaabi, Chairman, SALAMA.
“The completion of our restructuring programme marks a decisive turning point for SALAMA. insurer, with the financial strength and operational discipline required to compete effectively. Our focus now is on execution, delivering consistent underwriting performance, strengthening our market position and driving sustainable growth across our core businesses,” assured Mohamed Ali Bouabane, Group Chief Executive Officer, SALAMA.
