SALAMA reports second consecutive profitable quarter in H1 2026

Islamic Arab Insurance Company (SALAMA) PJSC, the Middle East's first Takaful insurer, has reported a significant improvement in profitability for the first half of 2026, delivering a second consecutive profitable quarter.

SALAMA recorded profit after tax of AED 28.3 million for the six months ended June 30, 2026, more than three times the AED 8.2 million reported during the same period in 2025.

For the second quarter, profit after tax reached AED 14.3 million, compared with AED 7.9 million in Q2 2025.

Insurance performance shows strong turnaround

The improvement was supported by stronger performance from SALAMA's core insurance operations.

The company's Insurance Service Result reached AED 28.3 million in H1 2026, representing a turnaround of AED 30.2 million from a loss of AED 1.9 million in the first half of 2025.

Insurance revenue stood at AED 469.7 million, compared with AED 515.4 million a year earlier. SALAMA said the change reflects its continued focus on underwriting quality, portfolio optimisation and sustainable profitability rather than pursuing growth based primarily on volume.

The improved insurance performance was supported by tighter underwriting discipline, portfolio optimisation, pricing measures and stronger expense management.

Solvency position strengthens

SALAMA also reported a stronger capital position following capital raise and capital reduction actions completed during the first half of 2026.

The company's solvency surplus stood at AED 111.6 million, while its solvency ratio reached 154% as of June 30, 2026. SALAMA said the ratio remains comfortably above regulatory requirements.

The improved capital position is expected to provide a stronger foundation as the insurer continues to focus on risk management, disciplined capital allocation and sustainable growth.

Focus on three core business divisions

SALAMA has continued to strengthen its operating model through enhanced governance, leadership renewal and greater alignment across its regional operations.

The Group operates across Life & Wealth, Health and Property & Casualty, with activities spanning the UAE, Egypt and Algeria.

The insurer has also continued expanding its distribution network through broker, agency, digital and strategic partnership channels while maintaining a disciplined approach to capital allocation.

H.E. Humaid Mohammad Obaid Alqutami, Chairman of SALAMA, said the results demonstrate progress in strengthening the company's financial position and developing a business focused on sustainable long-term value.

Mohamed Ali Bouabane, Group Chief Executive Officer of SALAMA, said the H1 results demonstrate that measures implemented over the past 18 months are translating into stronger core insurance performance and greater resilience.

SALAMA targets sustainable growth

The company enters the second half of 2026 with a stronger financial and operational position. Management said it will continue prioritising disciplined underwriting, prudent capital allocation and selective investment in opportunities that support sustainable long-term growth.

The latest results mark another step in SALAMA's strategy to strengthen its core insurance operations while improving governance, capital resilience and long-term value creation for customers, employees, partners and shareholders.