The Banking Executive Magazine - March 2022 Issue

Salama SALAMA REPORTS AUDITED FY 2021 NET PROFIT OF AED 48.17MLN Islamic Arab Insurance Company, listed as “SALAMA” on DFM, has re- ceived board approval for its audited financial statements for the year ended December 31, 2021. • Net profit for the year reached AED 48.17mn. • Gross written contributions reached AED 1.09bn amid chal- lenging macroeconomic condi- tions. • Assets under management (AUM) grew 7.5% YOY because of in- creased stakeholder confidence in SALAMA. • Strong performance by subsidiaries in Egypt and Algeria achieved 38mn in 2021 up 19% YOY. • Subject to regulatory approval, the Board will propose a cash divi- dend of 3fils/share for the period ended December 31, 2021, at the AGM. • SALAMA made significant invest- ments in product innovation and digital transformation initiatives to deliver an Omni channel experi- ence and improve operational effi- ciency. Outlook: In 2022, SALAMA will focus on business expansion, sup- ported by strong balance sheet per- formance. In 2021, SALAMA made great strides in increasing assets under manage- ment and improving operational ef- ficiency. During the year, the Management of SALAMA focused on improving underwriting capabilities, attracting new business, building new revenue streams, and investing in customer-centric and digital trans- formation initiatives. The rollout of SALAMA's digital transformation strategy in 2021 led to a series of new initiatives designed to enhance its existing product line and provide customers with an Omni channel Experience, and included developments such as the launch of a revamped Motor B2C portal and the introduction of a comprehensive health plan with instant card activa- tion. These strengthened digital ca- pabilities also paved the way for the launch of innovative new product lines such as pet insurance, which customers can purchase online in less than five minutes. In addition, SALAMA's digitization efforts have also translated into in- creased operational efficiency, par- ticularly through the automation of internal processes and the use of en- hanced security measures to protect customer data and detect and re- spond to incidents as and when they occur. The introduction of API-based serv- ices has also enabled SALAMA to seamlessly integrate banks, aggrega- tors and ecommerce partners into its systems. On the product front, SALAMA has enhanced and launched five Takaful products online, including Pet, Motor, Medical, Home Content & Term Life, giving customers access to unique Takaful solutions and end-to- end paperless processing from the comfort of their homes or offices. At an operational level, the Com- pany's profitability in the UAE was affected by an increased number of claims and broader macroeconomic factors. SALAMA's subsidiaries, par- ticularly in Algeria and Egypt, contin- ued to outperform compared to the previous year. SALAMA's gross premiums written have remained consistently above the billion mark at 1.09 billion in 2021. Commenting on the FY 2021 results, Jassim Alseddiqi, SALAMA’s Chair- man, said: “Despite the uncertain economic environment in 2021, we have remained focused on executing our strategy and delivering value for our shareholders. Our robust ap- proach to improving our operations has led to SALAMA's dramatic trans- formation on many fronts, whether it's digitization of operations or prod- uct innovation. SALAMA's position as a leading and progressive takaful player in the UAE is stronger than ever and as we look ahead; we are confident about our medium to long- term growth prospects. We are well positioned to create sustainable value for our shareholders and to be a partner of choice for our policy- holders.” Fahim Al Shehhi, CEO of SALAMA, said: " We entered 2022 with good momentum in most areas, particu- larly in the way we have very effec- tively implemented our digital transformation efforts to improve op- erational efficiency, adopted industry best practices, introduced more dig- itally focused and customer-centric product offerings and product lines, expanded strategic relationships with key partners, and continue to help support key ecosystems that are crit- ical to our economy. We will con- tinue to be there for our policyholders as a trusted partner, providing them with financial secu- rity and peace of mind, just as we al- ways have." the BANKING EXECUTIVE 16 ISSUE 159 MARCH 2022