The Arab Islamic Insurance Company, known as “Salama,” has successfully completed its capital restructuring program, marking a significant milestone in its multi-year transformation journey. This achievement sets the stage for a new phase of financial recovery and strengthens the company’s financial position.
Salama has reaffirmed its financial solvency, aligning its capacity with the requirements of the Central Bank of the United Arab Emirates. This positions the company as a robust provider of Takaful insurance, backed by a solid capital base, a disciplined underwriting approach, and renewed growth potential.
The restructuring initiative included a capital reduction of approximately 456 million AED, aiding in the elimination of accumulated losses and aligning equity with the company’s actual economic circumstances.
Additionally, Salama addressed over 420 million AED in previously unacceptable exposures, which encompassed disputed assets, historical impairment losses, and currency-related settlements. This effort has improved the balance sheet while reducing volatility levels.
The transformation was completed through the issuance of mandatory convertible bonds worth 155 million AED, along with the issuance of new shares. These Sharia-compliant capital instruments were fully subscribed by institutional investors, including Ishraq Investment and Humana Holdings Limited, demonstrating institutional confidence in the company’s future prospects.
With its financial structure now refined, Salama is set to concentrate on achieving sustainable growth driven by operational discipline. The company plans to restore its underwriting capacity in key sectors and revitalize distribution channels, including institutional partnerships.
Salama also aims to foster profitable growth in life and wealth insurance, health insurance, and property and liability coverage, in addition to enhancing operational efficiency and improving claims services and customer experience.
Issa Ali Bin Salem Al Za’abi, Chairman of Salama, noted that the completion of the transformation program reflects the board’s commitment to rebuilding the company’s financial strength and ensuring its long-term sustainability. He emphasized that Salama is now well-positioned to confidently execute its strategy.
Meanwhile, Mohammed Ali Bouabane, CEO of the Salama Group, stated that this stage represents a pivotal turning point following the implementation of structural measures to recalibrate the balance sheet and settle financial exposures, establishing a solid capital foundation.
He added that Salama is currently focused on achieving stable underwriting performance, enhancing its competitive position, and driving sustainable growth across its core operations, leveraging its robust financial center and operational discipline.
As the restructuring process concludes, the company affirms its readiness to enter a new phase aimed at creating sustainable and long-term value for all stakeholders.