News
Salama expected to record post-tax profit of $50m
Islamic Arab Insurance Group (Salama), the world's largest takaful and re-takaful group, is expected to record post-tax profit in the range of $40 million (Dh146.8m) to $50m annually over the next two years, credit rating agency AM Best said.
The rating agency has affirmed the group's Financial Strength Ratings (FSR) to "A-" (Excellent) and Issuer Credit Rating (ICR) of "A-".
"The outlook for both ratings remains stable. AM Best anticipates Salama to maintain a good operating performance, with annual post-tax profit in the range of $40m to $50m per annum over the next two years. The impressive ratings reflect Salama's strong risk-adjusted capitalisation, supported by good operating performance and growing business portfolio," the rating agency saud yesterday.
The credit rating agency expects Salama to maintain a stable combined ratio of approximately 96 per cent coupled with a strong investment income. The group's gross premiums are expected to increase by around 35 per cent in 2008 and 30 per cent in 2009.
Dr Saleh Malaikah, Vice-Chairman and CEO of Salama, said: "The ratings for Salama by AM Best reinforces our growth strategy and will have a positive impact on our business in the changed investment milieu in the GCC. The FSR and ICR ratings are an endorsement of our strategic plans and will further boost our financial capabilities and credit worthiness."
He added: "The affirmation of our ratings is a reflection of the strength and quality of our takaful and re-takaful products and services as we look to further expand our presence across the GCC and beyond. It is also a major impetus to the UAE government's transparent policies in market regulation and efforts to promote economic growth and stability."
According to the agency, Salama's current and prospective risk-adjusted capitalisation remains at a strong level.
Salama's investment strategy is still conservative, adding that the group and its subsidiaries have a solid business profile in their traditional territories – Far East, Africa, Middle East and Central Asia, which is further improving with geographical expansion, and growth.
The rating agency has affirmed the group's Financial Strength Ratings (FSR) to "A-" (Excellent) and Issuer Credit Rating (ICR) of "A-".
"The outlook for both ratings remains stable. AM Best anticipates Salama to maintain a good operating performance, with annual post-tax profit in the range of $40m to $50m per annum over the next two years. The impressive ratings reflect Salama's strong risk-adjusted capitalisation, supported by good operating performance and growing business portfolio," the rating agency saud yesterday.
The credit rating agency expects Salama to maintain a stable combined ratio of approximately 96 per cent coupled with a strong investment income. The group's gross premiums are expected to increase by around 35 per cent in 2008 and 30 per cent in 2009.
Dr Saleh Malaikah, Vice-Chairman and CEO of Salama, said: "The ratings for Salama by AM Best reinforces our growth strategy and will have a positive impact on our business in the changed investment milieu in the GCC. The FSR and ICR ratings are an endorsement of our strategic plans and will further boost our financial capabilities and credit worthiness."
He added: "The affirmation of our ratings is a reflection of the strength and quality of our takaful and re-takaful products and services as we look to further expand our presence across the GCC and beyond. It is also a major impetus to the UAE government's transparent policies in market regulation and efforts to promote economic growth and stability."
According to the agency, Salama's current and prospective risk-adjusted capitalisation remains at a strong level.
Salama's investment strategy is still conservative, adding that the group and its subsidiaries have a solid business profile in their traditional territories – Far East, Africa, Middle East and Central Asia, which is further improving with geographical expansion, and growth.