Salama Islamic Arab Insurance profit up 65%

Dubai: Salama Islamic Arab Insurance Co. (IAIC), the word's largest Islamic insurance operator, yesterday reported a 65 per cent jump in net profits to Dh181 million last year compared to 2005, a statement said.

Saudi IAIC, a subsidiary of Salama, has obtained a licence to commence operations in Saudi Arabia. The new company is expecting 40 per cent of the company's capital to be offered for subscription next month.

Salama has established new companies such as Saudi IAIC and adding family takaful activities (life insurance) in the UAE, Algeria and Senegal.

Salama expects substantial growth during the next five years in the global takaful and re-takaful industry, which is currently valued at $1.7 billion, to reach $7.5 billion to $10 billion, making it one of the fastest growing sectors of the financial services industry.

Shaikh Khalid Bin Saqr Al Nahyan, Salama chairman, said in a statement, "Our company has presented a distinguished performance since its shares were listed for trade on the Dubai stock exchange one year ago.

"The remarkable success was not limited only to the launch of the first IPO, but we have also a 96 per cent majority shareholding in the Takaful & Retakaful International Investment Co. (TARIIC) of Bahrain, and the total equity of BEST Re, the largest re-takaful company in the world."

The company has started family and health takaful operations not only in the UAE but also in Algeria through the Algerian subsidiary.

Saudi IAIC has added health takaful to its activities in Saudi Arabia.

A subsidiary has been set up in the Senegal to offer family takaful. This company is in addition to Sosar which is also a subsidiary in the Senegal.

The company has also contributed towards raising the capital the Jordanian Islamic Insurance Co., a joint-stock company whose shares are traded in the Amman stock exchange, in which Salama owns 15 per cent.

The company recently increased its capital by 100 per cent to eight million Jordanian dinars.