Islamic Arab Insurance Salama : Press release regarding financial results for the 2st QTR of 2022

Date: 12/08/2022

SALAMA reports H1 net profit of AED 19.20 million,

achieving market leadership in digital takaful solutions

Highlights:

• Records net profit of AED 19.20 million in H1 2022 - driven by strong operational efficiencies, product innovation and digital transformation initiatives.
• Net profit for H1 2022 compared to same period last year was adversely impacted by lower investment income.
• Robust business performance with Gross written contribution of AED 574 million.
• Achieves market leadership in offering largest number of digital takaful solutions to customers and partners, well poised to benefit from this growth opportunity in the second half of 2022.
• Strong performance by subsidiaries in Egypt and Algeria, which achieved profitability growth of 64% YOY.
• 15.88% YOY improvement in General and Administrative expenses in H1 2022, thanks to the deployment of strict cost control measures.
• Optimistic on delivering sustained, profitable growth for remaining part of 2022 with focused execution towards partnerships, product innovation and hyper-personalised digital solutions.

Dubai, August 12, 2022: Islamic Arab Insurance Company, listed as "SALAMA" on DFM, today announced its audited financial results for the period ending June 30, 2022. The Company reported a net profit of AED 19.20 million in the first half of the year.

SALAMA remained on track to achieve its operational objectives in H1 2022, led by the continued development of its digital capabilities, bolstering other aspects of the business - including prudent underwriting, client portfolio diversification, new partnerships, and improved distribution channels - providing seamless access to SALAMA's offerings across varied consumer segments.

In the UAE, SALAMA remained profitable, while its subsidiaries in Algeria and Egypt exceeded performance compared to the same period last year, reporting profitability growth of 64%. General and administrative expenses in H1 2022 improved by 15.88% compared to the same period last year.

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SALAMA's gross written contributions reached AED 574 million in the first half of the year in a price-sensitive and competitive market environment.

The first half also saw SALAMA establishing new strategic tie-ups with banks in the UAE to provide omnichannel Takaful solutions to bank customers. In addition, SALAMA partnered with insuretech providers such as Wellx, to provide hyper-personalised takaful solutions to their customers via wearables technology. In doing so, SALAMA goes above and beyond offering hyper customised Takaful solutions that will positively impact consumers and help them cultivate wellness and safety behaviours.

As part of its strategy to cater to a diverse customer base and reach untapped market segments, SALAMA partnered with policybazaar to offer online insurance for non- GCC specification cars. Through this partnership, SALAMA is providing seamless and fast online insurance for owners of non-GCC-specification cars who have not had access to comprehensive auto insurance in the past.

As more partners, including banks, broker aggregators and e-commerce platforms, choose SALAMA as their preferred digital takaful solutions provider for end-to-end policies onboarding and issuance, the number of retail and e-commerce policies issued by SALAMA online has also multiplied.

The Takaful insurer has also been busy expanding its direct-to-customer portfolio with product lines such as enhanced medical, motor, home, pet insurance and recently added essential benefit plan that allows instant issuance of policy and generates health card online. In 2022, SALAMA launched a WhatsApp channel for customers to access its services and products and is now one of the first providers to offer end- to-end pet insurance through Whatsapp. Users can now fill out their application, make the payment and get the insurance policy documents issued - all through Whatsapp.

Commenting on the first half yearly performance, Jassim Alseddiqi, SALAMA's Chairman said: "The first six months of the year have been pivotal for SALAMA, as we have made visible progress in bringing innovative takaful solutions to more segments of the population - all thanks to our well-executeddigital-led business transformation initiatives. Having achieved so much in the first half of the year, we are optimistic about the progress we can make for the rest of the year. This is underlined by our strong commitment to value creation in line with shareholder and policyholder expectations."

Fahim Al Shehhi, CEO of SALAMA, said: " SALAMA's robust performance in the first half of the year is a testament to the progress we have made in our key strategic pillars that include digitalization, innovation and collaboration. With our all-encompassing

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digital capabilities, we are well positioned to grow and expand, led by an aggressive customer acquisition strategy. Growing our life and non-motor businesses is also a focus for us. We are confident about our prospects for the second half of the year and reaffirm our commitment to making Takaful and its benefits as seamless as possible for everyone."

	-Ends-
Press Contact
SALAMA	ASDA'A BCW
Sadia Noori	Dhanya Issac
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Notes to editor:

About SALAMA Islamic Arab Insurance Company

About SALAMA Islamic Arab Insurance Company:

SALAMA Islamic Arab Insurance Company is one of the world's largest and longest-established Shari'ah compliant Takaful solutions providers listed on the Dubai Financial Market, with paid-up capital of Dh1.21bn. SALAMA has been a pioneer in the Takaful industry from its incorporation in 1979 to the present day.

SALAMA's stability and success can be attributed to its customer-centric approach, keeping clients and partners at the heart of the business, and its commitment to its core values and principles. SALAMA continues to design and develop solutions that meet the ever-changing demand of customers. Today, SALAMA is recognized for providing the most competitive and diverse range of Takaful solutions in the region.

SALAMA serves individual customers and institutions in the UAE and, through its extensive network of subsidiaries and associates in Egypt and Algeria.

As the UAE's leading Takaful company, SALAMA offers a comprehensive range of family, motor, general and health Takaful solutions. Due to its reputation for high-quality products and services and implementation of Takaful best practice, SALAMA won the "Family Takaful Company of the Year" at Middle East Insurance Industry Awards 2015, "Best Family Takaful Operator ME" at Islamic Banking &

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Finance Awards 2016, "Best Takaful Operator" at Islamic Business and Finance Awards 2019, "Takaful Company of the Year" at Middle East Insurance Industry Awards 2020, "Takaful Company of the Year - UAE " at Global Business Outlook Awards 2021, "Best Takaful Service Provider" at Global Economics Awards 2021, "Decade of Excellence Takaful Provider - UAE" at Global Banking & Finance Awards 2021, "Takaful Specialist of the Year" at The Mena Insurance Awards 2022, and the recent "Leading Innovative Takaful Solution Provider" at Insuretek Middle East Insurance Industry Awards 2022.

SALAMA continues to be the preferred Takaful partner by its partners and customers, remaining committed to 'Securing our future - together.'

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