Islamic Arab Insurance : Financial statements for 31 Dec 2015

Salama- FS 2015.xlsx

Islamic Arab Insurance Co. (Salama) and its subsidiaries

Directors' report and consolidated financial statements

for the year ended 31 December 2015

Islamic Arab Insurance Co. (Salama) and its subsidiaries Directors' report and consolidated financial statements
for the year ended 31 December 2015
Contents	Page
Directors' report	1-2
Independent auditors' report	3-4
Consolidated statement of profit or loss	5
Consolidated statement of comprehensive income	6
Consolidated statement of financial position	7
Consolidated statement of cash flows	8
Consolidated statement of changes in equity	9-10
Notes	11-69

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Wt: present 16111 An n ua l Rt:port tog.t:tht:r t ht: aud ited rnnsol idated li11a11cial statemrnts for t h year ended ] I Decem ber

.201 5.

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SALAMA has many sustainable operat ions which have been managed profi tably since 2005. The loss witm:ssed in 201 5 has been pri mari ly due to the final closu re of BEST RE which has led t0 wri t ing off of a large part of Group·s profi t. The other area that has ontributed to losses is Motor business in the UAE whi ch by its very natu re is highly competit ive and volat i le. I n 201 5 the motor insurance busi ness faced many challenges leading to losses for

D many operators in the market.

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SALAMA has been able to achieve market leadership in many segments and has grown continuously and organically with stronger part nerships and distribution channels. Rest assured SALAMA is

strong and seasoned to weather cyclical losses without impacti ng i ts

D growth strategy.

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SALAMA 's net shareholders equity as of 31 Decem ber 201 5 is about AED 960 million .Vhich is substantially larger than other operators and higher than the minim um regulatory req u irement. Our credit rating remains BBB+ with stable outl ook as per S&P.

0 During the year consolidated net underwriting income is AED 56

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mill.ion as compared to AED 97 mi llion last year. Consolidated results before distribut ion to policyholders and discontinued operation losses stands at AED 79 million loss as compared to AED 25 mi llion loss last year.

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ThL·l'ol lOvi ng an:highlights from our consol idated financi.tl statements for years ended J I December 20 I and 2014:

2015 201-4

AED ·ooo AED ·ooo

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Gross written contri but ions 933,346764,117

Contri but ions earned 699,854 . 54.t,6) 5

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Incurred claims 455,850 297,) 26

Net UW income 56,228 97,200

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Investment income 18,914 26,650

Net (loss)/ profit for the year (162,840) 36,744

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SALAMA rema i ns strong and resi l ient i n lac!.! of sho11 term challenges.

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We arc very con fident that we will be able to right the temporary situation in U AE motor business and yield better results from this segment. While implementi ng corrective act ion for the motor business, SALAMA will continue to nurture other businl!ss areas which significantly contribute to its profitabil ity. We will continue to lead Takali.il market i n UA E through strong leadership and innovation in different segments.

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Finally, we would l ike to convey our thanks to our clients and rcinsurers for t heir invaluable support. We would also like to thank the management and staff for their efforts and contribution towards the growth of

D SALAMA.

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