SALAMA profits for second quarter 2007 reach AED 33.6 million

The volume of insurance premiums in the first half of 2007 reached AED 462 million compared to AED 310 M in the first half of 2006, growing at the rate of 50%.

Sheikh Khaled Bin Zayed Bin Sagr Al-Nahayan, the company's chairman, said that the volume of business of all subsidiary companies has grown.

He added that most of such growth does not get reflected in the interim quarterly statements due to the need of building reserves for insurance operations.

However, he said, it is expected operational profits will grow at a similar rate by the end of the year.

"During the 2nd Quarter 2007, the current market position and the maintaining of a conservative reserving policy have led Best Re to a slight increase in its loss reserves of 5%. This situation do not affect the final semi-annual result neither the ROE progressing however of 12%."

Dr. Saleh J. Malaikah, SALAMA's Vice Chairman and CEO, drew attention that the figures do not reflect the beneficial effects of the operations of the newly created Saudi IAIC for Cooperative Insurance in which SALAMA holds is the largest shareholder.

Takaful operations in Saudi Arabia, the largest market for Takaful in the region, are likely to constitute a significant source of income for SALAMA.

Malaikah pointed out that the capital of SALAMA is AED 1.1 billion (about US$300 million).

He added that the company's shares are traded on the Dubai Financial Market and that,.SALAMA enjoys the rating of BBB+ from S&P and B++ from A M Best, making it one of the very few Takaful companies in the region to have been rated by either of the two rating agencies.

It holds the distinction of being the first Takaful company to be rated by S&P.

The shares of Saudi IAIC (SALAMA) began trading on the Saudi stock exchange since 16.06.2007 where the share price ranged between SR 95 and SR 99, reaching a peak price of SR 118.

Malaikah considered this high value of the company's shares a reflection of investors' confidence in the company's marketing plans and outlook. He considered this as a positive sign that the company is on the right track, depending on experience and professional pioneering in the Takaful industry.