Dubai – Mubasher: Islamic Arab Insurance Company (Salama) has incurred accumulated losses of AED 286.679 million, representing 23.69% of the capital.
The accumulated losses are driven by AED 843 million losses recorded in 2012-2013 and 2015-2016 mainly from the loss-making UAE motor business and Best Re, according to the company's disclosure to the Dubai Financial Market (DFM) on Sunday.
In 2012, Thailand floods, which were the worst in the last five decades with an economic loss of $45.7 billion (AED 168 billion), and other reinsured losses have resulted in significant technical losses in subsidiary Best Re.
To tackle the accumulated losses, the company is implementing a three-pronged strategy, which focuses on improving the core business profitability, enhancing the investment income, and implementing superior corporate governance standards.
Meanwhile, the company seeks to invest in assets with low volatility and better risk-adjusted returns.
It is noteworthy to mention that in the first quarter (Q1) of 2021, the company's net income surged by 84.43% to AED 24.22 million, compared to AED 13.13 million in the corresponding quarter of 2020.