New Risk • May 23
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 70% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (97% accrual ratio). Shareholders have been substantially diluted in the past year (70% increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (7.8% average weekly change). Reported Earnings • May 17
First quarter 2026 earnings released: EPS: د.إ0.023 (vs د.إ0.002 loss in 1Q 2025) First quarter 2026 results: EPS: د.إ0.023 (up from د.إ0.002 loss in 1Q 2025). Revenue: د.إ240.1m (down 10% from 1Q 2025). Net income: د.إ10.9m (up د.إ11.8m from 1Q 2025). Profit margin: 4.5% (up from net loss in 1Q 2025). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. New Risk • Apr 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: د.إ250.7m (US$68.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (29% average weekly change). High level of non-cash earnings (37% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (د.إ250.7m market cap, or US$68.2m). Announcement • Mar 31
Islamic Arab Insurance Co. (Salama) PJSC, Annual General Meeting, Apr 23, 2026 Islamic Arab Insurance Co. (Salama) PJSC, Annual General Meeting, Apr 23, 2026, at 15:00 Arabian Standard Time. Location: dubai United Arab Emirates Reported Earnings • Mar 28
Full year 2025 earnings released: EPS: د.إ0.005 (vs د.إ0.027 in FY 2024) Full year 2025 results: EPS: د.إ0.005 (down from د.إ0.027 in FY 2024). Revenue: د.إ1.06b (down 3.7% from FY 2024). Net income: د.إ4.01m (down 69% from FY 2024). Profit margin: 0.4% (down from 1.2% in FY 2024). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Feb 10
Islamic Arab Insurance Co. (Salama) PJSC to Report Fiscal Year 2025 Results on Feb 10, 2026 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report fiscal year 2025 results on Feb 10, 2026 New Risk • Jan 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Emirian stocks, typically moving 24% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (24% average weekly change). High level of non-cash earnings (47% accrual ratio). New Risk • Dec 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Emirian stocks, typically moving 14% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (14% average weekly change). High level of non-cash earnings (47% accrual ratio). Minor Risk Market cap is less than US$100m (د.إ195.6m market cap, or US$53.3m). Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: د.إ0.001 (vs د.إ0.009 in 3Q 2024) Third quarter 2025 results: EPS: د.إ0.001 (down from د.إ0.009 in 3Q 2024). Revenue: د.إ266.0m (down 6.6% from 3Q 2024). Net income: د.إ804.0k (down 90% from 3Q 2024). Profit margin: 0.3% (down from 2.8% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 20% per year whereas the company’s share price has fallen by 18% per year. Announcement • Nov 08
Islamic Arab Insurance Co. (Salama) PJSC to Report Q3, 2025 Results on Nov 12, 2025 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report Q3, 2025 results at 2:00 PM, Arabian Standard Time on Nov 12, 2025 New Risk • Sep 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: د.إ366.3m (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (38% accrual ratio). Minor Risk Market cap is less than US$100m (د.إ366.3m market cap, or US$99.7m). Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: د.إ0.007 (vs د.إ0.001 in 2Q 2024) Second quarter 2025 results: EPS: د.إ0.007 (up from د.إ0.001 in 2Q 2024). Revenue: د.إ270.5m (up 3.7% from 2Q 2024). Net income: د.إ6.67m (up د.إ5.98m from 2Q 2024). Profit margin: 2.5% (up from 0.3% in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Aug 06
Islamic Arab Insurance Co. (Salama) PJSC to Report Q2, 2025 Results on Aug 08, 2025 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report Q2, 2025 results at 2:00 PM, Arabian Standard Time on Aug 08, 2025 Reported Earnings • May 16
First quarter 2025 earnings released: د.إ0.001 loss per share (vs د.إ0.011 profit in 1Q 2024) First quarter 2025 results: د.إ0.001 loss per share (down from د.إ0.011 profit in 1Q 2024). Revenue: د.إ269.1m (down 7.7% from 1Q 2024). Net loss: د.إ974.0k (down 110% from profit in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Announcement • May 10
Islamic Arab Insurance Co. (Salama) PJSC to Report Q1, 2025 Results on May 14, 2025 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report Q1, 2025 results at 2:00 PM, Arabian Standard Time on May 14, 2025 Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: د.إ0.014 (vs د.إ0.16 loss in FY 2023) Full year 2024 results: EPS: د.إ0.014 (up from د.إ0.16 loss in FY 2023). Revenue: د.إ1.12b (down 5.3% from FY 2023). Net income: د.إ13.1m (up د.إ171.5m from FY 2023). Profit margin: 1.2% (up from net loss in FY 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Announcement • Mar 24
Islamic Arab Insurance Co. (Salama) PJSC to Report Fiscal Year 2024 Results on Mar 26, 2025 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report fiscal year 2024 results on Mar 26, 2025 New Risk • Mar 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: د.إ359.9m (US$98.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 63% per year over the past 5 years. Minor Risk Market cap is less than US$100m (د.إ359.9m market cap, or US$98.0m). Announcement • Feb 11
Islamic Arab Insurance Co. (Salama) PJSC to Report Fiscal Year 2024 Results on Feb 14, 2025 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report fiscal year 2024 results on Feb 14, 2025 Reported Earnings • Nov 15
Third quarter 2024 earnings released: EPS: د.إ0.01 (vs د.إ0.001 in 3Q 2023) Third quarter 2024 results: EPS: د.إ0.01 (up from د.إ0.001 in 3Q 2023). Revenue: د.إ285.6m (down 2.8% from 3Q 2023). Net income: د.إ8.08m (up د.إ6.82m from 3Q 2023). Profit margin: 2.8% (up from 0.4% in 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 15
Second quarter 2024 earnings released: EPS: د.إ0.001 (vs د.إ0.005 loss in 2Q 2023) Second quarter 2024 results: EPS: د.إ0.001 (up from د.إ0.005 loss in 2Q 2023). Revenue: د.إ259.9m (down 16% from 2Q 2023). Net income: د.إ685.0k (up د.إ5.71m from 2Q 2023). Profit margin: 0.3% (up from net loss in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Reported Earnings • May 16
First quarter 2024 earnings released: EPS: د.إ0.011 (vs د.إ0.005 in 1Q 2023) First quarter 2024 results: EPS: د.إ0.011 (up from د.إ0.005 in 1Q 2023). Revenue: د.إ313.1m (up 14% from 1Q 2023). Net income: د.إ10.1m (up 144% from 1Q 2023). Profit margin: 3.2% (up from 1.5% in 1Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Announcement • May 11
Islamic Arab Insurance Co. (Salama) PJSC to Report Q1, 2024 Results on May 14, 2024 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report Q1, 2024 results on May 14, 2024 Announcement • Apr 05
Islamic Arab Insurance Co. (Salama) PJSC, Annual General Meeting, Apr 25, 2024 Islamic Arab Insurance Co. (Salama) PJSC, Annual General Meeting, Apr 25, 2024, at 11:00 Coordinated Universal Time. Location: company headquarter Sheikh Rashid Road Spectrum Building, 4th Floor, Block A Dubai United Arab Emirates Agenda: To review and approve the Board of Director's Report concerning the Company's activities and financial position for the year ending 31 December 2023; to review and approve the Auditor's Report for the Year ending 31 December 2023; to review and approve the internal Sharia Supervisory Committee Report for the Year ended on 31 December 2023; to review and approve the Company's Balance sheet and Profit & Loss Account for the Year ended on 31 December 2023; to discharge the Board of Directors from responsibility for the year ending 31 December 2023; to Appoint the meeting secretary and vote collector; to discharge the Auditors from responsibility for the year ending 31 December 2023; and to consider other matters. New Risk • Apr 02
New major risk - Revenue and earnings growth Earnings have declined by 26% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 26% per year over the past 5 years. Minor Risk Market cap is less than US$100m (د.إ340.5m market cap, or US$92.7m). Announcement • Feb 10
Islamic Arab Insurance Co. (Salama) PJSC to Report Q4, 2023 Results on Feb 14, 2024 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report Q4, 2023 results on Feb 14, 2024 New Risk • Nov 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 249% Paying a dividend despite having no free cash flows. High level of non-cash earnings (21% accrual ratio). Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: د.إ0.001 (vs د.إ0.002 in 3Q 2022) Third quarter 2023 results: EPS: د.إ0.001 (down from د.إ0.002 in 3Q 2022). Revenue: د.إ282.5m (up 26% from 3Q 2022). Net income: د.إ1.26m (down 24% from 3Q 2022). Profit margin: 0.4% (down from 0.7% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. New Risk • Sep 02
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.4% Last year net profit margin: 2.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 160% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (1.4% net profit margin). Announcement • Aug 10
Islamic Arab Insurance Co. (Salama) PJSC to Report Q2, 2023 Results on Aug 14, 2023 Islamic Arab Insurance Co. (Salama) PJSC announced that they will report Q2, 2023 results on Aug 14, 2023 Reported Earnings • Jun 19
First quarter 2023 earnings released: EPS: د.إ0.005 (vs د.إ0.003 in 1Q 2022) First quarter 2023 results: EPS: د.إ0.005 (up from د.إ0.003 in 1Q 2022). Revenue: د.إ340.3m (up 71% from 1Q 2022). Net income: د.إ4.14m (up 31% from 1Q 2022). Profit margin: 1.2% (down from 1.6% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • May 20
Islamic Arab Insurance Company Appoints Walter Jopp as Chief Executive Officer Islamic Arab Insurance Company (SALAMA) announced appointment of Walter Jopp as Chief Executive Officer. Jopp previously served as CEO of Middle East at Zurich International Life, where he led and managed operations in key regional markets. He grew profitability by 30% over his four-year tenure to make it one of the most profitable branches of a global insurer in the UAE. Having spent over 25 years in the insurance industry across global markets, Walter brings a wealth of experience to the role. His skills will be instrumental in preparing the company for the next phase in its successful growth trajectory, maintaining its position as a leader in the UAE Takaful industry for over 43 years. Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: د.إ0 (vs د.إ0.034 in FY 2021) Full year 2022 results: EPS: د.إ0 (down from د.إ0.034 in FY 2021). Revenue: د.إ794.6m (up 9.9% from FY 2021). Net income: د.إ28.1m (down 30% from FY 2021). Profit margin: 3.5% (down from 5.5% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Nov 19
Third quarter 2022 earnings released: EPS: د.إ0.001 (vs د.إ0.001 in 3Q 2021) Third quarter 2022 results: EPS: د.إ0.001 (in line with 3Q 2021). Revenue: د.إ223.7m (up 34% from 3Q 2021). Net income: د.إ1.65m (up 43% from 3Q 2021). Profit margin: 0.7% (in line with 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 7 non-independent directors. MD & Director Ajit Joshi was the last director to join the board, commencing their role in 2022. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 16
Second quarter 2022 earnings released: EPS: د.إ0.002 (vs د.إ0.01 in 2Q 2021) Second quarter 2022 results: EPS: د.إ0.002 (down from د.إ0.01 in 2Q 2021). Revenue: د.إ170.4m (down 7.2% from 2Q 2021). Net income: د.إ2.26m (down 82% from 2Q 2021). Profit margin: 1.3% (down from 6.7% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • May 14
First quarter 2022 earnings released: EPS: د.إ0.008 (vs د.إ0.019 in 1Q 2021) First quarter 2022 results: EPS: د.إ0.008 (down from د.إ0.019 in 1Q 2021). Revenue: د.إ187.6m (down 6.7% from 1Q 2021). Net income: د.إ9.93m (down 55% from 1Q 2021). Profit margin: 5.3% (down from 11% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: No independent directors. 7 non-independent directors. Director Mohammed Al Shehhi was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Reported Earnings • Mar 31
Full year 2021 earnings released: EPS: د.إ0.034 (vs د.إ0.13 in FY 2020) Full year 2021 results: EPS: د.إ0.034 (down from د.إ0.13 in FY 2020). Revenue: د.إ726.9m (down 18% from FY 2020). Net income: د.إ40.1m (down 73% from FY 2020). Profit margin: 5.5% (down from 17% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Third quarter 2021 earnings released: EPS د.إ0.001 (vs د.إ0.073 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: د.إ166.4m (down 39% from 3Q 2020). Net income: د.إ1.15m (down 99% from 3Q 2020). Profit margin: 0.7% (down from 32% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 21
Second quarter 2021 earnings released: EPS د.إ0.01 (vs د.إ0.02 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: د.إ183.7m (down 7.3% from 2Q 2020). Net income: د.إ12.4m (down 47% from 2Q 2020). Profit margin: 6.7% (down from 12% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 17
First quarter 2021 earnings released: EPS د.إ0.019 (vs د.إ0.015 in 1Q 2020) The company reported a solid first quarter result with improved earnings and profit margins, although revenues were flat. First quarter 2021 results: Revenue: د.إ201.2m (flat on 1Q 2020). Net income: د.إ22.2m (up 29% from 1Q 2020). Profit margin: 11% (up from 8.6% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 15
Full year 2020 earnings released: EPS د.إ0.13 (vs د.إ0.046 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: د.إ881.4m (up 4.9% from FY 2019). Net income: د.إ149.2m (up 173% from FY 2019). Profit margin: 17% (up from 6.5% in FY 2019). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Jan 11
Islamic Arab Insurance Co. (Salama) Announces Management Changes Islamic Arab Insurance Co. (Salama) has appointed Fahim Al Shehhi as the company's new CEO effective from 13 January 2021. This decision came after Parvaiz Siddiq has resigned from his position of CEO. Siddiq has occupied the CEO position in Salama for five years. Is New 90 Day High Low • Dec 16
New 90-day high: د.إ0.89 The company is up 10.0% from its price of د.إ0.80 on 17 September 2020. The Emirian market is up 11% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Insurance industry, which is up 6.0% over the same period. Reported Earnings • Nov 13
Third quarter 2020 earnings released: EPS د.إ0.073 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: د.إ274.0m (up 39% from 3Q 2019). Net income: د.إ86.7m (up د.إ86.5m from 3Q 2019). Profit margin: 32% (up from 0.1% in 3Q 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth.