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Sun 31 Aug 2008 10:51 AM

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Salama predicted to hit $50mn profit

Credit rating for Islamic insurance company suggests strong performance over next two years.

Islamic insurance company Salama is predicted to maintain strong performance with profits of up to $50 millio per year, according to a credit rating agency's latest report.

AM Best has affirmed Salama Islamic Arab Insurance Company’s Financial Strength Rating at A- (Excellent) and its Issuer Credit Rating (ICR) at a-.

“The outlook for both ratings remains stable,” the agency said on Sunday.

AM Best anticipates the company to maintain a good operating performance, with annual post-tax profit in the range of $40-50 million per annum over the next two years.

“The impressive ratings reflect Salama’s strong risk-adjusted capitalisation, supported by good operating performance and growing business portfolio,” it said.

Dr Saleh Malaikah, vice chairman and CEO of Salama, said: “The ratings further reinforces our growth strategy and will have a positive impact on our business in the changed investment milieu in the GCC."

He added: “The affirmation of our ratings is a reflection of the strength and quality of our Takaful and Re-Takaful products and services as we look to further expand our presence across the GCC and beyond.

"It is also a major impetus to the UAE government’s transparent policies in market regulation and efforts to promote economic growth and stability.”

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