Salama Islamic Arab Insurance Company has announced the successful completion of a multi-year capital restructuring programme that has helped the Emirati takaful insurer to restore its financial position and thus paving the way for its growth.

The restructuring included a AED456 million ($124.2 million) capital reduction to eliminate accumulated losses and align equity with the company’s underlying financial position.

A leading shariah-compliant takaful services provider, Salama said its solvency position is now strong and fully compliant with Central Bank of the UAE requirements, leaving it well capitalised and able to expand underwriting.

The firm also resolved more than AED420 million of legacy and non-admissible exposures, including disputed assets, historical impairments and foreign exchange-related adjustments, which it said strengthened its balance sheet and reduced volatility.

Through the restructuring, Salama said it aims to reinstate its underwriting capacity across its core business segments; re-engage key distribution channels, including corporate partnerships; driving profitable growth across Life & Wealth, Health and P&C • Enhancing its claims service, operational efficiency and customer experience

On the successful restructuring, Chairman Essa Ali Bin Salem Alzaabi said the transformation restores the company’s financial strength and positions it for long-term sustainability.

The overhaul was completed through the conversion of an AED155 million mandatory convertible sukuk and the issuance of new shares. The sukuk was fully subscribed by institutional investors Eshraq Investments and Humana Holding Limited, the company said.

With the restructuring complete, Salama said it will now focus on disciplined underwriting and sustainable growth, including restoring underwriting capacity, rebuilding distribution partnerships and expanding across its life, health and property and casualty segments.

Group CEO Mohamed Ali Bouabane said the restructuring marks a “decisive turning point”, adding that the company now has the capital base and operational discipline needed to compete effectively.

Salama will prioritise execution, improved claims service and operational efficiency as it seeks to deliver long-term value to shareholders, he added.