Salama/Islamic Arab Insurance Co. (P.S.C.) (Salama) is a takaful insurance group that has a diverse book of business across the Middle East and North Africa (MENA). Intermediate industry and country risk exposure signifies that majority of Salama's business comes from the United Arab Emirates (UAE). Adequate competitive position as a result of diversified line of business and geographical spread, but diminished by the demise of Salama's Best Re reinsurance subgroup. Moderately strong capital and earnings, with volatility likely from Best Re and the UAE motor portfolio. We anticipate further underwriting losses in 2016, before a return to modest profits from 2017-2018. High risk position, reflecting Salama's increased proportion of investments in high-risk assets, relative to a weakened capital position. Financial
