SALAMA GROUP Sh. Khaled Bin Zayed Al Nehayan Chairman 1

2 CONTENTS SALAMA Group Overview Takaful market and potential Financial Highlights Takaful

3 SALAMA Group Overview Takaful market and potential Financial Highlights Takaful

4 WHAT IS TAKAFUL? Takaful, an Arabic word meaning “joint guarantee”, is a form of mutual insurance that strictly observes the rules and regulations of Shari’a (Islamic law)Islamic law the Takaful system is based on mutual co-operation, responsibility, assurance, protection and assistance between groups of participants to uphold the principle of "bear ye one anothers burden" described as a form of mutual insurance in practice in Arabia from the 6th century There are three (3) models based on which Takaful is implemented: Mudaraba Model(Profit Sharing) Wakalah Model (Nominating another person) Combination of both

5 WHY NOT COMMERCIAL INSURANCE? As agreed upon by most contemporary Muslim scholars, commercial insurance is strictly forbidden in Islam because it contains elements of: –Al-Gharar (Uncertainty) –Al-Maisir (Gambling) –Riba (Interest)

Operational Issues of Takaful - Capital & Reserves Conventional ApproachCompany own insurance funds All reserves are available for financial management and Solvency Shareholder capital is lender of last resort. Recovery is linked to ROE considerations 6 Takaful Approach Participants own Takaful funds. Company is entrusted to manage it. Balance reserves after surplus sharing are available for financial management and Solvency Shareholder capital is lender of last resort, there are ROE considerations but recovery in interest free loan basis. Source: Tokio Marine – WTC 2008

7 WHAT IS RE-TAKAFUL? Re-Takaful (reinsurance) provides the same services as Re- insurance industry shares risk with Takaful operators, in accordance with requirements and practices of Shari’a Takaful HoldersTakaful Operator Retakaful Operator

8 SALAMA Group Overview Takaful market and potential Financial Highlights Takaful

SALAMA Journey 9 Foundation & Beginning Foundation & Beginning Formed in first Takaful Company in the world. Founding Shareholders donated initial capital of AED 10m. As per prevalent Takaful Model at that time, shareholders did not participate in the profit of the company. Formed in first Takaful Company in the world. Founding Shareholders donated initial capital of AED 10m. As per prevalent Takaful Model at that time, shareholders did not participate in the profit of the company. Company started operation in UAE and established branches in Saudi Arabia. Restructu ring & Acquisition Restructu ring & Acquisition In 2002 company was acquired by Bin Zayed Group along with other investors. Financial restructuring of company commenced, company ‘s Saudi Branches were divested in separate company based in Bahrain. In 2002 company was acquired by Bin Zayed Group along with other investors. Financial restructuring of company commenced, company ‘s Saudi Branches were divested in separate company based in Bahrain. Decision in 2004 was made to expand company outside UAE through an acquisition. IPO took place in July 2005 and capital was increased to AED 1 billion to finance acquisition and develop new products. Company was listed in DFM. It trades under symbol of “IAIC” Decision in 2004 was made to expand company outside UAE through an acquisition. IPO took place in July 2005 and capital was increased to AED 1 billion to finance acquisition and develop new products. Company was listed in DFM. It trades under symbol of “IAIC”

10 SALAMA GROUP - OVERVIEW Formed in Jan 2005 after acquisition of TARIIC in Bahrain by UAE based Islamic Arab Insurance Company (SALAMA) SALAMA is the largest Takaful and Re-Takaful Company in the world with a total Market Cap of US$ 850 million SALAMA has direct Takaful companies in UAE, Saudi Arabia, Egypt, Algeria, Senegal and Jordan and the largest Re-Takaful company in the world operating out of Tunisia

SALAMA - COMPETITIVE ADVANTAGES External –A Leading Takaful and Re- Takaful operator –Extensive geographical coverage and product diversity –Early entrant advantage –Command “brand loyalty” among clients Internal – Robust growth since inception – Strong underwriting principles & conservative investment strategy – Highly professional and experienced management team – 100+ years of combined experience in the industry 11

12 MANAGEMENT STRUCTURE - HOLDING

13 OWNERSHIP % OF ENTITIES AT END OF 2007 SALAMA HOLDING Paid Capital US$ 300m Market Cap US$ 1 b (approx), Free Float about 35%, Foreign Ownership restricted to 25%, Rating : S&P “BBB+”, A M BEST “A-” SALAMA HOLDING Paid Capital US$ 300m Market Cap US$ 1 b (approx), Free Float about 35%, Foreign Ownership restricted to 25%, Rating : S&P “BBB+”, A M BEST “A-” TARIIC HOLDING Paid Capital US$ 100m SALAMA owner ship 99.6% TARIIC HOLDING Paid Capital US$ 100m SALAMA owner ship 99.6% BEST RE Paid up Capital US$ 100m TARIIC 77.75% SALAMA 22.25% BEST RE Paid up Capital US$ 100m TARIIC 77.75% SALAMA 22.25% SALAMA Algeria Paid up Capital US$ 6m TARIIC 89.11% SALAMA Algeria Paid up Capital US$ 6m TARIIC 89.11% SALAMA Senegal Paid up Capital US$ 1m TARIIC 52.60% SALAMA Senegal Paid up Capital US$ 1m TARIIC 52.60% ESIH Egypt Paid up Capital US$ 5m TARIIC 51.15% ESIH Egypt Paid up Capital US$ 5m TARIIC 51.15% SALAMA Saudi Arabia Paid up Capital US$ 27m SALAMA 30% SALAMA Saudi Arabia Paid up Capital US$ 27m SALAMA 30% SALAMA UAE - Virtual Allocated Capital US$ 5m SALAMA 100% SALAMA UAE - Virtual Allocated Capital US$ 5m SALAMA 100%

14 GROUP STRATEGY Consolidation of Group of Entities To adopt common and standardized approach across all functions to achieve synergies without stifling innovation and initiatives. Organic Growth To enhance our products offering to include family, health and other Takaful products. Geographical Expansion Expand our geographical spread through M & A and entering new promising markets. Geographical Expansion Organic Growth ConsolidationSynergy Group Strategy

15 GEOGRAPHICAL EXPANSION Target countries for geographical expansion depending on economic feasibility: 1.Kuwait 2.Qatar 3.Oman 4.Turkey 5.Pakistan 6.Malaysia 7.Indonesia Countries for future expansion

16 SALAMA Group Overview Takaful market and potential Financial Highlights Takaful

MARKET OVERVIEW  Takaful markets are estimated is estimated US$ 5.6 billion in 2006¹  Annual premium growth rates forecast to be 20% p.a.  World insurance premium volume for both Life & Non-Life totaled $3723 billion. 1  The growth in world insurance premium real term was only 5%. 1  The life insurance premium grew by 7.7% and non-life insurance premium grew by 1.5%. 1  60% of Muslim population across the globe is under 25 years of age  Retail markets contribute very less to the gross premiums as compared to the businesses Takaful Industry is expected to grow to US$15 billion by Source: 1 – Sigma 4/2007

18 KEY DRIVERS FOR TAKAFUL INDUSTRY Young and rapidly growing population Rapid economic growth driven by oil, gas, construction, real estate & booming domestic demand Increasing privatization & development would increase demand for corporate insurance Implementation of compulsory insurance Liberalization of Insurance industry in the GCC GCC countries setting up local financial centers attracting foreign players Growing awareness of Takaful Rising income levels Higher literacy rate Increase in nuclear families

19 KEY GROWTH Europe Middle East & North Africa Asia / Southeast Asia Key Takaful Growth Regions Note: Countries with a significant Muslim Population Source: MEED, International Cooperative and Mutual Insurance Federation – ICMIF, CIA World Fact book

Global Takaful Statistics 20 RegionCountry Gross Premium in USD m% Total Est Est AfricaEgypt % Mauritania % Senegal %0.1%0.2% Sudan %3.9%4.6% Sub-Total %4.1%4.8% East Indian Sub- continentBangladesh % Pakistan % Sri Lanka % 0.2% Sub-Total % 0.3% Source : Takaful Re – WTC 2008

Global Takaful Statistics 21 Source : Takaful Re – WTC 2008 RegionCountry GWP in USD m% Total est Est Far EastBrunei % 0.7% Indonesia %1.7%1.8% Malaysia %9.1%11.8% Singapore % Thailand %0.7% Sub-Total %12.4%15.5% GCCBahrain %0.3%0.8% Kuwait %1.9%2.0% Qatar %0.8%1.1% Saudi Arabia %17.0%18.7% UAE % 1.5% Sub-Total , %20.9%24.1%

Global Takaful Statistics 22 Source : Takaful Re – WTC 2008 RegionCountry GWP in USD m% Total Est Est LevantJordan %0.3%0.4% Lebanon %0.1% Yemen % Sub-Total % 0.5% Middle East (Non Arab)Iran 2, , , %61.9%83.0% Sub-Total 2, , , %61.9%83.0% Grand Total 3, , , %

Global Takaful Statistics 23 Source : Takaful Re – WTC 2008

Insurance Premium Density – premium per capita (US$) Top Five United Kingdom6,466.7 Ireland5,564.7 Switzerland5,561.9 Denmark4,271.4 France4,075.4 World Muslim World Qatar683.5 UAE Malaysia Kuwait227.2 Lebanon181.5 Source: Sigma 4/2007

Insurance Premium Density – premium per capita (US$) Top Five Switzerland2,450.1 United States2,134.2 Luxembourg 1,817.9 Netherlands 1,757.3 Canada 1,504.3 World Muslim World Qatar UAE Kuwait Lebanon Oman Non Life Source: Sigma 4/2007

Insurance Premium Density – premium per capita (US$) Top Five United Kingdom5,139.6 Ireland4,203.8 Switzerland3,111.8 France2,922.5 Finland 2,903.1 World Muslim World Malaysia UAE 89.8 Lebanon 57.9 Kuwait40.9 Qatar30.9 Life Source: Sigma 4/2007

Insurance Penetration – % of GDP World 7.5% Top Five United Kingdom 16.50% South Africa 16.00% Taiwan 14.50% South Korea 11.10% Switzerland 11.00% Muslim World Malaysia 4.90% Lebanon 3.00% Morocco 2.90% Jordan 2.40% Tunisia2.00% Source: Sigma 4/2007

Insurance Penetration – % of GDP World 3.00% Top Five Switzerland 4.90% United States 4.80% Netherlands 4.30% Slovenia 4.00% Canada 3.90% Muslim World Jordan 2.20% Morocco2.10% Lebanon2.00% Tunisia 1.80% Angola1.70% Malaysia1.70% Non Life Source: Sigma 4/2007

Insurance Penetration – % of GDP World 4.50% Top Five United Kingdom 13.10% South Africa 13.00% Taiwan 11.60% Hong Kong 9.20% Japan 8.30% Muslim World Malaysia 3.20% Lebanon 0.90% Indonesia 0.80% Morocco0.80% Bangadesh0.40% Life Source: Sigma 4/2007

Takaful Market 30 Source: The World Takaful Current Achievement & Future Outlook: BEST RE March 2006

31 SALAMA Group Overview Takaful market and potential Financial Highlights Takaful

32 FINANCIAL HIGHLIGHTS

33 FINANCIAL HIGHLIGHTS

Thank you 34