Yet another consolidation is on the cards for the UAE insurance industry as the Salama – Takaful Emarat merger received preliminary regulatory clearance.
Dubai-based Salama will issue more shares to DFM-listed insurance provider Takaful Emarat owners as part of the non-cash transaction.
“Takaful Emarat is taking all necessary actions by required by regulators, including presenting the mentioned development projects to shareholders for their approval, in co-ordination with UAE Central Bank and Securities and Commodities Authority,” the official statement revealed.
Although the UAE insurance industry has long been seen as a consolidated market, recent months have finally provided concrete evidence that this process is moving along fairly quickly. Third-party administrators and insurers have both been involved in this.
The statement further added that, “Salama is currently the largest Takaful Company in UAE. Upon completion of these transactions, Salama expects to extend its market-leading position in UAE and is expected to become one of the top five largest takaful companies in the world.”
In August, a merger of Dar Al Takaful and Watania, both of which are listed on the Dubai Financial Market, was accomplished by the issuance of new shares. The issuance of additional shares to Watania resulted in Dar Al Takaful increasing its capital.
The insurance division of Oman’s OMINVEST purchased RSA, a multinational insurance group, in the Middle East in April. Additionally, Gulf Insurance Group successfully acquired the regional interests of French insurance giant AXA last year.
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