SHUAA Capital, Dubai-based leading asset management and investment banking platform, has revealed its target to grow its insurance assets under management to $500 million in the next three years, as it continues to focus on expansion through new products and other offerings.
The company currently manages insurance assets worth $136 million. Over the past three years, SHUAA has managed the equity and debt (fixed income) portfolios of five major insurance companies through its managed funds and discretionary portfolios.
SHUAA’s managed funds provide insurance investors with the opportunity and comfort to invest in a regulated fund structure that is diversified, achieves cost efficiencies and economies of scale, and creates consistent, long-term value.
“Insurance, both conventional and Takaful, is a strong recurring income segment of SHUAA’s asset management business despite low margins, and as such we are focused on strategically growing our insurance assets under management. We are also investing significantly in expanding our team. Just this year, we hired a portfolio manager with experience in global equities and plan to hire more before the end of the year. This is in line with our strategy to expand our range of products and services with the right capabilities to meet the changing needs of our clients while identifying long-term value creation opportunities for them.”
According to S&P Global Ratings’ 2021 GCC Insurers Report, about 84 percent of insurers in the GCC region maintain capital adequacy above the confidence level ‘AAA’ in their capital model, compared to about 59 percent across Europe, Middle East, Africa (EMEA). As a result, insurers in this region continue to seek investments that have low volatility and generate stable cash income that can help them to manage their assets and liabilities.
In 2018, SHUAA recognized the opportunity to invest in insurance companies given the huge potential of the sector and worked with its portfolio companies to achieve better governance, value creation and profitability.