Dubai – Mubasher: Islamic Arab Insurance Company (Salama) was granted the initial approval for a potential merger with Takaful Emarat – Insurance, according to a bourse filing.
Salama is working to fulfil all the required regulatory measures to complete the transaction, which is subject to the approval of the Securities and Commodities Authority (SCA).
The merger between the two insurers is expected to be a non-cash transaction through the issuance of additional shares by Salama to Takaful Emarat’s shareholders in order to complete the process.
On a separate note, Salama has entered into negotiations with Dubai Islamic Insurance and Reinsurance Company (Aman) to acquire part of the latter’s general, medical, and life insurance business.
In another bourse disclosure, Aman indicated that it had appointed financial and legal advisors to evaluate the transaction and finalise the deal between the companies.
In the first half (H1) of 2022, the net profits attributable to the shareholders of Salama plunged to AED 12.18 million from AED 34.58 million in H1-21. The accumulated losses stood at AED 383.86 million, accounting for 31.70% of the capital.
