Dubai – Mubasher: Islamic Arab Insurance Company (Salama) unveiled plans to acquire the insurance portfolio of Dubai Islamic Insurance and Reinsurance Company (Aman), which covers its motor, medical, non-motor, and group life insurance business.
Subject to regulatory approvals, the transaction is expected to be concluded during the first quarter (Q1) of 2023, according to a press release.
In the first nine months (9M) of 2022, the target portfolio generated gross written contribution (GWC) worth AED 198.59 million and posted AED 5.46 million in net takaful income before the administrative overheads.
The acquisition is forecast to reinforce Salama’s existing portfolio and create significant long-term synergies. It will also enable the company to surpass the AED 1 billion GWC milestone.
Furthermore, the new portfolio will bolster Salama’s group of solutions and overall competitiveness in terms of GWC and market share, besides providing shareholders and customers with long-term and sustainable benefits.
Meanwhile, the combined insurance portfolios will operate under the Salama brand, joining the forces of two complementary entities and anchoring Salama’s position as a leading takaful provider in the UAE.
Meanwhile, the two parties entered into negotiations for the business transaction last October.
Saeed Mubarak Al Hajeri, Vice Chairman of Salama, said: “Acquiring Aman’s portfolio will allow us to add scale and new layers of expertise as we continue to pursue an ambitious strategy for growth.”
In the January-September 2022 period, Salama’s net profits amounted to AED 25.10 million, whereas the GWC totalled AED 886 million.