UAE-based insurance coverage corporations Islamic Arab Insurance coverage (Salama) and Takaful Emarat Insurance coverage have determined to desert their merger plans.
“Reference to the meant merger between Islamic Arab Insurance coverage Firm (Salama) and Takaful Emarat, one of many Salama’s plans for progress and growth that was introduced earlier, the corporate want to announce that merger by means of share issuance (merger) isn’t being thought of,” the Salama stated in a inventory submitting,
Nevertheless, the 2 insurers are in engaged on “different preparations” such because the acquisition of the Takaful enterprise of Takaful Emarat and never its belongings.
The non-cash deal, which secured preliminary regulatory approval in October 2022, would have bolstered Salama’s place as a number one Islamic insurer.
Salama stated it has knowledgeable the nation’s central financial institution about its plans.
“A Salama and Takaful Emarat alliance was seen as a completed deal,” reported the Gulf Information, citing a market analyst.
“All by means of the ultimate months of 2022, that they had made vital progress in the direction of reaching a closure on the deal. The newest announcement was surprising.”
As per the report, the UAE insurance coverage business is predicted to witness dealmaking exercise within the coming weeks even with out this settlement.
“The UAE insurance coverage sector will doubtless see extra consolidation – it’s a course of of making the strongest and the fittest,” an insurance coverage business supply was quoted by the publication as saying. “The authorities are extraordinarily beneficial in the direction of that course of.”
In December 2022, Salama introduced plans to purchase the insurance coverage portfolio of Dubai Islamic Insurance coverage and Reinsurance Firm (Aman).
The belongings into account embrace Aman’s motor, medical, non-motor and group life insurance coverage enterprise.